THE MOTIXIXG OREGONIAX, TIITJItSDAY, AUGUST 28," 1919;
DISOUE IVIEN USED BY
PRIVATE INTERESTS
Spruce Cutters Diverted, Says
Witness at Hearing.
OTHER DISCLOSURES MADE
Men Enlisted to Get Out Airplane
Material Find They Are In Woods
For Other Purpose.
fCwitlnnea from r'rt Pmr
the removal of the troop therefrom,
without avail."
PaalakairBt la nrmtmnr.
In concluding his testimony Captain
Tomer said: "A number of individuals
are going to learn that American sol
diers cannot be sold into slavery for
purely commercial purposes without
thone entity being; brought to trial.
The last witness of the Seattle in
quiry, kl. J. C'-wrla-an. ..-".
cnllertor of customs at Port Angelea
and a large property owner on the
Olympic peninsula, electrified the hearing-
with the direct charge that William
O McAdoo. aa director-general of rail
roads, made possible the construction
of the Olympic peninsula spruce line
by the Slems-Carey people, and that Its
secret purpose was to serve m
tions of the Chicago. Milwaukee St.
Paul Railroad ctrnipary.
"It was on McAdoo's orders or sug
gestions that the Siems-Oirey people
were given the contract." calmly stated
the witness. '
Mr. Carrlgan's hypothesis of the al
leged deal, based on correspondence o?
the Port Angeles-Grays Harbor offi
cials, and upon other Information, could
not be pinned down to any specific
knowledge of McAdoo's alleged inter
vention, but was substantially as
follows: .
Old Debt Declared Paid.
That McAdoo. While constructing the
Hudson river tunnels in the earlier
days of his career, came near to finan
cial failure and was saved from dis
aster by Harvey Fiske Sons, of New
York, of which firm Pliny Fiske. promi
nent New York financier, was a mem
ber. The witness declared that Mr.
Fiske went to Mr. McAdoo, when the
Olympla peninsula spruce road was con
templated, and asked for payment of
the old debt of gratitude.
In this alleged transaction the Port
.Angeles-Grays Harbor promoters were
left in the cold, while the contraot went
to Siems-Carey. whose construction of
the Olympic line was fully in accord
with the secret purposes of the Mil
waukee, declared Mr. Carrigaa.
Major Gnaarr la Called.
Major A. S. Crammer, lumberman of
Seattle, who served on General Dtsque's
staff, was . summoned to tell the
committee of his general and specific
knowledge of operations under the
spruce production corporation, and was
particularly pilloried by Chairman
Krear and Representative W. W. Magee
with respect to the Siems-Carey-H. S.
Kerbaugh corporation's construction of
the spruce road to Lake Pleasant, in
Clallam county, which coat 1112.000 a
mile.
"The way you put the question I
would say that it would be cheaper
over the shorter route," admitted Major
Grammar when asked if the Hoko river
route to Clallam bay. where thelogs
could have been rafted and towed to
the mills along the sound, was not
the must advisable course.
Dlsaae Appolataarata Cited.
Major Grammar was also quizzed as
to his opinion respecting the appoint
ment of General Disque relatives to
positions on the spruce division staff
and as to his further opinion respecting
the alleged probabilities that the Chi
cago. Milwaukee & St. Paul railroad
desired wo acquire the Clallam county
spruce line at a tremendous discount.
He replied that he had no knowledge
of either of these alleged circumstances.
"I want to testify." interpolated the
witness, "that I have never heard a
rumor regarding graft in connection
with the spruce division or corporation.
People that 1 talked to seemed sur
prised that an investigation should be
made.
"Do you feel that way?" countered
Chairman Frear.
"I did." responded Major Grammar,
laqalry Sow Approved.
"But do you now?" insisted the chair
man.
The witness replied That the Invest!'
gation had convinced hira that there
were matters that should be developed
as an educational benefit to citizens,
and that he believed the Inquiry should
be fully carried out.
"Yea. Indeed." agreed Chairman Frear.
waving his spectacles. "This investiga
tion has developed the fact that the
Clallam county road cost 1112.000 a
mile, and that Milwaukee engineers
helped determine the route, a very con
venient one. down toward Graya Har
bor. .It is right and fair that the gov
ernment and the people should bear the
expense."
Another returned aviator who saw
service In France took the witness chair
in the person of Lieutenant Norman S.
Archibald, of Seattle, who testifed that
be was sent overseas In October. 1917;
that no American training planes were
available in France, and that he and
others were trained on French Nieu
porta. an advanced type that made the
lessons highly hazardous.
V. 3. Filers -alcle Clafe."
"The French called us the Suicide
club." amplified the witness.
Eventually Lieutenant Archibald
'reached the front, aa a member of the
only pursuit group of American airmen
anywhere along the line. They were
equipped with French Spads and their
personnel numbered so pilots. This was
in the Chateau-Thierry sector. Later
the lieutenant was transferred to St.
Mihiel. where he waa shot down and
captured by the Germans on Seplem
br a. 191s. During all his service, tes
tified Lieutenant Archibald, he saw hut
one American, plane on the battle line,
and that one an obseravtlon machine,
forced to land near the airdrome. It
was a Liberty plane, he testified.-of
the DH-4 type.
Have you ever heard these planes
railed flaming coffins? asked Repre
sentative Maaee.
"Yea, sir." was the response. "Thst
was their name among all fliers."
Dr. awaaalw W ltiMii
An academic touch to the proceeding
was lent by the appearance of Dr.
Henry Suszalo. president of the ln i
verslty of Washington, former chair
man of the Washington state council
of defense, who waa summoned to tes
tify relative to his efforts in the labor
situation. It developed that the eight
hour day proposal had been shunned by
both Secretary of War Baker and Sec
retary of Labor Wilson, who desired It
to be instituted by the northwestern
loggers on their own responsibility, ana
who declined to Institute a universal
eight-hour day which would have
placed the timber Industry of Oregon
and Washington on an equal baaia with
the southern yellow pine interests.
Dr. Suzzalo testified that bla recom
mendations had included the plea that
General Disque be given unlimited au
thority in this and other matters, and
held to strict responsibility as to re
sults attained In spruce production. On
March 1, 191S, General Disque advtsod
the industry that the eight-hour day
was effective.
Coupled with the testimony of John
E. Bradnober. who presented a scale
of commercial lumber price quotations.
as decreed bv the price-fixing commis
sion of the war labor board, in which
a 20 per cent differential appeared In
favor of southern pine as against north
western fir. the revelation served to
bring caustic comment from Chairman
Frear.
Krear Assails Policy.
Chairman Frear assailed the policy
which would place the northwestern
lumber industry at a distinct disadvan
tage, bv refusing the universal eight
hour day in the lumber world, and at
the same time create a 20 per cent
differential against the fir products of
that Industry.
J. W. Lindsay. Port Angeles business
man and one of the incorporators of
th Port Angeles-Grays Harbor rail
road, surveys and data of which were
subsequentlv taken over by the spruce
production corporation for the construc
tion of the Lake Crescent line ty me
Siems-Carey-H. S. Kerbaugh corpora
tion, amplified his testimony of the pre
vious day.
The substance of Mr. Lindsay's testi
mony was that after various overtures
on the Dart of his fellow officials ana
New York principal, to Stems-Carey
and the spruce corporation, the Port
Angeles-Lake Crescent surveys were
taken over by the Siems-Carey com
pany, without a cent of compensation.
Road's Interest Indicated.
Indicating that the Chicago, Mil
waukee & St. Paul railroad actually
was Interested in the Lake Crescent
route, afterward chosen by the spruce
corporation and General Brice P. Disque
for the penetration of Clallam county's
spruce, the witness testified that at
the time his company had the proposed
line under private consideration,
various employes of -the Milwaukee
road attemptod to secure positions with
the Port Angeles-Grays Harbor rail
road, returning to the Milwaukee upon
refusal. .
The testimony veered to Major F. "W.
Lead better, of Portland, member of the
aircraft board, when Mr. Lindsay stated
that the president of his company. John
Cain, of Port Angeles, with F. A. Douty,
prominent Portland lumberman, had.
called on Major Leadbetter at Washing
ton relative to the proposed line, ana
had been refused an audience.
The witness said that Major Leadbet
ter's attitude in 'his opinion reflected
resentment against Mr. Douty, for the
reason that the latter had supported
Major Charles Sligh for the position of
contract officer.
aigaiflraat Letters Read.
. Various official correspondence be
tween officers and principals of the
projected Port Angeles-Grays Harbor
road were read by Chairman Frear, for
the purpose of establishing the fact
that these men generally believed the
Milwaukee road to have designs upon
their project and upon the line as sub
stantially built by Siems-Carey for the
Spruce Production corporation.
"Cain said that some company John i
D. Ryan was connected with owned a
large block of stcck. In the Slems
Carey company," was a portion of the
testimony, referring to the ex-director
of aircraft production, an official of
the Milwaukee line.
"It is our understanding if the gov
ernment does any financing of the road
the Milwaukee will get it through
Lovett's influence." was another para
graph from the official correspondence,
evidently referring to Judge Robert S.
Lovett. former president of the Union
Pacific and then a railroad administra
tion official.
RJa-ht-of-Way Cost Light.
John S. Cain, counsel for the Siems-Carey-H.
S. Kerbaugh corporation, tes
tified that all right-of-way to the Lake
Crescent spruce line nad been acquired
without condemnation proceedings, ex
cept In a few minor instances. and that
70.000 had been paid for titles to land
and timber. He added that several
cases yet remained for settlement, but
there would not bring the total cost
of right-of-way above 80,000. The
witness' also testified to the wide rep
utation of Siems-Carey and H. b. Ker
baugh as large and responsible rail
road contractors, but was halted by
Representative Magee.
"I called you on the question of 'title,"
said Mr. Magee. "I do not care for
what is rumor or common hearsay."
Members of the congressional com
mission leave tonight for Portland, ar
riving early tomorrow morning. Their
headquarters will be In the Hotel Ben
son. The Portland hearing is expected
to occupy a week or more.
Inspection) Trip Planned.
Chairman Frear indicated that to
morrow will be spent in general detail
and rest at Portland, and that the com
mission will In all probability leave on
Friday for an Inspection trip through
Lincoln county, visiting the spruce line
railroads, the construction work of the
Warren Spruce company, and the tracts
of timber which were to be logged.
They will return on Sunday.
Inasmuch as Monday is labor day, it
is announced that the commission will
not open its sessions in Portland until
Tuesday morning at 10 o'clock.
SPRUCE
IS OE
ROAD GRAFT
BY
Coast Contract to Aid Milwau
kee Railway Refuted.
PATRIOTISM. IS ASSERTED
"Xothing to Do .With Siems-Carey
Agreement" Announces Ex-Director-General
of Aircraft.
.s.
'1XTERFEREXCE" IX TURKEY
. IS RESENTED.
American Representatives Point Out
That Supposed Formal Act
Was Informal.
PARIS Aug. 27. An Informal warn
ing to 'Turkey that massacres of Ar
menians must cease, given recently by
Rear-Admiral Mark L. Bristol, com-
mander-f the United States naval
forces In Turkey, caused something of
a flurry In French official quarters and
In the supreme council of the peace
conference, it developed today. In
the council there was reported to have
occurred sharp criticism of American
interference in Turkey through mis
sions and otherwise, despite the fact
that the United Skates had shown no
disposition to accept the mandate for
the administration of any Turkish ter
ritory. The impression prevailed that
in this case the United States had
acted alone In a formal communication
to the Turkish government.
It was explained by the American
delegation, however, that the warning
was' delivered Informally by Admiral
Bristol several days ago: that no for
mal note was sent, but merely an In
formal statement, the United States
alone attempting to speak - for the
peace conference.
On receiving the warning. Turkey,
It appears, immediately eolft plained to
Great Britain and France, saying she
was threatened. The explanation of
the American delegation to the peace
conference that the warning was in
formal, however, apparently removed
the objections to the American action'
based upon the Idea that the United
States waa speaking for the conference.
BUTTE. Mont.. Aug. 27. Through his
Butte office. John D. Ryan, chairman of
the Anaconda Copper Mining company
board of directors, who resigned from
office as president of the company
when appointed director-general of air
craft production for the war period, is
sued a statement today refuting
charges relating to his administration
of the spruce division.'
Of the contract for construction of a
railroad in the state of Washington,
said to have coat S12.000.000 Mr. Ryan
declares that negotiations were com
pleted before he assumed office and
that because he was interested in the
Chicago, Milwaukee & St Paul rail
way, he refused to discuss the affair,
except in an advisory capacity, but re
ferred the matter to Secretary Baker.
Although Mr. Ryan is now In New
York his Butte office was authorized to
make the statement.
" Refused," Says Ryan.
He says in part:
"It is alleged that I authorized con
structlon of a government railway in
the state of Washington, which was in
effect an extension of the Chicago. Mil
waukee A St Paul railroad, of which
I was a director, and that the road cost
$12,000,000. - It is further alleged that I
was interested in land or timber to.be
reached by this road.
"These,; charges were answered by
Secretary Baker at the hearing in
Washington. August 15.
The contract with the Siems-Carey
company was entered into by proper
officers of the spruce production divi
sion on the Pacific coast more than a
month before I became director of air
craft production. May 1, 1918.
"When it waa brought to my atten
tion, I refused to discuss it. I referred
the whole matter to Secretary Baker
because the Chicago, Milwaukee & St.
Paul railroad was an interested party
and I was a director of that railroad.
and a member of its executive com
mittee.
Signing; of Contract Denied.
"Mr. Baker called in Mr. Stettinius,
then assistant secretary of war, and
stated that the contract for the rail
way construction had been negotiated
but that the United States railroad ad
ministration had refused to allow the
Milwaukee to expend its fund for construction.
"The railroad administration took the
position that the new road was being
ouiit not as an enterprise but as a war
measure.
"I never saw the contract afterwards.
I never signed it.
"Subsequent investigations revealed
that the Washington line did not cost
$12,000,000 as charged, but less than
one-third of that sum.
Patriotic Motive Asserted.
"I had nothing whatever to do with
the railroad contract and the only
thing I had to do with the Slems-
Carey-Kerbaugh company contract for
spruce production was to insist on
certain changes which I believed should
be made for the protection of the government.
"I have not and never have had any
personal interests In land or timber on
the Pacific coast or any enterprise
connected with them except as a, share
holder of the Chicago, Milwaukee & St.
Paul railroad.
"I believe the contract was entered
Into solely in the interests of the gov
ernment and its allies; that it was
necessary to build the railroad a,nd
provide for spruce production to In
sure a full supply of airplane wood:
mat the- need was urgent and unpre
cedented and everything that was done
to meet it that had come to my knowl
edge was done under capable manage
ment by men who were acting from
patriotic motives." - .
edge make it important that a thorough
state of efficiency in the American
army be reached with as little delay
as possible," Secretary Baker declared
in a letter today to Chairman Kahn. of
the house military affairs committee,
which went exhaustively into the rea
sons why he has asked congress for
authority to retain a maximum of 18.
000 commanding officers in the military
establishment up to June 30, 1920.
Pointing out that the two major
tasks now facing the war department
are the "complete rebuilding of a per
manent military force" and the liquida
tion of property valued at $6,500,000,000,
Secretary Baker said authority to re
tain a maximum of 18.000 officers was
requested in order that line officers
might be free to devote their entire
energy to army reorganization.
FIGHT IS STARTED
PAPERS SERVED OX HIGHWAY
COMMISSION AXD OTHERS.
EFFICIENT ARMY WANTED
Secretary Baker Hints at Conditions
Unknown to Public.
WASHINGTON. Aug. 27. Conditions
of which the public has little knowl-
Proposed Xtw Route of Part of Pa
cific Highway Which Would
Eliminate Riddle Protested.
SALEM. Or.. Aug. 27. (Special.)
Papers ,in connection with the case
brought by S. H. Rockhill of Riddle,
Douglas county, to enjoin members of
the state highway commission, Gov
ernor Olcott and state Treasurer Hoff
and O'.hers. from changing the present
route of the Pacific highway between
Myrtle creek and Canyonville. we-e
served on the respective state officials
here today.
The proposed new route of the high
way, contract for construction of which
has already been awarded to H. J.
Hildeburn of Roseburg. leaves the
present north and south trunk road
near Myrtle creek and is known as th
Canyonville cutoff. If built as pro
posed the highway will eliminate
Riddle.
In a letter received at the state high
way commission ornces today Simon
Benson, chairman of the board, says an
effort will be made to have the case
transferred from Douglas county to
me Multnomah county courts.
Because of the desire of the commis
sion to finish the highway between
Myrtle creek and Canyonville as soon
as possible it is believed the case will
come up for trial shortly.
WORKER'S CLAIM REJECTED
Accident Commission Refuses to
Allow Portiandcr's Complaint.
SALEM, Or., Aug. 27. (Special.)
The claim of Frank Lee Allen, a Port
land shipyard worker, who alleged that
he had lost the sight of an eye as the
result of an injury received while en
gaged in his employment, today was
rejected by the state industrial acci
dent commission.
Investigation conducted bv the com
mission disclosed the fact that Allen's
impaired vision was due to a former
Injury, according to the commissioners.
Allen's former employer and a nurse
attending the ship worker at the time
he sustained the previous injury to his
eye were among the witnesses corrob
orating the finding of the commission.
Allen asked compensation in the sum
of $850.
AIR PILOT TAKES TUMBLE
Iieutenant Cooks "Beaches" Plane
to Avoid Tree Collision.
, TILLAMOOK, Or., Aug. 27. (Special.)
Lieutenant E. D. Cook and his pas
senger, Sidney PauL furnished the
crowd at the fair grounds a thrill to
day which was not on the programme.
The lieutenant, with his passenger,
made a graceful rise in the face of a
steady sea breeze, but, having to pass
behind a clump of trees which inter
cepted the air currents, had to swerve
sharply to avoid them, and the short
turn threw the machine's nose to the
ground. Neither occupant of the plane
was hurt and there was but slight
damage to the plane, which will be
fjpTeach -Ice Cream!! , lk
few Lucious pink-cheeked peaches whipped y&A
1
(H'
v -
Lucious pink-cheeked peaches whipped
into velvet smoothness and then frozen. Is
there anything finer tasting or more re
freshing these hot days?
Order Peach Ice Cream for Dessert
at Lunch or Dinner Here Today
When You Drop in "Between
It Is W ondet -fully Good!-
388 Washington
127 Broadway.
r. .
SEVENTH CAVALRY NOT PULLED
OCT AT REQUEST..
American - Government Replies
Carranza's Note of Protest
Against Invasion.
to
Lieutenant Cook showed great skill ws said here. j
and nerve in avoiaing a serious colli
sion with the trees. .
EL PASO, Tex., Aug. 27. A demand
for the withdrawal of the American
expedition which crossed at Fort Han
cock, Tex., Saturday, was made by
Mexican officials, after the expedition
had crossed, it became known here to
day. Troops of tne' seventn cavalry,
under command of Colonel Francis M.
Glover, crossed the border, remaining
n Mexico during the day without locat
nE cattle thieves they had crossed
after. Offers to send Mexican cavalry
troops to pursue the thieves were
made by the Mexican government of
ficials if American troops were with
drawn. This offer was not accepted, it
justifiable in international law, was
made by the American Association of
Producers of Petroleum in Mexico in a
Utter presented today to the state department.
Sinaloa Bandit Dead..
MEXICO CITT, Aug:. 15. (Corre
spondence of the Associated Press.)
The death of Sllverlo ' Soto, a bandit
leader, who has been operating for
some time in the state of Sinaloa, is
reported in a communication to the
war department.
Morris Sent Hack to Japan.
WASHINGTON, Aug. 27. Roland S.
Morris, American ambassador to Japan,
who has been Investigating conditions
in Siberia for President Wilson, has
been ordered to return to Toklo.
Labor Mediators Announced.
SALEM, Or.. Aug. 27. (Special.)
L. J. Simeral, J. H. Arnold and Fred C
Sefton will represent Salem employes
on the voluntary mediation board, ac
cording to announcement made by the
Trades and Labor council here today.
Mr. Simeral is a member of the Elec
trical Workers' union, Mr. Arnold of the
Loyal Legion of Loggers and Lumber
men, and Mr. Sefton of the Capital Ty
pographical union. The employers a
week ago announced their representa
tives on the board.
WASHINGTON, Aug. 27. The Amer
ican povernment's reply to Mexico's
protest against the dispatch of Ameri
can troops into Mexico in pursuit of
bandits who held two American avia
tors for ransom was sent forward to
day, it was announced at the state de
partment. Officials declined to discuss
the contents of the note. saying it
probably would be made public in
Mexico City. . '
Reply to recent statements by mem
bers of President Carransa's official
family in Mexico City to the effect that
the Mexican government had a right
to enact laws that would result In the
confiscation of property owned by for
eigners, and that retroactive laws were
Immediate delivery, 4-ft. green slab
wood, cord wood. coaL Albina Fuel Co.
Adv.
Wild west stempede comiiMf Satur
day. Sunday and Monday. Adv.
rVf?-TABLE.TS-
37. ta-TT-'" '
m
mm
Hot
Bread
, Fresh From
Our Revolving
Ovens Full
24-Oz. Loaves
15c
Hot
Rolls
Delicious
and
Appetizing
10 Rolls
10c
Baked in Our Revolving Glass Ovens
Come in and watch us bake. Or, you don't oed to come in you can
watch from the street. . ,
You would never think that so much goodness could be put into a loaf -of
bread. . But we do not make them one loaf at a time, we make them by .
the hundreds and can afford to put the best that money can buy into each
and every loaf. - " " .
. Tastiness WTiolesomeness Perfection When we opened our first
bakery in Portland, at 146 Third street, on March 31st, we underestimated
the demand for our bread. We increased our capacity, but the crowds kept
increasing. We could not accommodate them. . We have installed another
plant. . '
Bakery No.- 2 Now Open for Business
Federal System (Chatterton) Bakeries
oor TIT"- Ci Between
ov wasningion 01.
(Bakery No. 1146 Third St.)
V"7""""'' COOK FOR THI
v -i 'ffiis Shows How Your. -ss"""
S -TJ Salad is Made in ' sssa BassBaOV
Oui" Modern Kitchen
OiAy f( THAT ARE PURE
"A- A HEAPING
ZatSkJ DISH OF
FFAi"!, OOODNESS
I rZ WE MAKE AND BAKE.
. J iry ' I EVErTVTHINO WE SERVE
THREE APPeTllINO PLACES
4th and 5th Sts.
Just East of Perkins Hdtel
UNITED STATES RAILROAD ADMINISTRATION
DIRECTOR-GENRAL OF RAILROADS
SOUTHERN PACIFIC RAILROAD LINES NORTH
OF ASHLAND
Labor Day Special Train
to
-
Tillamook County Beaches
Special Week-End Train, which leaves Portland 1:15 P. M.
Saturday, August 30th, will return from Tillamook
Monday Evening, Sept. 1st
To enable patrons to spend Labor Day at the Beach the
Week-End Train will return on Monday evening. September
1st, instead of Sunday. This will be the last trip of Week
End Train. Schedule will be as follows:
Sat. Aug:. SO.
Read Down.
P. M. ..
1:15
6:3S....,
6:59.....
f7:01
7:36 ,
8:00
Schedule of Special.
.Lv. PORTLAND Ar..
Wheeler ......
Rockaway
....... Saltalr
Bay City
Monday, Sept 1st.
Read up.
P. M.
10:50
5:22
5:00
f4:65
4:26
.Ar. Tillamook Lv 4:06
r For schedule at other points, see Agent
Other Special Trains
ACCOUNT LABOR DAY
Hillsboro Special
Sunday special from Hillsboro will be cancelled Sunday,
Aug, ilst, but will run on Labor day, Sept. 1st, leaving
Hillsboro 6:20 P. M., arriving Portland 7:30 P. M.
Forest Grove Special
Trains 125 and 126 between Portland and -Reedville will be
extended to Forest Grove Labor day, Sept. 1st, leaving
Portland 1:10 P. M., arriving Forest Grove 2:25 P. M. Leav
ing Forest Grove 3:15 P. 1L, arriving Portland 4:35 P. M.
Lake Grove Specials
Trains 309, 312, 319 and 322 will be extended to Lake Grove
on Labor day. Sept 1st, and will leave Lake Grove on return
trip at 1:05 P. M. and 8:50 P. M.
JOHN M. SCOTT,
:- ' General Passenger Agent.