T11E MOltMSG OliKUUMAM, FKlUAi, -MAY 14, 1SJ30
DANIELS SAYS NOTE
TO SIMS IS FORGERY
HEAD OF GRAIN CORPORATION IN NORTHWEST WHO RECEIVES
COMPLETE EXONERATION IN FINDINGS OF
UNITED STATES ATTORNEY.
E!
'Our Store Opens at 9 A. M.
Our Store Closes at 5:30 P. ftl.
"The Store That
Undersells Because
It Sells for Cash"
Agents for the Butterick patterns and Delineator.
All styles and sizes now showing".
Blail orders receive onr prompt and careful at ten-'
tion same day &s received.
lit
FREIGHT COi
mm
5
s l!t!t
BIG
RAILROADS
Statement on Convoys
. Branded as False.
Is
APOLOGY DECLARED DUE
Original Dis-patch Icclarcl to Have
Been Ir'oiind in Britisli Kmbassy
After Investigation.
TVASHfXGTON'. May 13. Charges
that a cablegram, produced before the
senate naval investigating committee
during the testimony of Rear - Ad
miral Sims, bore a forged signature
were made today by Secretary Daniels.
He referred to. a message which Ad
miral Sims had presented as part of
his criticism of the navy department
and which purported to have been
signed by the secretary.
"Somewhere somebody was guilty
of signing my name to an official dis
patch, which the original, here pro
duced, shows I never signed," Mr.
Daniels told the committee, "or of
alterating a dispatch by erasing the
real signature and substituting
Daniels." " t
The concluding paragraph -of the
cablegram read:
"In regard to convoys, I consider
that American vessels having armed
guards are safer when sailing inde
pendently." Investlcrallon la Conducted.- - -
Mr. Daniels testified that Immedi
ately upon reading the admiral's tes
timony he knew he never sent such
a cablegram and be started an inves
tigation. The secretary said he finally found
the original dispatch in the British
embassy through which it had been
sent and that the name signed to it
was "A. F. Carter, by directions of the
chief of naval operations."
"The statement that it was sigrned
'Daniels,' is untrue," said the secre
tary. "No such telegram signed
"Daniels." was ever sent to Admiral
Sims. Jn his testimony he reiterated
that this dispatch made him, 'about
ready to jump overboard, and that it
was signed with my name, conveying
the Impression that the civilian secre
tary of the navy had personally
passed upon the question of a par
ticular method to protect shipping
and was resisting the adoption of the
convoy system. I knew I never en
tertained the opinion stated in the
dispatch he displayed."
A polony Is Held Doe.
Admiral Sims should produce the
person who changed the signa.tu.re,
Mr. Daniels declared, adding the. ad
miral owed "'an apology to me and to
the country for the impression under
taken to be made by.hls testimony
based upon a false signature."
Much of the secretary's testimony
today was devoted to the controversy
over convoying troopships. He in
sisted that the admiral's course re
garding the protection of troopships
caused the department "much anxiety"
and finally he "bluntly" told Sims that
everything was secondary to th safe
guarding of vessels carrying Ameri
can soldiers.
Mr. Daniels charged that Admiral
Sims withdrew the dpstrovr Rrnrt
from the first convoy as soon as it
arrived abroad, leaving the transports
without protection for the return voy
age. Admiral Sims, he said, finally
was instructed to protect the ships
when they left France.
Attack Accounts Presented.
Referring to Sims' testimony that
the first trip convoy, sent over in
June, 1917, was not attacked by sub
marines and that there was no sub
marine within 300 miles of the place
where the attacks were said to have
occurred, the naval secretary present
ed messages from Admiral Sims giv
ing accounts of such attacks. The
first of these messages was dated
June 30, 1917. and said:
"First group attacked by sub
marines, longitude 25 degrees 30. be
fore arriving at first rendezvous.
Second group attacked Jongitude 8.
Strongly believe that enemy obtained
information Dy intercepting and de
ciphering dispatches sent me in naval
anaone s code.
un me next day. Julv 1. 1917" Mr
Daniels said, "Admiral Sims sent this
cablegram: "It is practicallv certain
that the enemy knew position of the
ursi rendezvous and accordingly sent
Ruomarme to intercept before June
ture with destroyers."
'We. had no reaeson then and have
no reaeson now, to doubt Admiral
Sims' own positive statements, made
ii ine time, that the convoy was at
lacKea, me reports of Admiral
u .eaves ana the official report of th
jrrencn general staff to the
effect."
Sims' Attitude Discussed,
Mr. Daniels also testified that Ad
miral Sims had objected to the use of
tw-ici iiiu iiner jeviaman as a
troop ship on the ground that her
great length made her a better target
ior torpedoes than smaller vessels. He
bibo saia ine admiral had contended
that the ship should be operated to
Liverpool rather than to Brest be
cause of better facilities for handling
her cargo.-
The department, the secretary said,
followed the admiral's advice with the
result that the Leviathan had to await
nn enure lunar month at Liverpoo
before she could set out of th v,r.
bor. Later the Leviathan operated
out of Brest, where her turn around
was measured in hours Instead ot
weens ana she broke all records in
inn numDer or troops transported.
iir. uunieis presented various offi
cial documents to support his conten
tion that the convoy system wns nrir.
inally sponsored by the American navy
"u.uii ii was not adopted fullv until
several months after the United States
entered Jhe war and had sent many
destroyers and nthpr nroft
' thus providing the ships to make the
operation oi tne convoy system pos
sible.
MR. HQUSER -EXONERATED
GRAXD JURY CHARGES FOliSD
WHOLLY GROUNDLESS.
Alleged Misuse of Federal Position
and Manipulation of Wheat
Market Held Unproved.
(Continued From First Page.)
same
SIMS WITHHOLDS COMMENT
Recall or Admiral for More Test!
mony to Senate Expected.
NEWPORT, R. I., May 13. Rear
Admiral William T. Sims- today re-
iusea to cqmment on the- statemen
by Secretary of the Navy Daniels he
fore the senate naval investigating
cummmee mat tne secretary's name
naa been forged to a telegram at
tributed to him by Admiral Sims.
. . It was said here that naval officers
expect Admiral Sims will be recalled
bctore the committee for further tes
timony.
v
River Service Discontinued.
SALEM, Or., May 13. (Special.)
Because lack of patronage service o
the Portland Navigation company be
tween Salem and Portland was dis
continued today. The service wvll not
" resume until the movement of hops
and other produce begins in August.
S - R. greet)
Holman Fuel Co.
Adv.
tamps for cU
Mats SS3. 0-J
' if v. :'X;-. I
I f . ' - -f r, , , ' J (
I ft -
II - 4 - . A' i
h -
MAX H. ROl'SER.
publication by Mr. Humphreys yes
terday follows:
Max H. Houser was accused in a
special report by the grand jury at
Spokane of having made Improper use
of his position with the United States
grain corporation, to the end that im
mense profits were made by the Port
land Flouring Mills company and the
Pacific Grain company. No indictment
was returned. Mr. Houser owns these
wo companies and their subsidiary
companies. They do a business ex
ceeding $50,000,000 annually. Mr. Hou
ser is vice-president of the grain cor
poration, and .has charge of zone 10,
which includes Oregon, Washington
and Idaho.
Under instructions from the at
torney-general I have investigated
his matter. Inquiry has been made
nto all facts asserted as supporting"
the charges contained in the special
report. All rumors which have come
to my attention have been traced. This
inquiry was made with access to all
the books and records of these com
panies, to income tax reports and to
bank records and statements, with
he assistance and co-operation of
George R. Mayo, special bank "ac
countant, who was sent from New
York specially to do this work. In
quiry was made among the competi
tors in grain and milling of Mr. Hou
ser's companies, and In all places
where information might be expected.
Xo Manipulation Found.
I find that Mr. Houser personally
and through his companies did not
make immense profits. The profits
were small. There was no violation
of law, no improper use by Mr. Houser
of his position, and no evidence of
manipulation of wheat prices by of
ficials of the grain corporation. On
the contrary, the evidence, indicates
that Mr. Houser sacrificed his time
and business to the work of the grain
corporation.
It was asserted that Mr. Houser
had caused the publication in news
papers, August 9, 1919, of an article
saying thai wheat growers who did
not sell would be liable to prosecu
tion. Such an article was published.
Some growers were undoubtedly in
fluenced by .i to sell. There is no
evidence that Mr. Houser either in
spired or approved the article. As
soon as it came to his notice he denied
it positively and sent a bulletin of
denial to all newspapers in zone 10.
All Charges Groundless.
The charges made by the grand
jury reflecting on Mr. Houser are all
summed up in the statement that he
was able by reason of his position
with the grain corporation to manip
ulate and operate his mill and grain
companies to an immense profit to
himself and associates. These charges
are without any foundation in fact. I
have not attempted to pass on the
recommendations made by the grand
Jury to the president and to con
gress.
Special Bank Accountant George K..
Mayo summarizes his findings as fol
lows:
"The final analysis of my investiga
tion as to Max M. Houser, second vice-
president of the United States Grain
corporation, and his activities in the
grain and milling business, is summed
up in the following paragraph:
"Mr. Houser s grain and muling In
terests represent an invested capital
of $3,720,000, and are capitalized for
this amount. During the six months
ended December 31, 1919, the net
profit of all these interests was $179,-
106.16, equal to 4 4-6 per cent on
total capital stock.
"The charges contained in the grand
jury report are herewith "stated sep
arately, together with the result of
the investigation as to each specific
charge:
The majority or tne mills in the north
west are owned by half a dozen concerns.
"The investigation, shows there are
in the zone comprising Washington,
Oregon and Idaho 1086 licensed ware
housemen, grain dealers and brokers,
also 273 mills with 232 different
owners."
We believe that S3 per cent of the 1919
wheat crop went into the hands of these
half-dozen grain companies, and was pur
chased prior to October 13 before any
material advance in price.
"(a) It- is very likely true that 85
per cent of the wheat crop of J919 was
sold by the farmers previous to Octo
ber 15, if the price was satisfactory.
"(b) The investigation shows the
six large concerns mentioned pur
chased only 40 per cent of the crop
during the entire season.
"(c) The Pacific Grain company
paid, in August premiums ranging
from 13 to 18 cents, from .13 to 20
cents in September, and from 16 to
28 cents in October."
These grain companies have been able to
advance prions by air-jl to each other and
through manipulations.
"The records of the Pacific Grain
company do not show any manipula
tions. It sold wheat to nine grain
companies, but there were no repur
chases, with the exception of one
lot of 15.000 bushels."
Although the greater part of the wheat
was purchased around yj.07, etc.
"The average price paid for hard
wheat by the Pacific Grain company
was $2,172, country basis, equal to
$2,413 No. 1 coast, sacked basis, and
for soft wheat $2,024, country basis,
equal to $2,264 No. 1 coast sacked
basis."
The grain companies are selling ths
wheat to their own milling concerns at the
prevailing mnrket price.
"The 12,000,000 bushels of wheat
purchased by the Pacific Grain com
pany were sold at an average ad
vance or 1 4-iu cents over the cost
price (i.e. the price paid the farmer
brought to a No. 1 coast, sacked
basis).
Prices Based on Coot.
Their own mills are asserting the rlcht
to manufacture flour on the basis of this
price (prevailing market price).
"Investigation of the books of the
Portland Flouring Mills company
shows that the prices of flour were
not based on the prevailing market
price, but rather on the actual cost
of the wheat. '
"Two general statements covering
these charges of the grand jury
wouia oe:
"1. That .the Pacific Coast Grain
company sold to the United States
Grain corporation, at the government
basic price, 65 per cent of all the hard
and 40 per cent of all the soft wheat,
bought by the grain corporation,
amounting in all to 1,300.000 bush
els and it is hard to reconcile this
with the charges made that Mr.
Houser and his grain company antici
pated a material advance in price.
"2. That Mr. Houser's personal
wealth and credit were not used to
anything likj their full extent, proved
by his having financed in 1916-1917
31,000,000 bushels of wheats
Aid of Congress Sought to
Keep Production Going.
REMEDY IS ' SUGGESTED
Interstate Commerce . Committee
Would Allow Iiines .15 ..Years
Instead of 5 to Pay Debt.
WASHINGTON, May 13 Congress
was asked today to help the railroads
overcome the freight congestion so
as to keep production needed to put
down the cost of living going full
tilt.
As a means of enabling the roads
to provide equipment, shortage of
which is said to be largely responsible
for failure to move mountains oi
freight piled high at the principal
gateways in the east and middle
west, tha senate interstate commerce
committee) approved an amendment to
the transportation act under which
the railroads would be given 16 years
instead of five to pay back advances
under the $300,000,000 revolving fund.
Railroad officials said this would
help, but they pointed out that the
immediate trouble called for heroic
measures to relieve congestion and
that the carriers, for instance,, re
quired 226,000 care to reach normal.
Most Itoada Swamped.
While most of the roads -were
swamped with freight at Junction
points and big gateways. American
Railway association officials said a
perceptible improvement was shown
by reports received from all sections.
Complaints still came from shippers,
however, and the car service commit
tee or the association, which directs
the car movement, endeavored to al
locate equipment to sections and in
dustries in greatest need.
There was no embargo on the move
ment of coal, livestock and perish
ables and these commodities had a
preferential rating and right-of-way
next to passenger train service, which
thus far has not been affected. Gov
ernment agencies in touch with the
transportation system put forth every
effort to help relieve the situation,
admittedly bad. but not quoted so bad
as a week or 10 days ago.
Demands for coal were general.
This was kept moving, while orders
were issued for the quick dispatch of
cars to the northwest for shipment
of grain and refrigerator cars for
California and Florida to take care oX
perishables.
South Only Section Free.
The south seemed to be the only
section free of congestion, the roads
reporting a steady flow of south
bound freight, with the north-bound
movement regulated at eastern and
western gateways by the ability of
connecting roads to accept it. At the
Potomac yards here the southern
gateway used by all lines in and out
of Washington officials reported that
2.500,000 cars were handled. The
movement north and south was about
equally divided, but the northward
flow was stopped suddenly at mid
night last night by an embargo on
all except the three favored commod
ities. Freight officials said they
rpped to sae daylight ahead by the
middle of next week.
Particular attention "was given to
the New .England situation because
of reports that the tie-up was gen
eral and that the number of cars
waiting to be movd now exceeds
30,000. Swamped as they are at some
points, officials, said it was natural
to expect confusion, especially with
a shortage of labor, which has ser
iously retarded work at junctions.
MR, HOUSER. XOT SURPRISED'
Xews Receive in San Francisco
by Grain Ofiicial.
SAX FRANCISCO. May 13. Max H.
Houser, second vice-president of the
United States grain corporation, re
ceived news tonlgnt that charges that
he had used his office to manipulate
grain prices had not been sustained
with the statement that he had never
"entertained a shadow of a doubt as
to the outcome of the investigation if
the true facts ware uncovered."
"Those base insinuations against
me were conceived In an ignorance
and a bigotry beyond understanding,"
he declared.
"It is significant that !t was I who
asked for the Inquiry. Mr. Mayo made
a very thorough and searching inves
tigation and his report speaks for
itself. I have always felt the truth
would prevail."
Mr. Houser added that "the price of
flour in the Pacific northwest to the
housewife Is lower than in any other
section of the United States," and that
"this can be verified by reference to
market figures."
IFUEL INQUIRY IS ASKED
Chinese Boycott Extends.
HONOLULU, T. H., May 13. (Spe
cial.) The local- Chinese merchants'
boycott of all Japanese goods has be
come as extensive in Hawaii as in
China, according to the son of the
president of the, Chinese Merchants'
association here. The Japanese mer
chants are feeling the strain, espe
cially since the Japanese plantation
laborers' strike has reduced their in
come from their own people.
Senator
Cummins Moves for In-
formation on Xary Equipment.
WASHINGTON. May 13. An in
quiry by the senate naval committee
to determine whether American naval
and merchant vessels now equipped; to
burn, oil fuel will have to return to
the use of coal because of the oil
situation and whether In that event
it would not be well for the govern
ment to acquire suitable coal stocks
to guarantee the fuel supply is pro
posed in a resolution introduced today.
Senator Cummins, republican of
Iowa, is the author.
FOWNE
NAME IN EVERY PAIR
"They keep their
good looks" is
what people say
of our
SILK
M APE TNI U. S A
gloves . . a worth
while superiority
that always makes
friends of our
GLOVES
FOR MEN, WOMEN & CHILDREN
r' you look back over the
past few years of style
history you will find that
there has always been an
Earl & Wilson Collar lead- -ing
the changes for Ameri
can men.
Collars
EARL. 6f WILSON TROY, N.Y..
EXTRA
EXTRA
EXTRA
EXTRA
EXTRA
Great
Sale
4000 Pairs of '
Well-Known Makes
of W omens Fine
Silk
Gloves
5()c
1-3 Regular Price
Grejat Mid-Season Underpricing of Women's
Stylish Stout Suits
Dresses and Coats Our En
tire Stock Selling Friday at
Vs
Off
SUITS
From $45 np to $85
COATS
From $37.50 up to $85
ALL AT ONE-THIRD LESS
DRESSES
From $27 np to $75
A saring too positive and too jrreat to miss! A sale that prudent women wiTl not fail to
profit by. Those who appreciate materials of the better sort styles of distinctive character
especially designed to conform large or stout figures to fashionable lines and tailoring that
compares with the finest of custom work, will be interested in this sale.
THE SUITS
Come in several fashion
able models in belted and
novelty lines especially de
signed for stout figures.
Made of fine navy serges and
in sizes to 50.
- THE COATS
Are of fine quality serges,
tricotines, duvetyne and other
popular materials in black,
navy and reindeer. All are
finely tailored garments, in
sizes 42Ya to 50.
THE DRESSES
Include the season's most
favored styles in fine taf
fetas, crepe de chine and silk
metaor, in navy, black, Copen
hagen, taupe, etc. All sizes
from 42 'a to 52.
AH are on sale at One-Third Less Than Regular Price and a Perfect Fit Is Guaranteed.
It's a Great "Clean-Up" of Odds and Ends and
Broken Lines, Bargain Friday, in
Women's and Pnv-m n-nT-ol
children's vjarmentsi
Everyday necessities 700 of them, to be exact and my, what sav
ings! The assortment to us is not complete, because we have only a
few garments of this style and a few of that, and we must needs concen
trate our stocks to proper form. Therefore, Mrs. Consumer, the savings
to you at this sale are immense!
Many of the garments in the following list worth double the price
you pay Friday 75c:
1. Dainty Corset Covers in lace and embroidery trimmed styles.
2. Drawers, open style, embroidery trimmed, medium or extra sizes.
3. Camisoles, of good quality silk and poplin, in many styles.
4. Smart Bloomers in batiste and silk mull; generous size.
5. Large Bib Aprons of heavy scout percale; trimmed with ric-rac.
6. Small Sateen Sales Aprons, best grade, fast black and well made.
7. Children's Dresses of fine ginghams, this season's styles, 2 to 6 years.
8. Toddlers' Play Suits of devonshire, ginghams, poplins; 1, 2 and 3 yrs.
9. Kiddies' Overalls, all colors, in twills, chambrays, galatea; 2-6 yrs.
10. Girls' Bloomers, of sateen and twill, pink, white and black.
11. Children's Straw Hats, entire stock to be closed out; worth doable.
12. Women's Petticoats, fine muslin, embroidery-trimmed, limited
quantity.
13. Brassieres, embroidery or cluny lace trimmed. Sizes S6 to 50.
14. Infants' and Children's Heavy Outing Gertrudes and Waist Skirts.
15. Dresses for kiddies, slightly mussed, but splendid values.
16. Scores of other garments too numerous to mention.
Oh! Look!
See What
75
Will Buy
Friday
Section
NIAGARA MAID
AND
MILADY SILK
GLOVES
IN ALL SIZES
Just think of it! At this -out-of-the-ordinary
sale you can purchase
standard first quality Silk Gloves
.with double finger tips at One
Third Regular Selling Prices.
The reason is that we Were over
stocked on long Silk Gloves and, in
order to adjust this condition, we
had about 4000 pairs cut down to
the popular two and three-button
styles.
Colors are white, black, gray,
navy, brown, tan, Copen
hagen, champagne, mahog
any, etc. AH sizes in the as
sortment, but not all sizes in
each color.
This is without doubt the great
est bargain ever offered in this city
in fine heavy Milanese Silk Gloves.
It is a sale that no prudent woman
will miss. We advise that you
come early in order to secure first
choice, and to avoid the afternoon
crowds that are sure to be here.
Purchase as many pairs as you
wish as long as they last.
Bargain
Friday
Dont Fail to Profit by This
Sale of Silk Remnants
Friday's Sale Half Price
Hundreds of Them! Both Plain Colors and Novelties
Desirable lengths for waists, dresses, skirts, scarfs, etc. Included are Goetz Satins,
Stearns Messalines and -Satins taffetas, novelty and sport weaves; in fact, most any need
can be supplied if you attend this sale early. No phone orders, none sent C. O. D. or by mail.
EXTRA
Men's 4-in-Hand
Ties 65c
Two for $1.25
. An extensive -assortment of exceedingly pleasing patterns in
colorings to suit all. They come in plain colors neat stripes and
fancy patterns. They come with large open end fastened with bar
and with slip-easy band. YouH want to purchase a full year's
supply when you see what extraordinary values they are at the
above price.
50c
All Sorts of Desirable
Laces, Embroideries
In Friday's Sale at 1-3 to 1-2 Less Than Regular Selling Prices
A busy season in our Fancy Goods Section leaves us with quite an assortment of broken lots
and short bolts of dainty Laces and Embroideries all of desirable quality and patterns; in fact,
many of our best selling numbere all go on sale Friday at the above great price concession.
Be sure to secure your share. .
Embroideries at 35c Yard
Included are such wonderful values as 36
inch Colored Voile Flouncing, Wide Corset
Cover, Flouncing and Skirting Embroideries.
Also fine Baby Sets and well-finished edges.
Both domestic and imported embroideries in
swiss, cambric and longcloth. Come early for
best choice they are sure to sell rapidly.
Ha nd k ere h iefs
At 45c Dozen
Handkerchiefs for both wom
en and children of good size and
of fine lawn styles hemstitched
and with roll edge.
Laces at 39c Yard
Both Cot on and Silk Laces, such as imita
tion crochet, filet, cluny, beading top, camisole
laces wide bands 12 to 17-inch silk and silk
mixed flouncings 17 to 27-inch cotton net
flouncings, etc. Just such laces as most every
woman has need of for immediate use. All
sensationally underpriced for Friday's sale.
HAIR BOW RIBBONS
AT 37c YARD
Less than today's manufacturers cost. All staple colors
in plain and Moire Taffeta Ribbons, with plain or corded
edge. Fine 5-inch Ribbons that will make up into dainty
hair bows, sashes and for other purposes.
Pair
Positively none will be sold to
dealers no phone orders filled
none sent C. O. D. or exchanged.
No refunds. None fitted.
See Our Special Window Display.
Our Store
Now Opens
at 9 A. M.
The Most in Value The Best in Quality
Store Closes
at 5:30 P. M.
Saturdays
at 6 P. M.
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I'l'i
iilili
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