Jlisrtiiitj jSg, rittm VOL. LVIII. XO. 18,330 Entered at Portland (Orefon) PoRtnfrice as Scond-Ciaas Matter. PORTLAND, OREGON, TUESDAY, AUGUST 26, 1919. PRICE FIVE CENTS. AMERICAN IN LEAD IN AIRPLANE RACE 500-MILE FLIGHT TAKES 3 HOURS 85 MIXCTES. BELGIUM TAKES OVER STRIP OF TEUTON SOIL WILSON ASKS CHECK SPRUCE INQUIRY ON INFLUX OF ALIENS MTES-XillCTED o - TO BE IN COMBINE V 1SICLUDES PLANES POSSESSION' OF MALMEDY IS OFFICIALLY TRANSFERRED. CONTINUATION OF PASSPORT LAW ONE TEAR REQUESTED. PHEM LABOR TO HIT HIGH DECLARED t Delay of Wage Advance to Normal Times Asked. GENERAL TRUCE REQUESTED Shopmen's Demand for 25 Per Cent Increase Denied; Smaller Rise Given. LOWER PRICES EXPECTED Government Policy Announced Is Delay for Restoration of Stability. WASHINGTON', Aug. 25. Post ponement of the settlement of wage demands until normal economic con ditions are restored, was announced today by President Wilson as the pol icy which the administration will pur sue in dealing with such questions, particularly those affecting railroad workers. The president announced also that it was neither wise nor feasible at this time, when the most important question before the country is a re turn to a normal price level, to at tempt to increase freight rates to provide funds for higher wages. Appeal Made for Trace. "We ought to postpone questions of this sort until we have the oppor-J tunity for certain calci'ation as to the relation between wages and the cost of living," the president de clared in a statement to the public explaining his decisions as to wages. It is the duty of every citizen to in sist npon a truce in such contests un til intelligent settlements can be made and made by peace and effective com mon counsel. I appeal to my fellow citizens of every employment to co operate in insisting upon and main taining such a truce." Mr. Wilson's statement was issued In connection with the decision of himself and Director General Hines on demands by railroad shopmen for a 25-per cent advance in wages, but the general policy pronounced covers also the wage demands of other hun dreds of thousands of railroad work ers, which are pending before the director-general or about to be pre sented. Others to Be Asked to Act. It is to be expected that other unions trying to obtain more pay will be asked, as the shopmen, to play their part with other citizens in re-more conspicuous than the first. He ducing the cost of living by fore-said it could be seen with a small tele going a temporary advantage which I cope. would add to transportation costs. j ' The decision of the president and' the director-general was announced to a committee of 100, representing the shopmen. In reply to their demands for a 25 per cent increase, the shop men were asked to accept an adjust ment of their pay to the basis of 10 hours' pay for eight hours work, which they contended was given other employes and denied them when the Adamson law became effective. This means an advance of the basic pay from 68 to 72 cents an hour, whereas an increase of 17 cents to So cents an hour was demanded. New Rate to Be Retroactive. In view of the delay of the railroad ; administration board on wages and working conditions in reporting on the demands of the shopmen, Director-General Hines recommended that the new rate of pay be made retro active from May 1, although the board's report was made July 16, the date of report generally being taken as the retroactive date. Under the new scale of wages, ma chinists, tool makers, boiler makers. riveters, blacksmiths, sheet metal workers and electricians, all of whom now receive 63 cents an hour, will re ceive 72 cents. Helpers will receive 49 cents an hour instead of the pres ent wage of 45 cents. Unions to Make Decision. Acting President Jewell of the railway employes department of the American Federation of Labor, his advisers said, would communicate the decision to the union locals for acceptance or rejection. A strike Tote completed yesterday, but not yet tabulated, was on the question wheth er the men should quit work to en force consideration of their demands tCoacludcd on Page 3 Column 3. Two V. S. Aviators Close Behind In First 1-eg of Toronto-Mineola International Derby. MIXEOLA. N. Y.. Aug. 25. Three fast airplanes swooped down on Roose velt field here tonight, completing the first leg of their round trip flight be tween Toronto and Mineola, in the first International aerial derby. Sergeant C. B. Coombs, a Canadian aviator, flying a DH-9, with 400 horse power Liberty motor, was the first ar rival, landing at 7:11 o'clock Just six hours and 11 minutes from the time he started on the 500-mile course at To ronto. His actual flying time, how ever, was only three hours and 35 min utes, stops having been made at Buf falo. Syracuse and Albany. Roland Rohlfs, famous American test pilot, who was the first filer to "hop off" at Toronto, despite the fact that he had previously suffered a spill when bis plane turned turtle, landed at 7:18 o'clock and Major R. M. Schroeder, an other American flier, arrived four min utes later. Rohlfs gave his time irom start to finish as six hours and 28 minutes and Major Schroeder gave his as six hours and 22 minutes. The three filers hope to start the return trip to Toronto between noon and 1 o'clock tomorrow. A large crowd which had turned out to greet the racers, remained for sev eral hours after their arrival, hoping to witness other arrivals or to get word of the landing at Toronto of some of the 28 planes which left here during the afternoon on the Mineola Toronto leg of the race. Up to a late hour, however, no more fliers had put in appearance, nor was any report re ceived of landings at Toronto. Lieutenant H. P. Logan was the first to get away here, being followed at 2 o'clock by Captain J. H. Footes. who bore a letter from President Wilson to tte prince of Wales; 2.04 by Major Elliott Springs: at 2:07 by Lieutenant Colonel H. E. Hartney and at 2:10 by Colonel H. U. ClagetL The other 2: fliers got off at one to five minute in tervals. $10,000,000 SUIT SETTLED Elm Orlu and Butte and Superior Litigation Closed. BUTTE. Mont, Aug. 25. Mining litigation involving claims variously estimated at from $10,000,000 to 1S 000.000 waa terminated here today when Judge George M. Bourquin. in United States district court, approved the formal decree of settlement In a suit between the Elm Orlu Mining company, owned by the interests of former Senator W. A. Clark, and the Butte & Superior Mining company. The Elm Orlu company Is decreed the owner of the "Rainbow Lode," while the Butte A Superior company receive certain ore bodiea within the El Orlu claim. SECOND COMET PICKED UP Rev. J. II. Met calf Finds Celestial Wanderer in Bootes. CAMBRIDGE. Mass., Aug. 25. Dis covery of a second comet in three days by the Rev. Joel H. Metcalf was an nounced today by the Harvard college observatory. After picking up In the eastern sky on August 20 the first of the year's new stray stars, he reported that on the nitrht of the 22d at 11 o'clock he found in Bootes constellation in the I western sky, another uncharted bodv ARMS SHIPPED TO MEXICO Gunboats Expected to Intercept Steamer Carrying Goods. NEW YORK. Aug. 25. Ten trunks containing arms and ammunition were shipped from this city to Mexico on the steamship Morro Castle, which sailed Friday for Havana, Progreso and Vera Cruz, according to informa tion obtained today by detectives at tached to the bomb squad. The trunks were shipped from a Broadway hotel. The department of Justice and navy department have been notified and it Is expected that gunboats will be sent out to Intercept the steamship. PRISONERS GET BONDS Utah and Oregon Members of I. W. W. Released Pending Appeal. CHICAGO. Aug. 2S. Bonds were ap proved today for the release of Charles McKinnon. Salt Lake City, and Harry L. Lloyd. Multnomah, Or., members of the Industrial Workers of the World, convicted "before Federal Judge Landta last fall. The bonds consisted of $5000. worth of liberty bonds In each case and were, furnished by Robert H. Howe of Chicago. The men were sent to Leavenworth . penitentiary and will be released peud ing appeal of their cases. PITTSBURS CARS STONED Twenty Injured in Riots; Effort to Ron Is Failure. riTTSBURG. Aug. 25. After the first three car they operated were stoned and one wrecked in a downtown .treet. the receivers of the Pittsburg Railway company made no further effort late today to break the strike of 2000 motor men and conductors which has tied up trolley transportation here for the last 11 days. More than a score of persons were In jured la rioting. 25 Per Cent More Said to Be Needed. HOWARD ELUOTT GIVES VIEW Increased Revenue Mecessary Under Private Control. GUARANTEE NOT EARNED New England Roads Declared in Bad Shape Regulation of Labor Unions Suggested. WASHINGTON, Aug. 25. Increase of at least 25 per cent in railroad rates. provided there are no more wage in creases or higher material costs, will be necessary when the carriers are re turned to private operation, the house interstate commerce committee was told today by Howard Elliott, president of the Northern Pacific "Would 25 per cent Increase solve the problem for the whole country?" asked Representative Sims, democrat. Tennessee. "I think it would." responded Mr. El liott, adding that he preferred the rate increase to the continued payment of the government guaranteed compensa tion. New England roads, he asserted, were In bad shape and were not earning the government guaranteed compensa tion. Living Coats Affected. Asked if a 25 per cent increase of rates would hamper business or in crease the cost of living, Mr. Elliott re plied that the effect, in his opinion, had been exaggerated, but he did not want to give the impression that it would have no effect on living costs generally. In advocating wage legislation, Mr. Elliott said: "Let the wives of the men vote on the strike; they are the most affected." The great majority of railroad em ployes, he said, do not want to strike. and he urged some legislation for the adjustment of disputes. He suggested that labor unions be required to Incorporate and file reports like business corporations, and that employes be compelled to serve notice before quitting work. Early Federal Ownership Feared. Alba B. Johnson of Philadelphia, for mer president of the Baldwin Locomo tive works, urged the preservation of the Interstate commerce commission as a Judicial body. He appeared before the committee as spokesman of the Railway Business association, an or ganization of manufacturers of rail way supplies. Mr. Johnson advocated creation of a federal transportation board to certify to the commission the amount of rev- (Concluded on Page 2, Column 2.) ir - - ni it gzm M&zmsmmsiim m mm , i wr.iiss4.7.gg u s '.ssiit'as:- i a m t en j . 1 .. . b& - ' ii t . .. .. JL --. J.IH.HJLI.I ---. -XJ.tJL-l.JL. ... JUL. -!--. A Inhabitants to Take Vote Within Six Months on Permanent Fate -of Territory. PARIS, Aug. 25. (Havas.) Belgium authorities today took official posses sion of the district of Malmedy, which was ceded to Belgium by Germany un der the peace treaty. The Malmedy district is a small strip of territory near the southern end of the boundary between Belgium and Rhenish Prussia with Its western ex tremity forming an indentation in the Belgian province of Liege. The peace treaty provided for the renunciation by Germany of all rights and title to this territory as well as the district of Eupen, farther north along the Prus sian-Belgian boundary. The treaty stipulates that during the eixth month after the document comes into force the Belgian authorities at Eupen and Malmedy shall open registers in which the inhabitants of the territories in question will be entitled to record in writing a desire to see the whole or part of them remain under German sovereignty. The league of nations is to review this public expression of opinion and decide as to the disposi tion of the districts. The territories of Malmedy and Eupen were separated from Belgium in 1814-15 and were assigned to Prussia. HARRY ALLEN LOSES LIFE While Watering Horse in Rivef Cot tage Grove Youth Drowns. COTTAGE GROVE, Or, Aug. 25. (Special.) Harry Allen, 10-year-old son of Mr. and Mrs. Judson Allen, was drowned at noon today In the coast fork of the Willamette, a mile north of here, where he was employed by Con tractor Ryan on Pacific highway Im provements. The boy, who had been driving a tramcar, had taken his horse to the river for water. The horse sank In the mire and, in struggling, got out nto deep water. The lad, unable to swim, stuck to the horse's back until the animal, blind and unable to save tself, went down. His younger brother. Donald, called for help and swam out to his brother's aid, but reached him Just too late. PITT0CK TAX IS $226,326 Attorney fop Estate of Publisher '' Files Report With' State. SALEM, Or., Aug. 25. (Special.) Based upon tentative valuations fur nished to the state treasurer by D. P. Price of Portland, the estate of the late Henry L. Pittock, publisher of The Ore gonian. will pay the state an inheri tance tax amounting to S226.326.80. The estimated total tax is J238.238.98. according to State Treasurer Hoff, but in case payment is made, within eight months from the date of Mr. Pittock's death a discount of 5 per cent, amounting- to $11,911.94. will be allowed. Mr. Price appears as attorney for the es tate. Money derived from inheritance taxes eventually goes into the general fund of the state. I SHE WANTS A DIFFERENT KIND OF PRICE - Conspiracy to Lift Bread Prices Scented. MATTER NOW BEING PROBED Deputy City Attorney Asserts He Has Evidence. PROSECUTION IS POSSIBLE Advance of 12 Hi Per Cent in Price Said to Have Been Purpose of Alleged Combination. Evidence that leading bakers of Portland have entered into combination to increase the price of bread 12 per cent, it is said, is in the hands of Deputy City Attorney Hindman and will be used by the city in prosecution of the bakers in the event the agree ment goes into effect. Attorney Hindman was recalled from vacation by Mayor Baker to probe the bread situation and to ascertain if the bakers of the city had entered into an agreement to increase the price of bread in violation of a city ordinance governing price-fixing. Evidence Held Conclusive. In a report to the mayor filed yester day Mr. Hindman explains that he has evidence in his possession which in dicates that the leading bakers of the city have entered into an agreement to increase the price of bread from to 9 cents a loaf. Putting of such a price Into effect would tend to corroborate the evidence already collected, accord ing to Mr. Hindman, and making con viction of the bakers concerned vir tually certain. If the report of Mr. Hindman is accepted the city will not attempt to prosecute the bakers unless the price of bread is increased. It the price is raised as contemplated Attorney Hind man says he will be ready to present his evidence in court. Bakers Reported Preparing. It is understood that the leading bakers of the city yesterday retained an attorney to represent them in the event the city institutes proceedings against them. Attorney Hindman, acting under di rection issued to him by Mayor Baker last week, will continue his Investiga tion, gathering such data as may be required in the event bread prices are increased in the future and the city desires to bring suit against the bakers. FIXING - Removal of Restrictions Expected to Bring Heavy Flood of Undesirables. WASHINGTON. Aug. 25. To prevent an influx of aliens into the United States after peace is declared, Presi dent Wilson In a message to congress today asked that the passport law in effect during the war be continued for one year after the proclamation of peace. The president asked for an appro priation of $750,000 for the use of the state department in administering the law during the remainder of the fiscal year and to enable it to increase Its organization abroad. The present or ganization, the message said, now is overwhelmed with applications for passports. "Information from the agents of the government in foreign countries," the president wrote, "indicates that as soon as the existing restrictions upon travel are removed many persons will seek admission to this country and that among the number are not only per sons undesirable from the point of view of becoming future citizens, but persons whose origin and affiliation make it inadvisable that they should be permitted to enter the United States. "Tne experience gained during the war shows that an efficient systm of passport control administered by the department of state through the diplo matic and consular offices in foreign countries, can be depended upon to ex clude practically all persons whose admission to the United States would be dangerous or contrary to the public Interest." $1 REMORSE DEBT CLEARED Portland Ccmvert Offers to Pay for Flowers Taken in Childhood. TACOMA, Wash., Aug. 25. (Special.) After "Accepting God," Mrs. M. H. Watson, 449 East Couch street, Port land, became remorseful over picking a small geranium, some honeysuckle and a bit of wandering Jew at Point Defiance park in Tacoma, when she was a little girl and today she sent the Metropolitan park board Jl to pay for what she took. The board returned Mrs. Watson's money with the sugges tion that she donated it to some worthy charity. "I never dreamed of the wrong I was doing then," Mrs. Watson said in her letter of reparation. "But after I grew older and God came into my life those things were bitter to my memory and surely want to make it right. I am glad that God has saved me and that I have an opportunity of making the wrong right." WHISKY SHIP IS REROUTED Orator for England to Go to Van couver, B. C, Not Seattle. SEATTLE, Wash., Aug. 25. The liner Orator, en route from England with a full cargo, will not land at Seattle but will go direct to Vancouver, B. C, her owners announced today. The reason for the change in the ship's destination Is the nature of her cargo, which consists of whisky ana Jam. Trouble with customs officers and the Seattle police dry squad was feared if any attempt was made to un load the ship's whisky cargo at this port. INDEX OF JODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature, 82 degrees; minimum, 5tf degrees. TODAY'S Fair and cooler; en tie- winds, mostly northerly. Foreisrn. Belgium takes ovor strip of German terri tory. Page 1. American doctrine of human rights sweeps near east. Page 15. Archduke Josph lava Hungarian port when allies give him two hours to quit. Page 2. Denikine captures another town from bol sheviki on Dniestet. Page 3. Britain's new rules for visitors may bar United States dollars. Page 2. National. President asks for continuation of passport law to check flood of undesirables. Page 1. Higher railroad rates predicted by Howard Elliott, rage l. Fight to save timber of northwest seems hopeless one. rage i. Packers' representative attacks report of federal trade commission, rage o. Senator Chamberlain to continue fight on court-martial system, rage . Domtwtlc. President asks workers to delay wage de mands until restoration ox staDiiuy. Page 1. Canadian leads first leg of airplane race. Page 1 Pacific North went. Spruce inquiry broadens to include manufac ture oi aircraiu rage a. Woman editor of Astoria News admits false hoods about legion. Page 7. Commercial and Marine. All dealers in wheat required to have licenses. Page 21. Chicago corn closes strong after wide fluc tuations. Page 21. Railway issues are strong feature of Wall street market. Page 21. Lower freight rate on ship steel held urgent necessity. Page 20. Sport. Mike McTague's manager denies his man fought Ortega above weight limit. Page 13. Recruits Schroeder and Kingdon cause Beaver manager to see- better times ahead. Page 12. Bertha Blancett, famous cowgirl, is feature of wild-west show at speedway, opening Saturday. Page 12. Weak team batting average explains why Beavers drop many ball games. Page 13. Portland and Vicinity. Plans for Roosevelt memorial drive under way. Page 10. County commissioners urged to reopen Kelly Butte quarry. Page . Fair-price committee upheaval is begun. Page 10. Bakers combine to raise bread prices, says deputy city attorney, rage l. Pacific coast faces sugar shortage until new crop, dealers assert, rage i. Keep clothing prices down, says clothiers association oiiiciai. rage i. Longshoremen's minimum wage is fixed at 89 cents an nour. rage -u. Seattle Committee Shows Interest in Aviation. U. S. AIRMEN ARE SHED Congressmen Evince Desire to Trace Timber Output. ALLIES RECEIVE SHARE Probers Display Intention to Find Oat What Proportion of Supply Got Into Aircraft. BT BEN HUR LAMPMAN. SEATTLE, Wash., Aug. 25. (Special.) Not only is the congressional sub committee hearing the probe of spruce expenditures keenly interested in the actual operations of the government extensive logging projects in Oregon and Washington, but its members are manifesting an almost equal interest in any stray bits of information that may concern the aircraft programme as a whole. The present hearing In Seattle has demonstrated that the com mittee is on the alert for testimony ranging in scene from the forests of the northwest to the fields of France. To glean actual first hand evidence of the lack cf American planes on the fighting lines in France, one officer. Captain McKey of Seattle, who fought with a unit of the 91st division, has already been interrogated. In this ex amination Chairman James A. Frear requested the witness to provide the committee with the name of at least one local airman who saw active serv ice overseas. Other Filers to Be Called. As the result of the information fur nished by Captain McKey, it Is entirely probable that Lieutenant Paul Colea of Seattle and other veteran battle aviators of the western front will be summoned before the committee to morrow mdVning, when its Seattle hear, ing is resumed, to testify from their own knowledge regarding the Ameri can air service. Inasmuch as the records of the sprue production division show that from Au gust, 1917, to the signing of the armis tice, 87,715,319 feet of spruce airplaiM stock was produced, and as It has been testified that not a single American battle plane was in action up to the close of the war, the congressional committeemen have declared their in tention to follow the trail of the van ished stock. Sixty-five per cent of the finished spruce stock, when it left the cut-up plants, was consigned to the three allies Great Britain, France and Italy. But, as the chairman of the sub-committee points 6ut, there is nothing to indicate that the remaining 35 per cent in planes of American construction ever swooped over the lines to protect the doughboys or to harass the enemy. "What became of the spruce?" is the query of the committeemen. Waste Testimony Heard. Thus far the congressional committee has devoted almost its entire sessions to direct consideration of testimony relevant to the actual production of spruce, and to the many charges of extravagance, favoritism, waste and in trigue, that have been lodged against the spruce production corporation and its former president, Brigadier-General Brice P. Disque. The latter will himself have an op portunity to explain his policies to the committee when it returns to the east. The former spruce division commandant is now engaged in business in New York. Records to Be Scanned. When the committee turns to the Portland phase of its inquiry, as it will upon the conclusion of the Seattle hear ing, the entire records of the spruce production are to be laid before it. Charges of waste and extravagance, similar to those already filed with re spect to the Olympic peninsula spruce operations will probably be made con cerning the cost-plus operations in Lin coln county, where two lines of rail road were constructed, and where the Warren Spruce company operated. The Portland hearing will be of longer duration than that held here owing to the mass of detail which is available only in the records of the corporation at its headquarters in the Yeon building. Two Days More Required. The sub-committee, comprising Rep resentative James A. Frear, Wisconsin; Representative W. W. Magee of New York, and 'Representative Clarence F. (Concluded on Page 2, Column 2.) LUDENDORFF WAR STORY CAIS'CELED. The Oregonian has received, and has examined, the advance sheets of the first installment of General Ludendorff's Story of the War. It is sufficient to say that the first chapters are not in accord with the preliminary announcements of the proposed serial. The Ludendorff Story of the War will not be printed in The Oregonian.