VOL. LVIIL NO. 18,4."53 Entered at Portland tOregon)
' Pnstnfriee an Second-Class Matter.
POKTLAXD OKEGOX, FRIDAY, JANUARY 1G, 1920
PRICE FIVE CENTS
F RIM PfiWfl MEDAL CONTROVERSY '
L UILL I nuuLU UinCMCn DV niirr
SENATE 'SPENDS
DAY ON 2" BILLS
CLEMENCEAU ENTERS
RACE FOR PRESIDENT
NAVY PLANS TO CALL
RESERVISTS TO DUTY
EUROPE IS FACING
REVIVAL OF WAR
CLOTHIERS ARE TOLD
PRICES MUST TUMBLE
BIG SCALE FRAUD
IN WEST ALLEGED
mUL-MCLf Dl Dnf L. r
TE.17T011
FORMER CHIEFS OF STAFF "OT
INEFFICIENT, HE SAYS.
PREMIER AUTHORIZES PLAC
ING NAME BEFORE CAUCUS.
;7,000 HEX TO TRAIN OX SEC
OND LIXE BATTLESHIPS.
PALMER AID WARNS RETAIL
ERS AGAINST INCREASE.
GAM
BYSFNA
House Measure Carries
in Upper Chamber.
(G DEBATE IS HELD
Executive Stripped of Power
to Appoint Members.
OLCOTT'S POLICY FLAYED
Debate, AViiich Continues for
Hours, Is Marked by Bitter At
tacks on Stale Chief.
STATE CAPITOL, Salem. Or, Jan.
15. (Special.) Governor Olcott was
stripped of all power In the appoint
ment of members of the state fish
p.n& game commission when .the sen-
late, by a vote of 17 to 11. late this
afternoon passed the house bill pro
viding for a joint fish and same com
mission of nine members , who shall
be elected by the members of the
legislature.
The vote follows:
For the bill Banks, Bell, Eberhard,
T"arrel, Handley, Huston, Hurley,
Jones. Moser, Nlckelsen. Norblad. Or
ton, Patterson, Ritner, Shanks, Smith
of Josephine and Wood. Total 17.
A grains t the bill Baldwin, Eddy,
Gill, Lachmund, La Follete, Pierce,
Porter, Smith of Coos and Curry,
Strayer, Thomas and Vinton. Total. 11.
Governor Expected to Sign.
The bill will be transmitted Imme
diately to the governor for approval.
The governor had previously given
assurance that in the event the legis
lature passes the bill he will sign it.
Immediately after his official ap
proval the legislators will meet in
joint session to name eight of the
nine men as provided under the terms
of the act.
The debate on the bill, which con
tinued from 2 o'clock this afternoon
until nearly 6 o'clock tonight, was
featured by a. bitter attack upon
Governor Olcott for "what was char
acterized by Senator Banks as his
"jellyfish" policy In handling the fish
and game controversy the past few
weeks.
Olcott Declared Weak.
"What we need is more Gibraltar
and less Jellyfish; more executive and
less clerk," thundered Senator Banks
In the course of his argument favor
ing enactment of the measure de
signed to take from the hands of the
governor all power and authority in
connection with the fish and game
commission.
Continuing, he gave a history of the
controversy without mincing words,
by asserting at the outset that the
time for political camouflage had long
since passed. He declared the time had
come when the legislature was com
pelled to take the appointing power
away from the governor because the
latter could not be depended upon to
use it discreetly, so far as this com
mission is concerned.
Lobby Held Justified.
In answering arguments of oppo
nents of the bill that it should be
defeated because the members of the
fish and game commission were at
the capitol, lobbying in behalf of the
Tn.afiiirc. Senator. Ranks staid thev had
l m. right to come here to lobby to pro
I tect the good names they hold in this
I, state and to protect themselves
against the unjust attacks which have
been made against tnem, in giving
a history of the controversy. Senator
Banks said that Governor Olcott was
the first member of the commission
to suggest that William Finley, state
biologist, be discharged.
"The governor told the commission
ers that Finley was a trouble-maker
and that there was only one way for
them to get rid of him," Mr. Banks
said. "He told them or advised them
to discharge Mr. Finley. The com
mission obeyed the suggestion of the
governor and fired Mr. Finley. What
next to we find? We find the gov
ernor coming out and publicly approv
lng this action. A few days later.
when sentiment against Finley's dls
charge appeared to be aroused, the
governor told the commissioners to
reinstate him, and when they refused
to do that he told them he would
fire them if they did not do his -bid
ding.
Sorry Business Regretted.
"It is such a sorry state of affairs
as this that this bill is here to cor
rect. I agree that it is a bit un
usual, but when the cards are stacked
you are not going to get me to play
the game."
Not only did the state executive
come in for a flaying at the hands of
those favoring the passage of the
bill, but Senator Thomas, chief
spokesman for the opposition, who
talked for more than two hours, took
up much time in ridiculing tha varied
stands which the governor has taken
so often while the fish and game con
troversy has been at its height.
"He Is a past matser at the art of
buck passing," was the sentiment of
Senator Thomas. "When he was sec
retary of state he had a clerk to
whom he could pass the buck when
occasion arose, but since he became
nni'ornnr there has been nn nn. in
lwhom he could pass the buck, so he
r aaUftrH the legislature for it. "Rut
there is one thins which all of us
Concluded ou Page 9, Column 1.
Mr. Gallivan Retorts Only One
Enlisted Man Cot I). S. M.,
"Apparently by Error,"
WASHINGTON, D. C. Jan. 15.
Controversy over awards of war serv
ice decorations by the war depart
ment was widened today when Sec
retary Baker made public a letter to
Representative Gallivan, democrat,
Massachusetts, challenging statements
made a few days ago by the latter
in the house regarding former chiefs
of staffs, while Gallivan amplified
his previous charges in a written
statement.
Mr. Baker's letter dealt with the
military records and war service of
General Tasker H. Bliss and Major
Generals Hugh L. Scott and John
Biddle, predecessors of General Pey
ton C. March. The secretary denied
emphatically Gallivan's statement that
these officers had been removed for
inefficiency and said he made the let
ter public as the only means the of
ficers assailed had of answering such
charges.
Representative Gallivan declared
only one enlisted man "apparently by
error" had been awarded a distin
guished service medal, while 654 of
ficers and 33 civilians had been given
this decoration. He quoted figures as
to awards made, adding that he did
not desire "to anticipate or befuddle
the distinguished secretary of war,"
in preparing the report called for
under the Gallivan resolution adopted
by the house.
"Let it not be forgotten," said Mr.
Galllvan's statement, "that the act
creating the distinguished service
medal abolished the certificate of
merit, the oldest decoration of the
American army, which was for en
listed men only.
"I do not care to comment upon the
figures which I append. It certainly
is Illuminating, and It Is proof con
clusive that the medal has been re
stricted to a much narrower field
than even I announced in my remarks
in congress."
The figures quoted showed the fol
lowing distribution of D. S. M's: Gen
erals, 3; lieutenant-generals, 2; ma
jor-generals, 69; brigadier-generals
12; colonels, 265; lieutenant-colonels,
78; majors, 16; captains, 2; lieuten
ants, 3; chaplains, 43; sergeants. 1;
corporals, blank; privates, 1; civilians.
male, 25; civilians, female, 8.
"How carefully our allies awarded
this same distinguished decoration"
the statement adds, "can be noted
from the following figures, which
show the awards of the IX S. M. by
countries:
"American, Including seven foreign
ers, 535; French, 144; British, 79; Ital
ian, 22; Belgian. 19; Japanese, 4; Rou
manian. 1."
REDS SOW SEEDS IN NAVY
Officers Confiscate Lierature and
Appeal to Men's Intelligence.
NEW YORK, Jan. 15. Agents of
the "reds" have .attempted .to sow
the seeds of bolshevism in the United
States navy, according to a statement
here today by Captain G. L. P. Stone,
commandant of the Bay Ridge naval
station. Captain Stone declared that
American sailors have been asked by
the reds' agents to form Soviets and
have been fully instructed as to the
method of procedure. He said that
red literature had been scattered
throughout the Bay Ridge station
and also here, and that many of the
men had been found reading It.
"We attempted to check the move
ment in two ways," the captain con
tinued. First, we confiscated all the
literature we could find and then we
appealed to the intelligence of the
men. Commanders of other stations
have told me of similar experiences.'
GAS WASTE CONDEMNED
Secretary Lane Forecasst Govern
ment Control of Supply.
WASHINGTON, Jan. 15. Warning
that the "rigid and arbitrary" hand
of government control sooner or later
must take hold of the natural gas re
sources of the country unless concert
ed effort is made to curtail the pres
ent enormous waste was given by Sec
retary Lane at the opening session
today of a conference called to con
sider necessary means of conserva
tion.
Secretary Lane declared that more
than two-thirds of the natural gas
drawn from wells was wasted.
INFLUENZA VISITS JAPAN
175 Persons Die at Kobe in One
Day, Say Reports.
VICTORIA. B. C, Jan. 13. Influ
enza has appeared in many places in
Japan, according to passengers on the
Canadian liner Empress of Russia,
which arrived here today from Yoko
hama. In three days 175 persons died
at Kobe, they said.
Two of the liner's passengers, Mr.
and Mrs. A. De Lemos, died from In
fluenza at sea. They were residents
of Panama and were bound home.
Their bodies were brought to port.
NOTE AIMEDAT EX-KAISER
Supreme Council to Ask Holland
for Extradition.
PARIS, Jan. 15. (By the Associated
Press.) The supreme council has
drafted & note to the Dutch govern
ment asking for the extradition of the
former emperor. It will probably be
sent Saturday.
The note refers to article 227 of the
treaty of Versailles and. invites Hol
land to Join the allied powers in the
accomplishment of this
Royalties on Patented
Pavements Debated.
HIGHWAY MAP IS CHANGED
House Passes 4 Per Cent
Road Indebtedness Measure.
SCHOOL CONTEST IS NEAR
Bill Requiring Majority Vole to
Adopt Constitutional Amendment
Is in. Lower Branch.
DOINGS OF SPECIAL SESSION
THURSDAY.
In the House.
Received 14 new bills.
Debated measure proposing
that majority of registered votes
must be cast to adopt amend
ments to constitution.
Passed proposed amendment
increasing indebtedness for road
purposes from 2 to 4 per cent.
Received bills appropriating
$50,000 for finishing and fur
nishing woman's building at
University of Oregon.
Bill making imprisonment
penalty for killing big game
passed.
Malheur county road bill
passed. Sherman county offers
another.
Received bill providing 1 mill
and .06 mill for O. A. C. and
university and normal school,
college and university to split
50-50.
In the Senate.
Afternoon session devoted to
debating and defeating measure
to prevent payment of royalties
on pavement.
Afternoon aession devoted to
debate on fish and game com
mission bilk . ,
Five new bills introduced.
STATE CAPITOL, Salem, Or., Jan.
15. (Special.) With but a day and a
half remaining to clean the desk and
adjourn, the senate consumed the en
tire day in debating two measures.
Free and unlimited coinage of words
flowed in the senate over the meas
ure to prevent royalties being paid on
patented pavements, and in the after
noon the fish and game commission
bill consumed the entire time. After
Senator Thomas had talked for
great length of time, some one shut
off the lights in the state house, pre
sumably as a gentle hint for the man
(Concluded on Pare 8, Column 1.)
Public Declaration Made Because
of Opposition to Can-
didacy.
PARIS, Jan. 15. Premier Cle
menceau has accepted nomination for
the presidency of the republic, it was
announced tonight.
Premier Clemence.au formally au
thorized his supporters to place his
name before the plenary caucus ot
the congress of Versailles tomorrow,
and promised that, if elected, he
would' accept the mandate entrusted
to him. The congress will convene
Saturday.
One of tho supporters of Cle
menceau told the Associated Presa
that the premier would have refrained
from a Public declaration VinH Ihnr.
been no opposition to his candidacy.
LAUGH AT JOKE IS FATAL
Grays Harbor Woman, 90, Dies
While Party Honor Guest.
A BERDEE.V. Wash. .Tar. iV rs...
cial.) While attending a birthday
arty given in honor of her ninetieth
anniversary. M-s ti i .. . .
- - . . ...lie j i . i r it i n
Lobdell. died suddenly last night, at
me jiuiue or Airs. Jesse Lamb, 717
M street, Honulam. Mis. Lobdell suc
cumbed while laughing at a Joke. Up
until a few days ago she had been
ii. out apparently had recovered.
Mrs. Lobdell is nrvlvrd hv ih,u
sons. Frank O. Dole of Aberdeen, L.
n.. uole of Heceta. Lane county. Or.,
and A. W. Dole of Provolt, Or. Mrs.
Lobdell with her husband rrH
plains by ox team In 1S61,' settling in
Oregon. Thirty-seven years ac-o the
family came to Grays Harbor, net
tling at Satsop.
SUGAR ORDER CANCELED
Koscburg Dealers Refuse to Take
Supply to Retail at 18 Cents.
ROSKBURG. Or.. Jan. IS Tw f
the largest dealers In this citv r,H
one restaurant proprietor, refusing to
pay tne quotation of $15.30 a sack
f. o. b. Portland for sugar, today can
celled aggregateorders with whole
salers for nearly 12 tons.
The price was declared to be prac
tically prohibitive. The dealers al
leged that thev would h fm-it
to retail the sugar at 18 cents, which
tney saia tne people are unable to
Day. Just what will h tha n,,tnrr,..
of the sugar situation here is prob
lematical. Retailers state that there
is enough of the present supply to
iast ror a coupie or weeks or so.
SOFT DRINK HAS "KICK"
Astoria Chemist Causes Arrest of
Several Proprietors. j
ASTORIA, Or., Jan. 15. (Special.)
A chemist employed by 1 the city
police department has found that
some of the soft drinks dispensed at
local establishments contain from 3.95
to 6.15 per cent alcohol.
As a result the proprietors of sev
eral of the soft-drink joints have
been arrested and held under $100
ball to appear for trial in the police
court.
A JOLT FOR OLD H. C. L.
: : i :
Fleet at Present Undermanned,
"Naval Chief Says U. S. Keeps
Pace With Britain.
WASHINGTON, Jan. 15. No in
crease in the personnel of the navy
over that authorized for the present
fiscal year will be asked by the navy
department for 1921, Rcar-Admiral
Coontz, chief of naval operations, to
day told the house naval affairs com
mittee. The department, however,
will ask authority to order 27,000
naval reservists to active duty for
training during the coming fiscal
year. The authorized strength for
1920 was 143,000. including appren
tices. The naval reservists will be used
entirely at sea on battleships of the
second line and the training will be
confined as much as possible to the
summer months. Admiral Coontz said.
Although full complements of' .1 the
ships the navy desires to retain in
active commission would require
107,000 men at sea, he said the ships
would be manned with 81,000 until the
present shortage of men has been
overcome.
Asked by members of the commit
tee if the naval building policy of the
United States was not predicated on
the policy of other naval powers, par
ticularly Great Britain and Japan.
Admiral Coontz responded that It was.
He also recommended a force of 368
ships as compared with the pre-war
strength of 231 vessels.
With the completion of the great
dreadnoughts Tennessee and Califor
nia, now launched and in the final
stages of fitting out, the United States
will have 17 dreadnoughts, which will
form the first battle line. Admiral
Coontz said. He recommended the
sale or breaking up of all except 13
of the pre-dreadnought battleships
and sale of a large number of other
vessels.
GAS IN HEATER EXPLODES
Apartment-House Shaken and Fur
nace Damaged.
Explosion of a quantity of gas
which had accumulated in the water
heater of an apartment house at 407
Bast Sixteenth street North yesterday
damaged the furnace room of the
building. The force of the explosion
shook the building so much that resi
dents thought th.ere had been an
earthquake. - -
The water, heater Is for use only
in warm weather, when the heating
plant is not In operation. The appa
ratus had not been used since the
recent cold weather. The blaze died
out during the janitor's absence yes
terday, and the explosion occurred
when he relighted the gas.
IRISH OFFICER ATTACKED
Under-Secretary Threatened While
Riding In Motor Car.
DUBLIN. Jan. 15. A mob attacked
motor cars in which James MacMahon.
under-secretary for Ireland, and a
Dr. Ryan were riding on Cabra road
today at noon.
The chauffeur of MacMahon's car
was slightly Injured.
British Army, Navy Heads
Summoned to Paris.
BOLSHEVIK SUCCESS ALARMS
Red Russian Drive on India
Seems to Be Feared.
POLES EXPECT ATTACK
Soviet Victories Will Give Full
Control or Odessa Coast Re
gion, Supplies, Transport.
LONDON, Jan. 15. (By the Asso
ciated Press.) Before peace with
Germany is a week oid the British
public has been brought up sharply
against the possibility of another war..
Winston Spencer Churchill, secret ar
for war; Walter Hume Long, first
lord of the admiralty; Baron Beatty,
commander of the grand fleet, and
Field Marshal Sir Henry H. Wilson,
chief of the imperial staff, left Lon
don tonight, having been hurriedly
summoned to Paris for a consulta
tion with Premier Lloyd George and
other British officials there on im
portant military and naval matters.
Bolshevist Sncceaa DlMinlets.
This summons is inevitably con
nected in the public mind with the
semi-official statement published to
day calling attention to the threat
ing situation In the middle east as a
result of bolshevik military successes,
which have given the Soviets virtual
mastery of the whole of European
Russia, for, although it is not yet
confirmed that they have entered
Odessa, it is believed it cannot be long
before they are in full possession of
the coast regions.
By their victories the - bolshevlkl
have obtained command r ennnnnna
supplies of food, raw materia coal
and rolling stock and other means 'of
transport. -
-' Poles Anticipate Attack.
Speculation is active in the Europ
can capitals as to what will be the
next move of the bolshevik!. It is
regarded as certain that, flushed with
success, they wilt not be content with
their present conquests but will seek
to extend bolshevism either east-
w--d or westward. Expert military
opinion Inclines to the belief that
their next move will be an attack on
Poland and the Baltic states, and
Warsaw dispatches to the Londan
papers already indicate that the Poles
are anticipating such a move.
The Soviets now undoubtedly com
mand formidable forces, but not suf
ficient to warrant an attempt to. ad
vance both east and west. Against
the liklihood of an attack on Poland,
which, it is said, would be popular
with the red generals, is the fact that
the bolshevlkl flanks would be ex
posed on the north to an attack by
the Letts and on the south to an at
tack by the Roumanians.
The semi-official statement Issued
at London today seems to Indicate
that the British government is more
apprehensive of a move eastward,
threatening India.
"ear East Threatened.-
Within the next three months, says
a long semi-official statement deal
ing with the near eastern affairs.
Great Britain may be facing a seri
ous bolshevist situation in the near
east, which would mean military
commitments, according to expert
opinion based on official advices from
the theaters of war.
The bolshevist occupation of trans
Caspia may be regarded virtually
complete, which makes the position
in the Caucasus most difficult from
an anti-red viewpoint. There is
little hope of stopping the bolshevik!
from overrunning the Caucasus and
if they succeed they will be able to
join Mustapha Kemal Pasha (head of
the Turkish nationalists) and other
Turks for Mesopotamian aggression.
Likewise, red occupation of trans
Caspia gives the bolsheviki a base
for operations against Persia and ex
tending to India, with the co-operation
of Afghanistan. Georgia and
Azerbaijan are anti-bolshevik, but
they are not strong enough to re
sist the invasion which threatens
them from the north, where General
Denikine's right wing is being
pressed back, and from across the
Caspian, where the bolsheviki seem
to be well established. There is a
large bolsheviki element in Baku and
a red landing there probably would
result in the recruitment of these
bolsheviki immediately.
The British military mission with
General Deniklne at the latter's head
quarters In Ekaterlnadar reports
under today's date that the Caucasus
army in the line behind the Akjsal
river repulsed In heavy fighting five
frontal attacks and an attempt to
turn its left flank.
The report of the British mission
says the advance of the bolsheviki on
Odessa has been stopped. It also
states that the report that General
Deniklne has been superseded by
General Wrangle or any other com
mander is untrue.
City Reported Captured.
The bolshevlkl have captured Rostov-on-Don,
according to a wireless
dispatch from Moscow. Ten thousand
prisoners, 32 guns, nine tanks and an
(Couciuilcu oo !' 4, Cuiuiiiii ij
Assistant Attorney-General Serves
Notice Profiteering Mast Stop.
Prices Have Reached Limit.
CHICAGO, Jan. 15. Members of the'
National Association of Retail Cloth
iers were told today by Howard Figg.
special assistant to Attorney-General
Palmer in fighting the high cost of
living, that prices would have to
come down. The present level and
any increases could not be absorbed
by the public, he said.
"While I am not predicting that
clothing prices are going down within
the next six months, I repeat that
they must go down. There is some
thing wrong somewhere. Just where 1
cannot say. I will add this, that the
government is determined to find out
just where the trouble is.
At tne present rate or Increase a
suit of clothes will be out of reach
of tho average person. Prices today
make it Impossible for many to buy
a suit. If prices don't go down tho
people will be unable to purchase and
industries will become idle."
Notice was served by Mr. Figg that
profiteering must stop. He predicted
a decrease of 25 per cent in the cost
of clothing if all business agencies
from sheep and cotton raisers to re
taller would co-operate with the gov
ernment. BRIDEGROOM ENDS LIFE
J. H. Brown Jumps From Train
Few Hours After Marriage.
.LHWISTON. Idaho, Jan. 13. John
H. Brown, well-known young man of
Idaho county, ended his life at 9
o'clock this morning by leaping from
a Camas Prairie passenger train while
crossing the Lawyer's canyon bridge,
the highest trestle of the entire
Northern Tacific sj stem. Brown was
married thre hours previously at
Grangeville to Miss Ieta Lovelace.
The couple were en route to Winches
ter. Brown left his bride in the day
coach while he went into the smoker
compartment.
Brown had been in poor health for
some time and was rejected for war
service on account of poor eyesight.
He was a member of tho student army
training corps at the University ot
Idaho during the war.
MEXICO TO SEIZE LANDS
Government Resolved to Condemn
Foreigners Oil Property.
DOUGLAS, Ariz., Jan. 15. The gov
ernment of Mexico has resolved to
buy or accpilre by condemnation pro
ceedings all of the oil lands in the
zone of 60 kilometers from the fron
tiers of the nation "that are held by
foreigners against the perfectly well
defined precepts of the constitution."
This is reported by a Mexico City
special to El Tiempo, a Cananea news
paper. HOLLAND WANTS TO JOIN
Cabinet Presents Bill for League of
Nations Membership.
THE HAGUE, Jan. 14. The cabinet
presented a bill in parliament today
proposing the entrance of Holland
into the League of Nations.
INDEX OF TODAY'S NEWS
The Weather.
TESTE It DAY'S Maximum temperature,
44 degrees; minimum, 34 degrees. A
TODAY'S Rain; southerly winds.
Foreign.
Great Britain la facing- new war. Page 1.
Premier Clemenceau accepts nomination
for presidency. Page 1.
National.
Waterpower bill passed by senate. Page 3.
Navy plans to call reservists to duty,
la go 1.
Medal controversy widened by Baker.
Page 1.
Itomefeiic.
Krjan outlines plan for ratification of
peace treaty. Cage U.'
Representative Mondoll brightens hopes of
wester?, governors for reclamation.
Pago
Millloas reported lost br Uncle Sam
through coast shipyard transactions.
Page 1.
Retail clothiers are to'.d prices must come
down. l'age .
Pacific Northweat.
"Emergency" is liberally defined by spon
sors ot pet bills. Page 5.
Two Aggie students are deprived of col
lege offices. Page
Ballot change to allow straight party
ticket vote is proposed. Page 0.
Bill placing Malheur road on state map is
passed by house. Page 8.
Schuebel cement bill defeated after bitter
debate In house. Page 0.
Amendment act is partially accepted.
Page 6.
House fish and game commission passed
by Oregon senate. 17 to 11. Page 1.
College and university , clash over funde.
Page .
Senate spends day on two bills. Page 1.
Union to protest red prosecutions. Page 15.
Sports.
Alex Trambltas to box Jimmy Duffy at
Presidio. Page 14.
Western Canadians apply for class B.
Page 14.
Multnomah Guard defeats Silent Five. 84
to 4. Page 14.
Bill Harvard Is reticent about new offer.
Page 14.
Commercial and Marine.
Apple markets weakened by large stocks
offered. Page 21.
Car order confuses Chicago corn trades.
Page -1.
Stock market haa stronger undertone.
Page -1.
Lower transcontinental rate- on steel la
boon to coast. Page lo.
Marlca arrives in port to Lake on flour
cargo. Page
Portland and Vicinity.
Liquor law bars old Sinbad's ruse. Pase
Be vaccinated or leave school, edict of
board. Page 16.
Police scour city for kidnapers of bride.
Page It.
Census enumeration officially brought to
close. Page -2.
Oregon Life sells insurance' exceeding
6,000.O0O during iai9. Page la.
Car shortage acute but relief sighted.
Page I t.
"Master George who cur "all iila" is J
jailed. Page 3.
Exposure of Huge Ship
yard Steal Expeded.
MILLIONS REPORTED HUSHED
Seven Pacific Coast Plants
Declared Involved.
GRAND JURY SUMMONED
Gigantic Frauds Said to llae Been
Perpetrated Through. "Cost
Plus" Transactions.
SAN FRANCISCO. Jan, 15. An
nouncement today of the appointment
of William' H. Tidwell. special agent
of the treasury department, to be
chief assistant to Bert Schlesinger,
special assistant United States attor
ney-general here, brought to light
the fact that shipyard frauds on the
Pacific coast said to involve many
millions of dollars have been under
investigation by tho government for
some time.
Shipbuilding plants in Oregon,
Washington and California hava been
Involved in the federal probe.
Since the appointment of Schlesin
ger. several months ago. a mass of
evidence has been gathered. It was
learned, and It 1s understood that Attorney-General
Palr-ier has ordered
the United States shipping board to
bold up claims approximating "37.
000.000 to await the outcome of in
vestigation which has been made in
connection with practically every
large shipyard in Pacific coast cities.
"Coat-Pins' Ships Involved.
Schlesinger was expected to leave
tomorrow night for Seattle, where
evidence may shortly be laid before
the federal grand Jury in connection
with the frauds, which, are said to
have involved chiefly the construction
of Bhlps for tho government on a
cost-plus" basis. The assistant attorney-general
conferred today with
Tidwell. but refused to divulge in de
tail the plans of the government In
vestigators. The government, according to In
formation from authoritative sources,
is alleged to have been defrauded of
millions of dollars through shipyard
conspiracies worked by the payment
of false vouchers for sums that ship
builders obtained illegally.
Many .Magnates Concerned.
A score of prominent shipbuilding
magnates are understood to be In
volved in the investigation, which is
said to have reached the stage calling
for special federal grand jury sessions
in the cities of Oregon, Washington
and California where big shipbuilding
plants are located.
WASHINGTON, Jan. 15. Depart
ment of Justice officials tonight ad
mitted that an investigation of finan
cial transactions in Pacific coast ship
building had been ordered, but de
clined to Indicate the nature of the
evidence. Official of the shipping
board likewise were silent. The in
vestigation, it was recalled, was in
stigated by Former Chairman Hur
ley of the shipping board
Probe Brings Surprise.
It was the intention of the board
about eight months ago to go into the
books of the shipbuilding companies,
but plans later were changed and the
whole matter turned over to Attorney-General
Palmer. There was no
intimation at that time, however, that
the alleged fraud would attain any
such proportions aa government
agents now believe they have un
covered. Information, which came out piece
meal here, tended to show that at
least "seven large shipbuilding cor
porations were involved in the al
leged fraud. Their Identity was not
disclosed and probably will not be
until federal indictments have been
obtained and executed.
The government was said to be pre
paring its case with a view to avoid
ing certain legal technicalities which
have led to long-drawn-out fights in
attempts to recover illegally-paid
funds on certain other wartime con
tracts. F.natrra Tarda Unaffected.
The opinion among officials here
seemed to be that the alleged fraud
ulent transactions were limited to
yards on the Pacific coast. It was
said that no reasons for investigat
ing Atlantic and Gulf coast yards had
been presented thus far. Although
several illegal transactions were dis
covered in some of the eastern yard)
shortly after the signing of the armi
stice they were cleared up without re
sort to courts.
SEATTLE, Jan. 15. A federal grand
Jury is to be convened here next week
to take up a number of matters, it
was said at the office of United
Stales District Attorney Saunders
here today. Mr. Saunders himself is
ill at his home and will not be at his
desk for two weeks. No one in his
office denied that the grand jury in
tended to take up shipyard matters,
among other things. Assistant Attorney-General
Schlesinger was here
several weeks ago investigating ship
yard affairs.
The announcement of the discovery
lUunouucd on l'asa 4, Cu.umn 3.)