VOT- J.1X n IS iAf Entered at Portland Oregon yyjLi. J. 10,401 Pcnomn Second-Own Matter. PORTLAND OREGON, WEDNESDAY, FEBRUARY 18, 1920 PRICE FIVE CENTS 'fl.5.GURK.WJFE sro.issuici Dying Man Is Found in Room of Hotel. AMERICANS ESCAPE III C Y SHELVE PUBLIC MUST BEAR SEATTLE NOMINATES CALDWELL, DUNCAN MERGER OF 3 ROADS HIGHER COAL PRIC IS AGAIN PLANNED ivinoonoiiL u i luaivo PAGT 3000 DESTITUTE REFUGEES RETIRE TO ISLAHIE. UTILITIES COMPANIES PASS OX FINAL 3IAYORAITT CHOICE TO JAMES J. HILL'S OLD PLAX 14 PER CENT INCREASE, BE MADE FROM PAIR. NOW BEFORE CONGRESS. TENDER MESSAGE. IS READ IN COURT RETURN OF ROADS VERSAILLES V K V FALSE NAME IS ASSUMED Ten Relief Workers and Six Mis sionaries From United Stales Are Included In List. Attempt to Evade Defectives Is Unsuccessful. FINANCES ARE INVOLVED Flight Believed Contemplated Avoid Prosecution; Remorse Follows Murder. CLARK LEAVES FAREWELL I NOTE TO FATHER. I "Dad: I tried honestly I did. God forgives, and I know you 1 and mother will. "RUSSELL." , This is the farewell note 1 which Russell 3. Clark, slayer of his young wife, who committed suicide yesterday, left to his father. Matt Clark, Portland broker. This note, writen with a hand which trembled, on a postcard, was received in the mail yester day by Mr. Clark. The postcard was mailed at postoffice sub station E. 282 Oak street, at 4:30 o'clock Monday afternoon and was evidently penned and mailed by the young man Just before he went to his room at the Oregon hotel. It was at this same sub-station that- the post card addressed to Chief Jenkins, in which young Clark told of committing suicide, was mailed at 2:30 o'clock that afternoon. This is believed to be the final message written or spoken by the young man, as his father remained at his bedside at St. Vincent's hospital yesterday afternoon until he died, and he did not regain consciousness from the time he was first dis covered until he had breathed his last. to CONSTANTINOPLE, Feb. 17. (By the Asscociated Press.) The Ameri can commission for relief in the near east today received a message dated February 13 from its offices at Adana, Asiatic Turkey, which was construed to mean that all the Americans have escaped from Marasb (northeast of Adana and north of Aleppo) south ward to Islahie, which is on the rail road. The message says: ' "Information this morning is that the personnel of 2000 refugees retired to Islahie with Colonel Normand. There was extreme destitution and many were sick or wounded. There is no information from Aintab or Hadjln. The situation is serious." Major D. G. Arnold of Providence, R. I., managing director of the Amer ican commission for relief in the neai east, said today that there were ten American relief workers and six American missionaries at the head quarters of the American board col lege at Marash. Among the relief workers are Paul V. Snyder of Plain view, Tex., and Evelyn Trostle of McPherson, Kan. The missionaries, all of whom are under the American board of mis sions, Boston, are James K. Lyman, Ellen O. Blakely, Bessie Hardy, Agnes Salmond, Inez Lied and Kate E. Ains- lee. Americans belonging to the Amer ican commission stationed at Aintab are Sylvia Eddy of Simsbury, Conn.; Frank W. Peers of Topeka, Kan.; Elizabeth D. Kelly of Cleveland. O., and John Boyd, Ray Travis and Lo retta Bigley. The missionaries thtre under the Boston board are Dr. John A. Mer rill, Dr. Loring Shepard and wife. Dr. Caroline Hamilton, Elizabeth Tro bridge, Lucille Foreman, Constance Barker and Louise M. Clarke. Supreme Council Warned by President. ADRIATIC DEAL DISAPPROVED American and Anglo-French Treaty Also Is Involved. ACTION HELD NO THREAT Russell S. Clark, youthful auto mobile dealer who shot and killed his wife, Frances Clark, at tbelr coun try home near Gresham some time Monday morning, was found dying with a bullet wound in his right tem ple in a room on the third floor of the Oregon hotel at 1:45 o'clock yesterday afternoon. He died at St. Vincent's hospital at 3:30 P. M. A 25-caliber automatic revolver, lying on the floor beside the bed and an empty two-ounce chloroform bottle standing on a table near the head of the bed was found when Deputy Sheriffs Christofferson and Beckman broke open the door to Clark's room. Internes from the emer gency hospital bandaged the wound and Clark wu taken to St. Vincent's hospital by the Ambulance Service company. The coroner later took charge of the body and removed It to the morgue. Conclusive evidence that the tragic ; murder and suicide was the result of young .Clark's involved financial condition, for which he faced arrest and prosecution, was brought to light when F. E. Manchester, of the Clark Manchester company, disclosed a fraudulent business deal through which young Clark had mulcted the firm of McCargar, Bates & Lively out of between 36000 and 17000. Other business ventures in which young Clark was interested also were in a sorry condition, according to Mr. Manchester, who spent all day yes terday in an effort to straighten out the affairs of the young murderer and suicide. Death Note Wrlttea. Events leading up to a solution of the double tragedy moved swiftly yesterday morning, starting at S o'clock when Chief of Police Jenkins received the following postcard in the morning mail: "I have killed myself on King's Heights. WOMAN FATALLY BURNED Explosion Causes Death of Mrs. H. W. Chapman, of Hood River. HOOD RIVER, Or Feb. 17. (Spe cial.) Mrs. Frances Chapman, wife of H. "vV. Chapman, a local merchant, was fatally burned this morning fol lowing an explosion of coal gas in the cook stove. She was 69 years old. The family lived over the store. Attracted by cries of help and smoke, about 11 o'clock this morning, Mr. Chapman ran to the stairway, where he saw his wife standing, her clothing nd hair burned away. She was given immediate medical atten tion but the injuries were too serious and she died three hours later. She regained consciousness shortly before her death and said the accident hap pened when she attempted to accel erate the fire by poking at the smold ering coal. Mrs. Chapman leaves a husband and the following eight children: W. J. Chapman, R. E. Chapman, Mrs. George Howard, Mrs. W. R. Sherwood, Mrs. Eva Mowers and Alvin Chapman, of Hood River; Mrs. Jonas Woods, Iowa, and Mrs. Ruth Ray, of Toppenish, Wash. Statement Merely Intends to Make Plain This Nation's Position on Italian Settlement. LANE GETS $50,000 PLACE Retiring Secretary to Be Executive of Big Oil Companies. LOS ANGELES, Cal., Feb. 17. Franklin K, Lane, retiring secretary of the interior, will become an ex ecutive of the Pan-American Petrole um & Transport company and the Mexican Petroleum company when he relinquishes his official position. -Mr. Lane's salary will be approximately 350,000 annually, or four times that of a cabinet officer, according to well authenticated statements. Mr. Lane will have offices in New Tork, but will frequently visit Los Angeles, where the companies named maintain extensive offices. His duties Will.be those of legal adviser and vice-president. ' WASHINGTON. Feb. 17. Joseph J. Cotter, Secretary Lane's executive assistant in thi interior department, will accompany his chief in a like capacity when the latter goes to the Doheny oil interests on leaving the cabinet March 1. AUTO MISSIONARY NEAR Baptists to Pursue Borneo Heathen in Modern Fashion. CHICAGO, Feb. 17. Baptist mis sionaries in Borneo soon will pursue CLARK." ' tne elusive savage through the un- acrorusn in a iiivver, ir me naptisi I church succeeds in raising the 9100, ! 000,000 it has set out to collect for ; church purposes. Professor A. T. Small I of the University of Chicago an nounced today. Among the items to be purchased from the fund are 75 automobiles for the use of missionaries in Borneo, Assam. India and Africa. The old-fashioned missionary who used to harrangue the pensive can nibal from a front arcat in the even- WASHINGTON, Feb. 17. The allied supreme council has been informed by President Wilson, it was disclosed today, that if. the proposed Adriatic settlement to which the American government is not a party is put into force, the United States might have to consider withdrawing the treaty of Versailles from senate consldera tlon. The president's communication was not in the nature of a threat In the common sense of the term, it was said. but was merely a statement of situation in which the United States might find itself If asked to sub scribe to agreements in which it bad no hand in the making and to which it was opposed. 1 The explanation was made In off! cial quarters that the league of sta tions was to be the Instrument for enforcing various agreements as to boundaries and the like and that if the United States became a party to the treaty of Versailles, It thus would be subscribing to the enforcement ot agreements to which it had not given either its approval or consent. Two Pacta Inseparable. It was explained further that the Anglo-French-American treaty and the treaty of Versailles were con sidered inseparable insofar as this question was concerned and that if a situation arose where the president would have to consider withdrawing the latter, he also would have to con sider withdrawing the former. ' An early announcement at the White House characterised as an "ab solute falsehood" the statement by Pertlnax in the Echo de Paris that President Wilson's communication contained a postscript bearing a threat to withdraw the treaty from the senate. At first, too, the presldent'c commu nication was referred to. as a "mem orandum" and was described as con taining only eight or ten lines. It subsequently was disclosed, however, that the communication was in the form of a note and that it covered two or three pages. This note, it was explained, was prepared from a mem orandum to Secretary Lansing which the president dictated and sent to the state department. Blame Held Misplaced. In some official quarters it was suggested today that the foreign press by describing the president's note as a threat was endeavoring to place the blame for the situation which has arisen on America instead of on the supreme council, "where it belongs." While the American notes are with held, it is known that they establish Senate Committee Hears Consumer Must Pay Biggest Part of Added Cost of Black Fuel. (Concluded on Page 3, Column 1.) WASHINGTON, Feb. 17. The pub lie was pictured as the victim of the recent 14 per cent increase in wages given coal miners in testimony today by representatives of public utilities associations before the coal strike settlement commission and the senate commerce sub-committee investigate ing the fuel situation. H. Aylesworth, executive man ager of the National Electric Light association, told the commission the public had been led to believe that the wage increase would not be passed on to the consumers, but when the operators added the Increase to the price charged the public utilities. it was lnevltaoie that the advance should be reflected In rates. He de clared that the utilities, under state or municipal regulation, were allowed so narrow a margin of profit that tney could not absorb the increase. Chairman Robinson indicated the trend of the commission's efforts to solve the fuel problem by asking if the utilities would be willing to store coal in the summer months so that the miners would have steady em ployment Mr. Aylesworth replied that they would If the additional cost of double handling of coal was offset In the price and in lower freight rates during the good weather. Continuation of government con trol of coal distribution was said by several witnesses to be absolutely necessary until restoration of normal conditions, but they freely criticized the railroad administration's exercise of this function. Confiscation of coal loaded for utilities, they said, was being practiced in a "high-handed" fashion, forcing the purchase of high priced spot coal. Edward Chase of the Burwlnd- White Coal company of Philadelphia, asserted that the navy was com mandeering coal and in such a way as to . "demoralize" the indstry. George Wellcott, Washington, rep resenting the national committee on gas and electric sections announced that gas, electric and traction com panies would ask an upward revision of rates unless relief was afforded from the fuel price increase. Public utilities corporations, be cause of their contracts with coal operators, must charge consumers the 14 per cent wage advance recently granted ' bituminous coal miners. Frank Bergan, representing the pub lic service corporation of New Jersey, tod'i&''r?ld a senate interstate com merce' sub-committee. The increase mounts to about 30 cents a ton, and 0 per cent of the total increase now is being paid by the ultimate con sumer, he said. "The increase in cost amounts to more than 3400,000 a year," said Mr. Bergan, "and we must charge it to the consumer or go out of business. If public service corporations go out of business the public is hurt, so the public loses either way." REVOLUTION BREAKS OUT New Vladivostok Government Urges Union With Soviet. LONDON, Feb. 17. Revolution has broken out in Vladivostok, Nikolsk, Tenishiesk and Blagovestchensk and all authority is in the hands of the provisional government, whose pro gramme Is in ' favor of union with soviet Russia, says a soviet wireless communication from Moscow. The dispatch adds that red troops have entered Tiraspol, 73 miles north west of Odessa. I Fitzgerald Eliminated From Race. Labor Candidate AVins Place in Election March 2. SEATTLE, Wash., Feb. 17. (Spe cial.) Major Hugh Caldwell was high man and James Duncan, labor candi date, was second in the race for nom ination for mayor at the election March 2 In the primary election held here today. At midnight the returns from 272 precincts out of 277 were: Major Caldwell 28,618, Duncan 26,041 and C. B. Fitzgerald, the present in cumbent. 21,419. In the councilmanic race Robert B. Hesketh. A. Lou Cohen, Oliver T. Erlckson, W. D. Lane, Major Carl H. Reeves and Lieutenant Phillip Tindall were the six successful nominees in the order named out of a field of 17 who filed for the three-year term. Three are to be elected at the coming election. The vote polled, more than 77,000, was the heaviest on record in Seattle at a primary election. Tindall, Reeves and Cohen centered their attacks on Councllmen W. D. Lane and Oliver T. Erlckson, charg ing them with having manifested a sympathetic attitude towards radical anti-government elements during the war. Lane was unable to explain his presence, while acting as president of the city council, at a banquet given by the "reds" to Hulet M. Wells, on the eve of his departure for the fed eral penitentiary to serve a term for seditious conspiracy, and Erickson was put on the defensive in the cam paign because he attended a meeting the interests of so-called political prisoners. Tindall and Reeves, both ex-service men, demanded that Lane and Erickson be driven out of public life and denounced them as unfit for public service. In ' return for services rendered them in the city council when their interests were concerned, practically every "jitney bus" driver carried a (Lane or Erickson banner, .it was re marked by other candidates that the jitney drivers representing a majority of their association would not display the banners of ,any other councilmanic candidates. Erickson and Lane, by their oppo sition to the purchase of the street car lines, won the friendship of the jit ney busmen. Before the city took over the trac tion company's property, the "jitneys" and the private company were con stantly at war, but when the mu nicipality acquired control of the sys tem and, its operation the jitneys were confronted with a . new proposition. The people who had patronized them began to take a larger Interest in street car transportation and the ele ment of competition was discouraged. Lane and Erickson, however,- contin ued to protect the jitneys. Mayor Fitzgerald's campaign was made on the one issue the menace of Duncanism. He charged Duncan with attempting to wrest by force the government of Seattle last year, dur ing the general strike, and substitute in its place a soviet form of govern ment and submitted a bill of partic ulars showing exactly what Duncan and his followers first threatened to do and did accomplish as a means to Justify the unlawful enda sought by them. The councilmanic contest, although of equal importance to the mayoralty view of the fact that the voters ill elect a majority of the council March 2, was completely ' over shadowed by the triangular contest for mayor. The candidates for coun cil were compelled to reach the voters principally through the medium of printed matter, owing to the fact that very few meetings were held at which they were invited to speak and thus Mrs. Hawley Tells of Hub by's. Declarations. PROMISES HELD NOT KEPT Ring Expected When Baby Came Never Arrived! TELEGRAMS ALSO SHOWN Many Details of Private Life of Oregon City Couple Aired in the Divorce Court. (Concluded on Pagre 13, Column 4.) OREGON CITY, Or., Feb. 17. (Spe cial.) "I hereby promise to pay m wife, Marjorie Fraker Hawley, 375 a month, beginning with October 1919, and at birth of the child I prom lse to make my wife a present of 31000. I promise to love, oh, so hard. and to be the sweetest boy that ever was. WUlard." This is the document that was In troduced in evidence this afternoon in the trial of the divorce suit of Marjorie Hawley against Willard P. Hawley, Jr., and was brought out on cross-examination of Mrs. Hawley by Major Cassius R. Peck for the de fense. The young wife had testified that her husband had promised to give her diamond ring after the birth of their baby. No Blng, No Baby, Says Wife. A ring like this one," explained Mrs. Hawley, exhibiting a sparkling gem on her finger, "but he never did It, and I exacted that promise from him before I would consent to have another child. I wanted a baby, and 1 told him it was customary for hus bands to give their wives gifts when a baby was born, and as he had failed to keep his first promise I insisted upon having it in writing. I told him I must have my allowance, increased irom ov to 376 a month." The pledge was written with a pen cil on a brown paper bag, and bore no date, but the witness testified that It was executed .in September, 191S, two months before the divorce pro ceedings were instituted. Endearing Phrase Bobs L'p. The phrase "oh, so hard" recurred several times this afternoon, once when Major Peck exhibited a little piece of paper which Mrs. Hawley had left on her husband's desk on visit to his office, leaving it there for him to find later. She had penned the following: "Dear Hoody. Oh, so hard. I owe you four crosses." Mrs. Hawley said these "crosses' stood for "kisses," and that "Hoody' was Willard's nickname, bestowed by his mother. The cross-examination of the plain tiff by Major Peck occupied the entire afternoon and was not concluded when court adjourned until tomorrow. Counsel for the defense undertook to prove that , right up to the time of the filing of the suit and for some time previously Mr. and Mrs. Hawley were living happily for the most part and introduced a sheaf of telegrams between the principals when Mr. Hawley -ras in California on a busi ness trip last September. All of these (Concluded on Pago 2, Column 1.) WHY WOULDN'T SECRETARY BAKER MAKE AN IDEAL SECRETARY OF STATE? 533 With a squad of police and detec tives un'ier Chief Jenkins and a dozen deputy sheriffs under Chief Criminal Deputy Christofferson a thorough search of the woods and underbrush throughout Kings Heights. was Insti tuted shortly after 3 o'clock. At about 9:30 o'clock Motorcycle Sergeant Gouldstone came across an empty chloroform bottle and two Turkish towels in the woods on Kings Heights, southwest of Westover Ter- tuv -"- vm. isu ut otuio DlA Its , and Alder streets, while the Turkish I towels still had the price mark on them, showing they had been pur- chased at the Olds. Wortman A King store. Police investigation at the Nau drug store developed that Russell Clark, the murderer and suicide, had purchased the poison there at about 2 o'clock Monday afternoon. He was remembered by a woman clerk, who said the young man had a charge ac count at the store and she knew him personally. At the point where the bottle and towels were found the marks of (Concluded so Pace IS. Column L) ent era of efficiency. Professor Small explained.- A missionary with an automobile can do eight times as much work as one not so equipped, he said. SUFFRAGE JS REJECTED Maryland Turns Down National - Amendment, 36 to 4. ' ANNAPOLIS; Md, Feb. 17. The re jection of the federal woman suffrage amendment by ths house of delegates was made certain today. A ratifica tion resolution, was defeated. 36 to Si, tWU.. JLU-M.MJ.M.l.Ml..W..nj.'X-'- 9. ---.. . '.'U'-'11A""XI hum i.i.h i I i i i i tl J H I i.i I I 1 1 m " .' Formation of Great Northern, N. P. and Burlington Systems Purpose of New Legislation. ST. PAUL, Feb. 17. Merger of the Great Northern, Northern Paciflo and Burlington railroads into one great transcontinental system, shortly after government control is relinquished this month, was forecast in high rail road circles here today. The merger was actually completed by James J. Hill, when he was in control of the roads, but it was dis solved because the federal govern ment regarded the combination as il legal. It is claimed that legislation before congress and the present gov ernment attitude would not prohibit the merger. The three roads have a combined mileage ot 27,000. It has beenstated here that the reason for the merger is to take care of 3400,000,000 in Bur lington bonds which fall due In 1921. The merger Is entirely dependent upon passage of legislation now be fore congress which would removt the legal restrictions placed by the Sherman law, a high official of the Burlington system said. HELP TIHAL TBIAL" Hoover Declares Private Ownership at Stake. WIDE-AWAKE POLICY URGED If Large Vision Is Lacking, Reaction Is Expected. RATE. RISE IS OPPOSED DROUTH BECOMES SERIOUS California May Have to Seek Grac ing for Cattle. SAN FRANCISCO, Feb. 17. If the protracted dry weather period is not broken by February 28 It will be nec essary to ship between 150,000 snd 300,000 head of cattle from the north ern part of California to the ranges of Arizona, Texas and New Mexico, according to an announcement here today by D. J. Stollery, secretary of the California Cattlemen's association. Power companies have been advised by the weather bureau that the Janu ary snowfall at Summit, In the Sacra mento watershed, was 20 Inches as compared to a normal fall for the month of 79 Inches, and at Tamarack in the San Joaquin valley watershed it was 24 inches, as compared with a normal fall of 187 Inches. AIR FIGHTERJS ARRESTED Veteran Shot Down by Gcrmuns Held Under Mann Act. TUCSON, Ariz., Feb. 17. Christo pher G. Cole, wounded war veteran and federal deputy revenue agent In charge of prohibition enforcement, was arrested here today, charged with violation of the Mann act. He went to Jail in default of 31500 hand. Cole was shot down from an airplane by the Germans during the war. READING REFUSES PLACE English Press Reports Britisher Refuses U. S. Embassy. LONDON, Feb. 17. Premier Lloyd George has offered the ambassador' ship at Washington to the earl of Reading, the former ambassador there, says the Pall Mall Gazette to day, but he has declined the appoint ment. Handicaps to Business by Failure of Transportation to Increase Considered Vital. NDEX OF TODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature. 44 degrees: minimum, 31 degrees. TODAY'S Fair; north to eaat wind. Foreign. Mew crisis develops as result of 'Wilson's Adriatic note, rage s. Calllaux. former premier of Franca, placed on trial. Page 10. Americans eacape maaaacre by Turks. Page 1. lea want no forced treaty with Russian bolshevik! government. Page 10. Supreme council informed U. S. may with draw treaty from aenata conaiaerauon. Page 1. National. Public must bear burden of 14 per cent in crease in coal price. Page 1. Soviet activities probed by senate sub committee. Page 10. Senator Chamberlain puts out his plat form tor renomlnatlon. Page 2. General March excludes W. H. Taft and Herbert Hoover from war medal class. Page 10. - Treaty compromise tangle worst yet. Page 14. Domeatic. Poindcxter urges isolation policy for Amer tea. Page 2. Merger of Great Northern, Northern Pa cific and Burlington systems before con gress. Page 1. j New women's league on record strongly In ' favor ox education, page 13. Wood and Lowden lead in favor in South Dakota. Page 0. Spruce probe report avers choice of Dlsqus was supreme Diunuer. Page 4. Jurors in Newberry trisl hear of use of our navy fjjm. Page 7. Return of railways marka final trial of private ownership, says Hoover. Page L Report of future poliry Involving ex-tier man linera to be made today. Paso 13. racifle North went. Supreme court rejects L Roy Keeley'a application to practice at bar. Page 22. Endearing messages read in trial of Haw ley divorce suit. Paga 1. I. W. W. defense fails to shake testimony of prosecution at Montctano. Pago 4. Seattle nominates Caldwell and Duncan for mayoralty race. Page 1. Spott. America accepts Llpton challenge for yachting cup. Page' 12. Washington high hoopers defeat James John. Page 12. Oakland bantam bout mar decide coast title. Page 12. Commercial and Marine. Potatoes from British Columbia undersell Oregon stock. Page 22. Bears in control of Chicago corn market. Paga 23. Stock market closes with numerous wide gains. Page 23. Wooder steamer leaves with flour cargo for New York. Page 15.. Portland and Vicinity. Clark, wife slayer, is suicide. Page 1. Rumors of change In Oregon Grocers' as sociation ara denied. Paga 24. Disappearance of 12-year-old girl Is re ported to police. Page 13. ' Wife No. 1 aocu.es J. K. alcClserr t . polygamy. Pas 14, . NEW YORK. Feb. 17. The return of the railroads to private ownership on March 1 will mean ths placing of private operation on Its "final trial." In the opinion of Herbert Hoover, ex pressed tonlgbt In his Inaugural ad dress as president of the American Institute of Mining Engineers. Mr. Hoover attacked government opera tion of either railroads or shipping as "experiments in socialism, necesl tated by the war" to which there were many fundamental objections, "No scheme of political appoint ment," Mr. Hoover said, "has ever yet been devised that will replace com petition in Its selection of ability and character. Both shipping and rail ways have today tne advantage ot many skilled personnel sifted out la a hard school of competition and eve then the government operation ot these enterprises Is not proving satis factory. Political Prrsaar DlMitwi, "Therefore, ths ultimate Ineffi ciency that would arise from the deadening paralysis of bureaucracy bas not yet bad full opportunity for development Already ws can show that no government under pressure of ever-present political or sectional interests can properly conduct the risks of extension snd Improvement or can be tree from local pressure U conduct unwarranted services In In dustrial enterprise." After referring to ths handicaps Imposed upon business through ths failure of transportation facilities to grow with the country, Mr. Hoovsr continued: ' ' "The return of the railways to ths owners places predominantly private operation upon Its final trial. If In stant energy, courage and large vision In the owners should prove lacking In meeting the Immediate situation, we will be faced with a reaction that will drive the country to soma other form of control. "Energeito enlargement of equip ment, better service, co-operation wltb employes snd the least possible ad vance In rates, together with freedom from political Interests, will bs ths scales upon which ths public will weigh the results." Turning to the question of shipping, Mr. Hoover said that while, with ths railways under the government effi ciency could be passed on to ths con sumers, "on the seas we will sooner or later find it translated to ths na tional treasury." The speaker asserted that as gov ernment officials could not engage in "haggling In fixing rates," they must take refuge la rigid regulation and fixed rates. Fleet Problems View. The effect of our large fleet" he went on, "In the world's market is thus to hold up rates, for so long as this great fleet In one hand holds a fixed rate, others will only barely underbid. If we hold up rates an in creasing number of our ships will bs idle as the private fleets grow. Ws shall yet be faced with ths question of demobilizing a considerable part of this fleet Into private hands, or frankly acknowledging that we oper ate for other reasons tban Interest on our Investment." The problem of ths relationship be tween the employer and employs was next discussed by Mr. Hoover. Ht asserted that ths country had until recently "greatly 'neglected ths hu- man factor that is so large an ele ment in our productivity," and that this neglect had accumulated much of the discontent and unrest through out the universal population and had reacted In a decrease of production. "I am dally Impressed." hs said, "with ths fact that ttur Is but one way out and that Is to again re establish through organized repre. sentatlon that personal co-operation between employer and employs In production that was a binding fores when our Industries were smaller the attitude of refusal to participate in collective bargaining with repre sentatives of the employers' own choosing Is ths negation of this bridge to better relationship." Mr. Hoover declared that hs was convinced that the vast majority of American labor "fundamentall wishes to co-operate in production and that this basis of good will can be organized and ths vitality of pro duction re-created." In a brief reference to ths Interna tional situation hs declared the safety of European civilization -was hang ing bya slender thread" and America was faced with a new orinenlalloa of world problems. "Ws are today contemplating," hi said, "maintenance of ' an enlarged army and navy in preparedness for further upheavals, while falling Is tConcludtu sa Psgs 3. Column 3 )