VOL. LIX NO. 18,G0G
Entered at Portland (Oregon)
Postofffcr as Second-Class Matter.
PORTLAND, OREGON, TUESDAY, JULY 13, 1920
PRICE FIVE CENTS
E IS FACED
TtaTtI s7fore!coal ultimatum
debs to steer party I IflPflRJcqr PRfQqrq
IN CELL IF NOT FREED ""'"' uT mLGGLG
MR. HARDING SEEKS
LIGHT ON PROBLEMS
CREW'S REFUSAL TO
WASH HOLDS LINER
PRICE CONSPIRACY
LAID TO COMBINE
BY
EMBRYO PARTY
SENT TO GERMAN
MIXED MARRIAGES
LAKCK DRYGOODS STORE AT
Kl'GCXE DESTROYED.
SENATOR " CONFERS WITH
LEADERS AND EXPERTS.
SOOIAXrIST NOMINEE TO RUN
SUMMER CAMPAIGN".
DETENTION INVOLVES 1543
PASSENGERS IN STEERAGE.
F
I
Labor Sends Ultimatum
to Committee of 48.
DECISION TODAY IS DEMANDED
Either Joint or Individual
Platform Next Step.
FUSION IS HELD REMOTE
Few Delegates Relieve Differences
Will lie Adjusted Convention
Adjourns for Night.
CHICAGO. July IT. Amalgamation
of the liibor party and committee of
4S in a new party movement was
threatened with failure tonight when
the labor group adopted an ultimatum
giving until 10 A. M. Tuesday for the
forty-eighters to show a disposition
to compromise.
The ultimatum was proposed by
Max S. Hay his national chairman of
the labor party.
The convention decided to proceed
tomorrow to adopt a platform and
nominate candidates if amalgamation
f a i ! s.
The ultimatum carried after an
hour's debate, in which the 48 leaders
were criticised as "plutocratic philan
thropists trying to use the labor party
as a catspaw."
Joint Session PrupoHrd.
Labor delegates proposed that. If a
compromise could be reached, the two
parties hold a joint session Tuesday
r.ipht to adopt a platform and nomi
nate candidates.
Delegates were skeptical that the
Ket-together movement would succeed,
but efforts of the more radical to
force an immediate break were dis
couraged by the moro conservative.
During the argument Dudley Field
Malone, ex-democratic leader and col
lector of the port of New York, ar
rived as a representative of the com
mittee of 4 8.
Committee Adjonrna for Day.
Malone, who Is a member of the
labor party, attempted to placate the
delegates, grown restive over the
prospect that the convention, might
last into Thursday or longer. He de
clared there were no unsurmountable
difficulties in the way of amalgama
tion. The committee adjourned until to
morrow after adopting the utimatum.
The convention adjourned at 10:20
P. M. to meet tomorrow morning.
Robert M. Buck said the"real men"
in the forty-eight convention were the
farmers and advocated adoption of
the name "farmer-labor" to bring the
farm group of forty-eighters into the
labor movement.
"Slick l aivjfru" Criticised.
Abraham Lefkowitz of New York
declared the labor group was no
match for the "slick lawyers" in the
forty-eight convention and that if
conferences continued the forty
eighters -would come off victorious.
A statement from the conference
room indicated tension was high, and
that the committee of 4S representa
tives objected to the term "demo
cratic operation" as applied to gov
ernment ownership of railroads, for
which both stand; there' were also
differences over the name for the
new party, labor men demanding the
inclusion of the definite word "labor."
Kach member of the labor party
platform committee was armed with
three platform drafts, each contain
ing an Irish freedom plank, to which
the committee of 48 delegates were
said to object.
48 Convention Hrara Oratory.
The 48 convention listened to ora
tory, with no action until just before
the close when representatives of the
American constitutional party, the
American party of Texas, which has
not previously participated in the ac
tivities, eingle taxers, world war vet
erans' association and rank and file
veterans' organizations marched into
the hall.
The league of nations issue was
mentioned before the committee of 48
convention for the first time when it
reconvened tonight. Oscar Maddaux,
introduced to speak on world federa
tion, asserted President Wilson "had
run counter to every American in
stinct" by the ' league structure he
created and the manner in which he
presented it. "Nevertheless." Mad
daux continued, "he made an issue
which cannot be evaded, on which
there can be no pussy-footing. It Is
something about which the people are
thinking."
Both Assertions Applauded!
The convention applauded both the
criticism of the president's attitude
and the declaration that the league
was an issue to be met.
"All the horrible nightmare of war
will stare us in the face again if we
do not meet the issue," Maddaux pro
ceeded. "Are we not ready for a
change?"
In answer to a question by a New
W York delegate, Mr. Maddaux said: "I
would reject tne league of nations
with or without reservations."
An indication that the conference
committee was by no means ready to
report was had when J. H. Hopkins,
chairman of the national convention.
Rlaae Proves Hard One to Fight,
Firemen Working an Hour Be
fore Extinguishing It.
EUGENE, Or., July 12. (Special.)
Fire that started at 1:30 o'clock .this
afternoon completely ruined the large
drygoods store of F. E. Dunn, pio
neer merchant of this city. The two
story brick building which the store
occupied was also badly damaged and
probably will have to be rebuilt.
The fire started in the furnace
I room in the rear of the main sales-'!
room. Some trash in the furnace was
set afire to get rid of it and soon
afterward the rear portion of the
building was ablaze. Firemen, with
seven streams of water playing on
the building, worked an hour before
they succeeded in extinguishing it.
The blaze reached the upper story,
which Is divided into apartments and
office rooms, and, getting a foothold
between th'e ceiling and roof, burned
fiercely.
Mr. Dunn carried a stock of goods
valued at $50,000. according to his
estimates, and says that only about
a third of his loss is covered by in
surance. The building is owned by
his sisters, Mrs. Edna Digglcs of
Berkeley, Cal., and Miss Amy Dunn
of Eugene. The loss on the building
is estimated at $20,000 and is said to
be covered by insurance.
Dr. Anna Maurer, osteopath, was
the only occupant of the second
floor. Her loss exceeds $2000, with
no insurance.
Hardly had the Dunn blaze been
extinguished when fire broke out in
the operating room of the Oregon
theater, directly across the street.
The entire building was enveloped in
smoke, but the blaze was soon ex
tinguished. Herbert Leonard, the
motion picture operator, was over
come by the fumes of burning films
and smoke and it was with consid
erable difficulty that he was resusci
tated, rhysieians say he will recover
Reply to Allied Demand
Must Be Made Today.
MONTHLY DELIVERIES FIXED
Payment of 2,000,000 Tons
Each 30 Days Asked. .
TENSE POINT IS REACHED
Republican Candidate Also Re
plies to Cox Announcement as
to "Real Dirt Farmer."
SALESMAN PLEADS GUILTY
Confesses in Court Tlmt He Has
Two Wives; Sent to Prison.
NORTH PLATTE. Neb., July 12.
Merle ft. Inskeep, local automobile
salesman, today pleaded guilty in
the district court to having a wife
in North Platte and one in Monroe,
Mich., and to having had his plans
to wed a Salt Lake City woman
frustrated by being arrested at the
latter place last week on a charge
of bigamy.
Inskeep also admitted outside of
court that he had proposed to a young
woman of Cheyenne, Wyo., and gained
her acceptance after his marriage to
wife No. 2, who was formerly Miss
Fern Wilson of this place.
Inskeep was taken to the Nebraska
penitentiary tonight to serve a sen
tence of from one to seven years.
L0ND0N-T0KI0 PACT ON
Britain Tells League Alliance Will
Continue Another Year.
LONDON, July .13. Great Britain
and Japan have notified the league
of nations that they have prolonged
their treaty alliance for a year, ac
cording to the Daily Mail, at the same
time pointing out that the treaty
terms are in accord with the prin
ciples of the league.
The reason for the prolongation of
the treaty according to the Mail,
tnat tireat .Britain nas not had an
opportunity to consult with the do
minions regarding a revision of the
treaty, which is necessitated by the
elimination of German influence in
tne lar east.
Conference so Far Is Not Able to
Agree Either on Reparations
or Fuel Controversy.
SPA, Belgium. July 12. (By the
Associated Press.) The allies served
an ultimatum on the German delega
tion to the conference here late today
that the Germans must agree by 3
P. M. tomorrow to deliver to the
allies 2,000,000 tons of coal monthly.
Otherwise, the Germans were in
formed, the allies will take measures
to enforce the terms of the treaty.
Thus negotiations with the Germans
have reached another tense point. The
spirit of conciliation adopted has pre
vented a break but the allies found
It was necessary to issue this utima
tum carrying out of the treaty which
would entitle them to more coal than
now is demanded.
Arguments Lnst Three Honrs.
The question of coal was the sub
ject of controversy during a three
hour session.
The allies began by insisting on a
monthly delivery of -.200,000 tons.
The Germans offered L100.000 and
he allies reduced their demand to
000,000.
Dr. Simons represented that coal
eing the foundation oi tne inuus-
rial life of Germany every ton Ger
many sent to the allies meant tha
much less production.
The premiers, after prolonged dis
ussion, informed the Germans that
he allies must have their answer
omorrow.
Communique Is Issued
Today's communique said:
"The heads of the allied delegations
met Chancellor Fehrenbach and Dr.
Simons this afternoon and conferred
hour on the coal and reparations
uestions. It was decided that the
members of the reparations commis-
lon should meet delegates appointed
the allied governments, together
with the German delegation and ex
erts with a view to definng the de-
ails and exact scope of the German
plan.
This mixed commission will begin
its meetings tomorrow in order to
ubmit a report to the conference
with the least possible delay.
Grrm Delegates Get Text.
'The text of the coal protocol,
drafted yesterday by the experts' dis-
ussion, was communicated to the
German delegates. Proposals regard
ing the monthly tonnage of coal de
liveries were exchanged without re
sult, and it was decided that in these
it
WILL CONTEST EXPECTED
Burton, Wash., Physician Leaves
Most of Property to Sister.
VANCOUVER. Wash., July 12.
(Special.) The will of Dr. R. N. Gor
don, who died at Burton, Wash.,
few days ago, will be contested.
was reponea loaay. ine will was
filed for probate by Dr. Gordon's sis
ter. Florence G. Hunton.
ine estate is valued at approxi
mateiy tmu.uoo in real and persona
property. In his will Dr. Gordon lef
half of his farm to his wife and half
to nis sister. ah tne remainder o
the estate is left to the sister, in ad
dition to his interest in communit
property.
COX LANDSLIDE SURPRISE
Another Ballot Probably Would
Have Nominated Davis.
CHARLESTON, W. Va., July 12.
Plans had been made to turn the tid
in the democratic national conven
tion in favor of John W. Davis, am
bassador to Great Britain, on the 45th
ballot had Governor Cox failed to be
nominated on the 44th, Governor Corn
well declared today.
"No one was more surprised ove
the sudden Cox landslide on the 44th
ballot than the Cox managers them
selves," he said. "They were hoping
that he might eventually be nomi
nated, of course, but they had no idea
it was coming so suddenly."
'MARION, O., July 12. Senator
Harding today conferred with repub
lican and progressive leaders and
agricultural experts with whom he
discussed labor, transportation, eco
nomic and social problems. He also
replied to the announcement of Gov
ernor Cox, the democratic nominee,
that if elected, a "real dirt farmer"
would be appointed secretary of agri
culture. The senator said if the republican
policies of "practical usefulness" un
der which that department was creat
ed had been carried forward by the
present administration "half our
problems of high cost of living would
have been solved in advance."
The principal conference was with
Raymond Robins of Chicago, and
W. F. Brown of Toledo O.. prominent
as progressives in the 1912 campaign.
with whom he discussed labor and
economic problems especially. Later
Mr. Robins announced that the con
ference had been "very satisfactory.
Matters involving the part the pro
gressives would take, he said, were
also discussed.
On the fundamentals surrounding
the general economic ' situation, Mr.
Robins said he and the senator were
in "substantial agreement."
Mr. Robins said he had communi
cated with several labor leaders to
earn their views on the republican
ticket, but most of them wished to
read the senator's speech of accept
ance before committing themselves,
although some had already done so.
He announced, however, he would
support the senator.
While this was understood to have
been the first extended conference at
which the senator had discussed the
labor situation at length, it was un
derstood tonight that other similar
conferences might be expected. Sen
ator Harding is understood to be in
close touch with labor leaders recog
nized as being of the more conserva
tive stripe and he is expected to seek
their views before discussing the
labor problem in his speech.
Senator Harding, when told that
Governor Clement of Vermont had
declined to call a special session of
the legislature to consider woman
suffrage, refused comment except to
say "I had hoped that he would."
In his statement on a secretary oi
agriculture. Senator Harding said he
waa gratified to know of the ac
knowledgment "of at least one mis
take of the democratic administra
tion."
"I note," he added, "that the demo
cratic candidate announces, as one of
the first reforms he has in mind, the
appointment of a 'real dirt' farmer
as secretary of agriculture. That is a
reform the republican party docs not
need to adopt. For 16 years we had
a real farmer from a real farm as
secretary of agriculture "Uncle Jim'
Wilson of Iowa, who made the de
partment the greatest of its sort. He
ran it for the farmers.
"When the democrats came into
power they brought a university
president as secretary, and after him
a publisher. The democratic, party
certainly needs to be reformed in
this regard. The republican party
certainly does not.
"It is gratifying to see this early
recognition of at least one mistake
of the democratic adminstratton, and
purpose to correct it by returning to
200 Will Call on Wilson aud Ap
peal lor Leader's Release
and Pardon.
DETROIT, July 12.- Unless he is
pardoned. Eugene V. Debs, presiden
tial nominee of the socialist party,
will direct the party's campaign this
summer from Atlanta federal prison,
where he is cerving a sentence for
violation of tbe espionage laws, the
socialist national committee decided
today.
The committee decided first, how
ever, to make an appeal to President
Wilson :or Debs' release. About 200
socialists plan to call on the presi
dent soon and urge him to act on the
request made by a similar committee
to Secretary Tumulty.
ENSIGNS TO FACE TRIAL
Court Martial to Sift Charge of
Storing Intoxicants.
NEW YORK, July 12. Ensigns W.
H. Cushing and Frank Lamb were
placed on trial before court martial
t the New York navy yard today
charged with violating an order of
Secretary Daniels, forbidding storing
of intoxicants on naval craft.
The defendants were officers in
charge of aeroplane No. 3606, on
which "suspicious looking" brown
bottles were alleged to have been
stored before the flight from Bimini
islands, Bahamas, to Miami, Fla.
EMPRESS' DEATH SUDDEN
Eugenic Appears Glad to Die In
Spain, Native Country.
MADRID, July 11. Ex-Empress
Eugenie of France, who died here this
morning, was ill only a few hours
before her death. She was excep
tionally well Saturday morning. At
midday she lunched heartily, eating
chicken and some ham.
Empress Eugenie seemed conscious
that death was approaching and those
who stood by the bedside say she
appeared glad to die in Spain, her n
tive country.
ALIENS AIDED IN ESCAPE
Ellis Island Employes Assist Inimi
grants to Enter Country.
NEW YORK, July 12. Ellis Island
officers investigating escapes of
aliens from the island hospital said
today evidence had been gathered to
show several unidentified employe
have assisted immigrants to ente
the country unlawfully.
Approximately 40 immigrants hav
escaped within the last three months
according to Byron H. Uhl, assistan
immigration commissioner.
(Concluded on Pa?e 3, Column 1.)
(Concluded on Page
Column 4.)
GIRLS, 11 AND 6, BURGLARS
Two of Youngest Offenders on
Record Arraigned In New York
NEW YORK, July 12. Two of th
youngest girl burglars on record ap
peared in police court in Brookly
today when two, sisters, aged 11 and
6, pleaded guilty to a charge of ju
venile delinquency.
They were arrested in a Brooklyn
home after they were alleged to have
forced an entry and packed 1000
worth of silverware and jewelry in a
suitcase.
One Solution for Coast,
Opinion of Oriental.
RANCHER CHAMPIONS RACE
otato King Denies Holdings
at Klamath Falls.
MENACE IS CALLED FALSE
Owner of Large. Tracts Estimates
2 1,00 0 Nipponese Farmers in
California ; Liked by Bankers.
Delay to Cretic Costs W hite Star I
Line $20,000 Day; Action j
at Naples Causes Trouble.
BOSTON. July 12. The White Star
liner Cretic has been held at quaran
tine since Friday because the crew
refused to be washed. The deten
tion involves 1343 steerage passen
gers and is costing the company
about $20,000 a day. Finst-class pas
sengers were allowed to land with
out bathing.
The trouble grew out of the fact
that port authorities at Naples re
cently refused to allow American
health officials to examine emigrants.
As a result, no clean bill of health
could be given the Cretic here.
Report on Milk Charges
Given to Government.
FEDERAL PROBE POSSIBLE
Mayor and District Attorney
Confer Over Measures.
MARSHALL KNOWS RIGHTS
His
BUT A BIG PART OF THE DEMOCRATIC PARTY HASNT SAID SO YET.
1
XtvHrVt S THt. pArVvYe.V. VMUtH COX?
CO 11
RIOTS REDUCING PRICES
(Coaciuded oa Page
Column 3. J
Germans Storm Stores and Boycott
Dealers to Cut Costs.
WASHINGTON. July 12. Consumers
in Germany practically are boycotting
dealers in many commodities.
Food riots have resulted in forcing
down food prices, said a dispatch to
day to the state department from the
American commissioner at Berlin.
I ft i i it
t . W ANHOSftYS SO? t
SAX FRANCISCO July 12. Amer-
can pleas for closer restriction of
Japanese immigration and Japanese
opinion in favor of intermarriage be
tween Americans and Japanese were
brought before the immigration and
naturalization committee of the house
of representatives at its first hear-
ng today on Pacific coast immigra
tion questions.
Senator James D. Phelan of Cal
ifornia waa the proponent of more
drastic immigration laws, while John
P. Irish of Berkeley, a landowner of
the San Joaquin river delta, oposed
further immigration, but urged "de
cency and justice" for the Japanese
already here. George Shlma, presi
dent of the Japanese Association of
America and known as the "potato
king" of California, told the commit
tee he believed intermarriage was a
feasible thing.
There may be objections now, but
hundred years from now we will
look back upon it as all right." he
said. "When potato seed, in Califor
nia Is no longer good we bring in
Oregon seed, and the second year
after it is acclimated there is a fine
crop of poatoes.
American Girls KxpensWe.
to be sure, a good many Japa
nese don t make enough money to
support Yankee girls. They are too
expensive, he added.
Shlma said he saw how from
racial point of view there was an
tipathy between Americans and Jap
anese in California, but did not be
lieve it was very great in an economic
sense.
onima told the committee that he
once owned 5300 acres of land in Cali
lornia but later sold 3300 of it. His
own work consisted merely of super-
lntenoing operations on his potato
ranches, he said, with 38 or 40 Ameri
cans under him. The Americans
farmed barley for him but not pota
toes, he stated.
it 1 let Americans farm potatoes.
I wouldn t get enough for the taxes,
he explained.
Oregon Holdings Denied.
In reply to Kepresentati ve Raker
of California, he said he had no con
nection with any vegetable produc
tion of marketing outside of potatoes
and denied owning land near Klam
ath Falls, Or. He and a San Fran
cisco commission merchant owned i
tract on the Deschutes river in Ore
gon where they raised seed potatoes
he said, there being no law in Oregon
against ownership of land by ineligi-
ble aliens.
Shima described himself as a rcsl
dent of California lor 30 years who
had been back to Japan only once
Methodist, and, as president of the
Japanese Association of America, an
opponent of the establishment of
Buddhist temples in this country and
of drinking and gambling among Jap
anese.
"How was it you came to be deco
rated on your only visit back to
Japan?" Chairman Albert Johnson
asked. "Was it because you were
the. leading Japanese business man
and farmer in this country?"
Teacher Boosts Him. -
"Oh, no," replied Shima. "I don't
know myself. But tho Japanese pa
pers said it was because my old
school teacher, who was later the
emperor's teacher, kept boosting for
me all tho time."
Shima and K. A. Kanzaki, secretary
of the Japanese Association of Amer
ica, both said the organization had
not concerned Itself with immigration
questions except to take a census of
Japanese in this country last year by
means of a questionnaire showing the
date and circumstances of arrival of
each immigrant.
The testimony of Colonel John P.
Irish was largely a detailed reply to
Duty to Ioaf When Senate
Does; Will Till December.
SAN DIEGO, Cal.. July 12. Vice
President Thomas R. Marshall, who
is at Coronado for a stay which he
says may last three weeks, made it
plain today that he intended to have
a good rest.
"According to the constitution of
the United States." said the vice-
president to a reporter, "my duties as
vice-president are, first, to preside
over the senate when it is in session;
second, to loaf the rest of the time,
and I fully intend to exercise my pre
rogative with respect to the second
duty until .next December."
CR0KER HELD COMPETENT
Cx-Chief of Tammany Win Annul
ment of Son's Injunction.
WEST PALM BEACH. Fla.. July 12.
Richard Croker, ex-chief of Tam
many hall, was adjudged mentally
competent to handle his affairs in an
order issued today by Judge E. B.
Donell, dissolving a temporary In
junction granted last March to How
ard Croker, son of the ex-New York
democratic leader.
The son had sought to have his
father and stepmother, Buela A. Cro
ker, barred from disposing of the el
der Croker'a property, estimated to be
valued at nearly 11,000.000.
"LOSSES" IN QUESTION
THREE CITIES MAKE GAINS
Stamford, Conn., Has Increase of
9918 or 39.6 Per Cent.
WASHINGTON. July 12. Census
figures announced today were:
Guthrie, Okla., 11,757, increase 103
or .9 per cent.
Stamford, Conn., 35,486, increase
9948, or 39.6 per cent.
Norristown, Pa., 32,319. increase
4444, or 15.9 per cent.
MOTHER OF 22 SUCCUMBS
Latest Childbirth Proves Fatal for
Columbus, O., Woman.
COLUMBUS. O., July 12. The
mother of 22 children, including six
pairs of twins and one set of quad
ruplets, Mrs. 'ilary Durington, 39, died
today following childbirth.
Only five of her 22 children survive.
INDEX OF TODAY'S NEWS
The Weather.
YESTERDAY'S Maximum temperature,
58 degrees; minimum. &6 degrees.
TODAY'S Probably showers; westerly
winds.
Foreign.
Free city of Danzig ruled by British as
their own port. Pate 3.
Coal ultimatum served on Germany by
allies. Pace 1.
American relief commissions flee as J3oI
sheviki drive back Poles. Page 3.
British effort to govern Ireland failure,
says Sir Edward Carson. Page 6.
Domestic.
Illinois scores point in trial of millionaire
communist. Pag 3.
House committee starts investigation of
Japanese on coast. Page 1.
Crooked gambling layout found in Elwell's
home. Page 4.
Debs will direct socialist campaign in his
cell unless pardoned. Page I.
Labor party sends ultimatum to committee
of 4S on amalgamation plan. Page 1.
Mr. Harding seeks light on verious prob
lems now facing country. Page 1.
No state to be considered hopeless, says
Mr. Cox's running mate. Page
Liner held up by refusal of crew to be
washed. Page 1.
Chicago police find love letters written by
Carl Wanderer to girl. Page 2.
Governors of Vermont and Florida refuse
to call extra sessions of legislatures to
ratify suffrage. Page 4.
Pacific Northwest.
Burning lot of refuse results in $70,000
fire in Eugene. Page 1.
Sports.
Coast lesgue race develops Into pretty con
test for leadership. Page 12.
Portland may be awarded 1921 golf tour
ney or Pacific northwest association.
Page 12.
the points made by Senator Phelan in i R'n Pu,s "imP ln P'"' "S "Teson state
. - . . ..: ,w . .i. tennis tourney. Page i
BUPlluii wi iuo nose 1 lulls iimt Ilia
Japanese were a menace to California
and likely to dominate the state economically.
Propaganda Charged.
Senator Phelan referred to letters
which he said had come into his pos
session from sources he declined to
disclose. Indicating that Colonel Irish
Commercial and Marine.
1 Wenatehee and Keystone ate assigned to
Admiral line. i-age u.
Wheat trading on local board will be on
government grades. Page IS.
Bulge in Chicago corn market fails to
hold. Page IS.
Specialties and industrials lower in stock
market. Page 13.
Commerce expert tells local men need for
S. marine. Page 13.
was in the employ of Japanese pro- Portland and Vicinity,
pagandists. Another letter was one . six are hurt when auto stage goes over
he said was written by the Japanese; 100-foot embankment on Terwiliiger
commending him for not initiating
anti-Japanese legislation, but the
authenticity of which had been denied
by both parties.
Colonel Irish declared the Stephens
letter was a "plant" to find out if
Senator Phelan was conducting a
system of espionage to get hold of
the Japanese association correspon
dence. According to Colonel Irish
the letter was merely stenographic
iConciuded oa Pue ii, Coiumn 3-
boulevard. Page -'O.
Cherries
fruits benefited. Page 11.
War unrest blamed by wif in divorce suit.
Page 10.
Oregon teachers favor plan of reorganizing
national association, whereby large cities
cease to dominate. Page 9.
Conspiracy to divert milk to boost prices
charged in report which is turned over
to government. Page 1.
Vale takes blame for stealing auto.
Page 7.
Senator McNary tells of Harding's popu
larity in east. Page 4.
Five thousand dollars apportioned for
bridge survey. Page 10.
City Investigator Cannot Vnder
stand Why Milk Is Diverted
ITnlcss to Boost Prices.
The report of the investigation of
Lionel Mackay, deputy city attorney,
into Portland milk. prices was yester
day given by Mayor Baker to F. W.
Humphreys, United States district at
torney, who will, if tho facts warrant,
take the case before the federal grand
jury.
After careful perusal of the report,
the mayor, on finding that the Oregon
Co-operative Dairymen's league is
charged with diverting milk from the
Portland market in order to keep
prices to the consumer and distributor
as high as possible, laid all facta be
fore Mr. Humphreys, who has ar
ranged for a conference with Mr.
Mackay for 9 o'clock this morning.
Alma Katts Takes Kxeeptloa.
Alma D. Katz, president of the Ore
gon Dairymen's Co-operative league,
yesterday took emphatic exception to
the report of Mackay, declaring that
the league "welcomes any investiga
tion by any authority that is suffi
ciently disinterested to learn and be
governed in conclusions by facts on
both sides of the issue." Mr. Katz
drew attention to the fact that he
had not seen a copy of the report
and that, therefore, "it is difficult to
believe that Mackay or any other
investigator should be so inconceiv
ably limited in facts as to charge
dairymen with receiving an increase
in price, which Increase has been
levied by distributors and is now
being collected by them from con
sumers and for themselves exclusive
ly." Mr. Katz also asserted that he and
other officials of the league had of
fered Mr. Mackay all information
possessed by the league as to cost of
production, and that the deputy city
attorney had not availed himself of
the offer, but rather had chosen to
ask for only one thing the compara
tive cost of mill feed for July 1 this
year and for July 1 a year ago.
Mr. Mackay embodied as part of hia
report a letter written by "C. Doug
las Tyler, secretary," of the Oregon
Dairymen's Co-operative league to J.
C. Martinazzl, former league member
and mi'ik producer of Tualatin, Or.,
which explains that "at this season
of the year nearly every dairyman has
more cows giving milk than at other
seasons and it is also a fact that
nearly all cows give more milk at this
season of the year. The result of thia
is that the milk pours into Portland
in tremendous quantities and if we
allow this extra milk to run loose on
the market the price would be broken
very quickly."
Milks. Declared Diverted.
It is then pointed out by Mr. Mac
kay that it is not tho league's policy
to let supply and demand govern the
price of milk, but instead, rather than
lower the price to Portland consum
ers, the milk is d'verted at a loss in
order that the league may maintain
its price.
Commenting on the serious dis
crepancy in price which exists be
tween that milk sold by the league to
condenseries and that sold to Port
land distributors, Mr. Mackay in his
report says tha 40 per cent of Ore
gon produced milk i3 manufactured
into butter; that for this milk the
producer receives $2.68 a hundred
weight, and then asks if milk sold to
butter producing concerns is disposed
of at a loss.
"It must be," says the Investigator,
"it the producer loses money on that
sold for $3.20 a hundredweight."
About 207.000 pounds of milk are
daily sold to the condenseries. ac
cording to the report, at $2.80 a hun
dredweight. This milk, argues Mr.
Mackay, must be sold at a great loss
It that sold to Portland consumers
for $3.20 is sold at a loss.
Mr. Price Is Questioned.
Mr. Mackay's answer to statements
of league officals that it is impos
sible for the organization to sell to
the consumer at the same price as to
the condenser says:
"If the league can sell to the but
ter factory for $2.68 a 100 pounds
and to the condenser for 12. SO, why
does it have to raise the price to the
Portland distributors from $3.20 to
$3.80? Why deprive the babies of
Portland of the food most needed by
them? How many laboring men with
several chldren in the family can buy
for those children the milk their little
bodies require at the price of 16 cents
a quart?"
There are shipped into Portland
daily, he declares, several thousand
more gallons of milk than the market
requires at the "prevailing price,"
and the higher the purchasing price
the lower the buying power of the.
people, regardless of the needs of the
people, and the league rather than
place this surplus upon the markst
tConcluded oa 1'ss Comma 1.)