16
THE MORNIXG OREGONIAN, MONDAY, AUGUST 2, 1920
E
LOOPHOLE
IS WAY TO WEALTH
Portlanders Excited by Prof
its of Charles Ponzi.
BANKERS EXPLAIN PLAN
Money Orders Purchased Here and
.' Sent to Foreign Iand, Then
Returned Increase Capital.
the necessitv of the future. He went?
into the remarkable record of growth
of the dairy industry . in Denmark,
where a Tew years ago the annual
milk production of the cows of the
nation was but little more than 2000
pounds of milk each. The govern
ment, following a survey of the rural
situation through a commission that
bad been chosen, decided that the
dairy industry was one that ehoulld
be developed to the limit. . Accord
ingly, dairy sires of pure-bred breed
ing of the highest type were brought
into the country, and by breeding al
ways upward and upward today the
average milk production of milch cows
inenmark is 7000 pounds per cow.
O. O. Phelps of Dryad, Dr. E. C.
Truesdell of Centralis, Walter E. Ca
comber of Oakville, A. R. Badger who
is head of the St. Helens Incubator
company; J. P. Hurley, editor of the
Advocate; Dan W. Bush, John Bunker
of Eagleton, Chairman Robert Som
erville of the Lewis county board of
commissioners. County Agent A. T.
Flagg and George R. Walker, secre
tary of the Southwest Washington
Fair association, addressed the
breeders.
Donbt that Charles Ponzi, Italian
dishwasher, could have made the en
ormous sums credited to him through
' manipulation of the international
postal exchange system, is expressed
by Portland bank officials and em
ployes of the foreign exchange de
partments, although it is acknowl
edged that the international postal
agreement does open the way to mak
ing money at a fairly rapid rate.
That purchase of money orders
rather than stamp reply coupons
would furnish a. readier basis for the
manipulations of such an interna
tional exchange juggler, was the
opinion of the Portlanders. To say
that all the Portland financial world
is agog over the accounts of Ponzi's
transactions Is putting it mildly, and
in many a- Portland bank yesterday
employes were figuring how great
durns of money could be made be
tween now and October, when an in
ternational postal conference is to be
held, which, it is expected, will patch
up all the holes in the exchange sit
uation. IOOphole In Explained.
How anyone with a reliable agent
In one of the European countries
could make money out of the foreign
exchange situation was readily ex
plained by Walter H. Brown, head of
the foreign exchange department of
the Northwestern National bank, yes
terday. The agreement o! the inter
national postal union, Mr. Brown
pointed out, provides that money or
ders may be sold and cashed on a
certain stipulated fcasis. This basis
has remained the same throughout
11 these months when the value of
foreign exchange in the open market
has dwindled, and from all present
appearances the value will have to
remain the same until the matter can
be corrected at a meeting of repre
sentatives of the postal union in Oc
tober.
To illustrate, the stipulated rate of
settlement for all money orders from
or to Great Britain is J4.87 a pound
sterling. The present foreign ex
change rate, however, is in the neigh
borhood of 13.70. A Portland would-
be foreign exchange profiteer could
buy a draft at a local bank, payable
to a friend in England for one pound.
It would cost him about ?3.70, plus
a few cents bank exchange and post
age. His agent in England could
take the draft to a postoffice there
and obtain a money order for one
pound, payable to the original pur
chaser in Portland. Upon receipt of
this money order, the Portlander
could take the money order to the
postoffice and get $4.87 for it. Under
the present rates of exchange, the
profit would be in the neighborhood
of $1 a pound, after expenses were
deducted, or something like 25 per
cent profit on his capital for the
month that it would' take to carry on
the transaction. The thing could, of
course, work on as a n endless chain.
The only obstacle, apparently, lies in
the postal regulation that not over
T SLIP
WASHINGTON BAMAT SHOW
ISG REPUBLICAN" DRIFT.
SALVATION OFFICER
GETS POST liJ EAST
Colonel T. W. Scott to Take
. Chafge of Property.
ARMY AND JMAVY IN WORK
mon to his Hood River neighbors to- J
day, evidenced no shortage of gaso
line. The service was a union service of
all local denominations and Hood
River ministers occupied pulpit seats
with Mr. Sunday. The church audi
torium and Sunday school rooms, the
largest of the city, were filled, and
doors and windows were left open
that those outside might hear.
Motor visitors at the 'city automo
bile park heard that Mr. Sunday was
f n nrpflph anri vicitnrv fmm several
1 states emptied suitcases for their Sun
day best and joined the congregation.
Many automobile parties from neigh
boring Washington towns were here.
"Abide With Us, for the Evening
Time Approaches" was the text of
Mr. Sunday, who preached a sermon
on practical Christianity for every
day application.
Registered Voters Being Canvassed
and First 17 00 Cards Fore
shadow Result.
SPOKANE, Wash., Aug. 1 (Spe
cial.) Returns from the secret state
wide straw ballot being taken from
58,000 registered voters of the state
by the Spokesman-Review are coming
in. To equalize the postoffice burden
of handling the ballots they are still
being sent out in batches of 3000 and
4000 daily. More than 25,000 ballots
are yet to be sent. ,
Tabulation of results will not oe
made before all the post cards are
mailed from here because it has been
suggested that the publication of the
early voting, coming from scattered
parts of the state, will influence those
who vote later.
About 1700 ballots had been re
ceived here up to Saturday. An inter
esting compilation from these 1700
shows that there is a strong drift to
the republican standards. Of 889 who
said they voted for the republican
ticket in 1916 803 are still voting re
publican, 84 for democratic candi
dates, which means that the repub
lican party is holding about 90.5 per
cent of its 1916"voting strength. Of
the 371 who voted democratic in 1916,
161 have gone over to the republican
standard this year, which means that
the democrats are' holding only about
56.6 per cent of their 1916 strength.
These drifts compare almost identi
cally with those recently tabulated in
the Literary Digest's nation-wide
straw ballot.
Head of Department at Chicago
Also Will Be Overseer of Xaval
' and Military Relief.
After seven years' service as com
manding officer of the Northern Pa
cific province, comprising Oregon,
Washington and Idaho, Colonel T. W.
Scott of the Salvation Army will leave
the northwest on August 25, having
been ordered to Chicago to take
charge of the property department
and to be overseer of naval and mili
tary relief work. '
Colonel and Mrs. Scott have arrived
in Portland from Seattle headquar
ters for a brief stay prior to leavin
THREE DOT FOR SHERIFF
WASHINGTON PRIMARY RACE
SHADES OTHER CONTESTS.
Malt Starwicli, IS Years Deputy;
ex-Chief of Police Warren of
Seattle and R. T. Hodge Vie.
BRING IN YOUR FILMS 3IAIN FLOOR miwmm
SEATTLE. Aug. 1. (Special
Campaigns for the republican nomina
tions for sheriff and county auditor
have so far overshadowed all the
other county fie-hts or possible con
tests that they are likely to hold the
the province, and farewell exercises center of interest until the September
were held for them yesterday morn-
THEFT OF FUNDS CHARGED
Dairymen's Association Bookkeeper
Accused or Taking $175.
CHEHALIS, Wash., Aug. 1. (Spe
cial.) B. M. McLeod is under arrest
here charged with, having- embezzled
funds belonging to the Lewis-Pacific
Dairymen's association, for which con
cern he was bookkeeper until the mid
die of July. The specific charge
against McLeod is the misappropri
ation of $170 in cash and. a $50 liberty
bond.
Mr. McLeod is bonded for $5000 with
a casualty company and the associa
tion 'is protected. He is married. His
parents live in Chehalis. The warrant
for his arrest was issued late Saturday
but Deputy Sheriff "Winn was unable
to locate him. This morning McLeod
voluntarily surrendered at the sher
Ing, afternoon and evening at the Sal
vation Army hail, 128 First street.
Tomorrow noon Colonel Scott will be
the honor guest at luncheon at the
Portland hotel given by the advisory
committe of the Salvation Army, and
tomorrow night the final farewell
meeting will be held at the hall at
128 First street.
The public will be' invited to join
with Salvation Army members to bid
goodbye and give best wishes to the
departing officer.
Membership Is Increased.
Colonel Scott has been commander
in this province during its period of
greatest growjth and great credit has
been given to him for the progress
made. Under his direction, the mem
bership has been largely increased, all
of the corps have been put on a firm
foundation, mortgages have been
wiped out and more than half a mil
lion dollars has been spent in ac
quiring property for home-service
work.
Colonel Scott entered the Salvation
Army on April 19, 1SS4, at St. Cath
arines, Ontario, and has continued un
brokenly in the seVvice for 36 years.
Beginning as a cadet, he was pro
moted to adjutant, staff captain, ma
jor, brigadier, and finally provincial
officer of Maritime province, Canada,
and in 1896 he was transferred to the
United States.
primams are over.
There are a number of angles to
the sheriff fight that make the early
stage of the contest interesting. Both
Matt Starwlch and Robert Tait Hodge
have in the past laid claim to rural
and labor support. Starwich, who has
been a deputy in the sheriff's office
for 18 years, was once a fellow coun
try deputy of Hodges when the latter
was stationed at Black Diamond.
Hodge moved into town when he be
came sheriff, but Starwich maintains
his residence at Auburn.
Former Chief of Police Joel F. "War
ren got off to a flying start when
he first announced his candidacy, but
he now has settled down to steady
work, eliminating some of the spec
tacular features of the first stages
of his campaign. He is using air
planes, aerial bombs, paper drinking
cups and flags to get the attention
of the public.
O. M. Spear, chief deputy auditor,
carries the prestige of an official in
dorsement in his race for auditor,
while D. E. Ferguson, one of his two
active opponents, is making capital of
the fact that he left the office to give
himself greater freedom in handling
his campaign.
iff's ffi?e when he learned that hp
$100 can be sent in any one postal was wanted.
money order, but there is nothing tM
prevent one individual from obtaining
a large amount of $100 money orders.
Scheme Worked Here. I
The stamp return proposition, by
which Ponzi claims to have made his
enormous sums, could have been han
dled the same way, although there
would be more difficulties in doing
the work on a large scale than in
money orders, in the opinion of the
local foreign exchange experts.
"I think some such manipulations
have been going on in Portland in a
small way," said Mr. Brown. "And
so far as I have been able to find
out by talking with federal officials,
the postoffice has no way of stopping
it, at least 'not until the matter is
corrected by a conference of the in
ternational postal union. Banks have
been advising Portland clients who
have money coming to them from
Kurope to have it sent by money or
der rather than by draft, in some
instances. While it would appear
that the postoffice department would
be a big loser, I believe the matter
almost equalizes itself. Every time
a money order is purchased here to
b sent to Great Britain the post
office makes a dollar back, and it is
etrange how many people there are
who have gone on sending money
hy money orders, instead of taking
advantage of the exchange rates and
sending it by draft."
Huge Profit Doubted.
"I don't believe there is enough
stamp returns printed in Italy to en
able Ponzi to clean up $30,000,000 in
a comparatively short time," declared
T. M. Rogers, xf the foreign exchange
department of the First National
bank. "It is possible, however,, to
take advantage of the international
pcstal agreement to make money both
out of stamp returns and money or
ders. It doesn't seem possible, how
ever, that Ponzi could have manipu
lated as large sums as he claims he
did."
Ponzi, Rogers explained, is operat
ing largely between the United Sta.es
and Italy. The postal exchange is
$19.30 a 100 lire, while the present
rate of exchange on the open market
is about $5.50. Thus in every trans-
action between the two countries, ar
ranged through the money order or
postal return system, the money
could be more than trebled.
BREEDERS GIVE PICNIC
Lfcwis ror.Mv, wash., cub
iiolus ax.mal meet.
TRAVELING MEN TO PICNIC
Eugene Chamber to Be Host at Co-
burg Bridge August 14.
EUGENE. Or., Aug. 1. (Special.)
Traveling men from all over the state
are expected to attend a big picnic
to be given by the traveling men's
division of the Eugene chamber of
commerce at Coburg bridge Saturday,
August 14. Arrangements for the
picnic were discussed at .a meeting
of the division last night.
It is announced that a baseball
game and' other sports will be held
and a big basket dinner will be
served. The day's festivities will
close with a dance at night at the
chamber of commerce ballroom.
At the meeting last night C. P.
Mayhew resigned as secretary of the
division as he is to move to Ash
land to reside. Hay Glass was chosen
to serve in his place.
D'Olier to Visit Centralia.
CENTRALU, Wash., Aug 1. (Spe
cial.) Indications are that Centralia
will entertain a big crowd of legion
naires on August 10 and 11, when
Franklin D'Olier, national comman
der of the American Legion, makes a
pilgrimage to the graves of four for
mer service men who were victims of
I. "W. W. on November 11, last. Don
Abel, commander of the L. R. Fiscus
post in Chehalis, has assured Lloyd
Dysart, commander of the Grant
Hodge post here, that his organiza
tion will be represented by a delega
tion of at least 50. Hoquiam post
promises a big delegation.
Many Posts Are Held.
Since taking up duties in this coun
try "Colonel Scott has served as chief
divisional officer in the New Jersey
district; assistant national social sec
retary with headquarters in New
York; national industrial secretary.
New York; provincial officer with
headquarters In Kansas City; pro
vincial officer with headquarters in
Detroit; commander, of the Chicago
training college and chief of the divi
sion of men's and women's training
cuueges ana corps in Chicago, and
provisional officer of the Northern
Pacific province with headquarters in
Seattle.
Colonel Scott's marriage followed
a Salvation Army romance. He took
Captain Elizabeth Piercy as his bride
on June 9, 1890. Their three daugh
ters have been engaged in army work.
Colonel Scott's record in this
province is one of unusual achiev
ment. During the seven years of his
service, he has traveled 183,162 miles
visiting the different corps through
out the territory, has held 905 indoor
meetings, 694 outdoor meetings, 76
soldier meetings" and has personally
made 1829 conversions. The number
of corps in the district has been In
creased from 18 to 30, all mortgages
have been lifted, except those con
tracted on recent purchases of home
service property, and purchases of
property exceeding half a Skilllon dol
lars have been made. ,
Achievement Are Listed
The record of achievement in this
last regard during the past year alone
is as follows: Anacortes, new bar
racks $1200; Bremerton, new barracks
93500; Vancouver, barracks $30,000:
La Grande, barracks $4000; The Dalles.
barracks $4500; Spokane, property for
new central headquarters $40,000. cen
tral building now under construction
$llo,000; Boise, land for new build
ing iu,uuu; fortiana, land .lor new
building, corner Sixth and Ankeny
streets, $70,000, "White Shield home
$80,000; Seattle, site for young wom
en's home $18,000. site for central
building $58,000; Tacoma, site for new
central building $35,006.
Colonel and Mrs. Scott will leave
Tuesday evening following the fare
well meeting at the Salvation Army
hall and will return to Seattle, where
farewell meetings will be held prior
to their departure on August25 for
unicago.
Albany Homes in Great Demand.
ALBANY, Or., Aug. 1. (Special.)
mere never has been sych a demand
for houses in Albany as has existed
for the past few weeks. In many
cases where people renting had to
move because houses were sold they
had to buy in order to get a place to
reside. Whenever a moving man
leaves a house here now with the
last load of furniture another will
drive up with an incoming load.
Houses are rented long before they
are vacated. A new apartment house
is under construction here and though
the building is not yet completed all
of the apartments were leased
weeks ago.
Apple Growers Improve Storage.
HOOD RIVER. Or.. Aug. 1. (Spe
cial.) Crews are now engaged here
in reflooring storage plants of the
Apple Growers' association. Floors of
all stories of the plants will be sur
faced with the preparation. The new
flooring, it is said, will enable truck
men to handle a great many more
boxes of apples than over wooden or
concrete floors. The association
engaged in improvement work, the
chief of which is the flooring, that
will cost approximately $15,000.
Two Cities Fear Forest Fire.
HOQUIAM, Wash., Aug. 1. (Spe
cial.) A fire in the timber 'north
west of the electric park, and only a
short distance from the resort, was
spreading this morning. The blaze
is being watched closely by the fire
departments of both Hoquiam and
Aberdeen to prevent its spread into
the streets on the outskirts of the two
cities.
Parks Caravan to Visit Ashland.
ASHLAND, Or., Aug. 1. (Special.
A. L. Westgard of the Nationa
Automobile association, routing the
way for the national parks-to-parks
nignway caravan, which will com
through Oregon in September, was in
Ashland Friday. Preparations fo
entertaining the caravan here will b
made by the local chamber of com'
merce.in all probability.
St. Helens Rebekalis Install.
ST. HELENS. Or.,
KELSO GAINS 10 PER CENT
Kalama Has Large Increase but
Cowlitz County Gets Loss.
KELSO. Wash.. Aug. V (Special.)
The 1920 population of Kelso an
nounced yesterday by the census bu
reau is 2228, or an increase of ap
proximately 10 per cent over .1910.
Au i (SDe-lwhen the census was 2029. Kalama's
cial.) The St. Helens Rhk-h 13-u census is i8. which Is more
have elected "the following to serve '.Shan a S ?eJ cent increase over the
for the ensuing term: Lilla Crouse. ' ?urf, i 81,6 ln 'hc former census.
Many Farmers, Peiite Haying. At
tend; Prof. tieorgc S. Bulkley
Tells of Hope of Future.
CM KHALI S, Wash.. Auc. 1. (Spe
cial.) The annual picnic by the Lewis
County Pure Breeders' club was held
at Riverside park, west of Centralia.
yesterday. There was a. good attend
ance despite the fact that many farm
ers are unusually busy with hay harvesting.
At noon a fine picnic dinner was
served.
V. L. Bevinpton of the programme
committee introduced the speaker of
the day Professor deorge S. Bulkley
wno talked ror.. hair an hour on
"The Pure-bred, the Hope of the
Future."
Mr. Bulkloy not only pointed out
noble grand; Nellie Keith, vice-grand
Ora Bennett, secretary; Mary E.
Howell, treasurer; Addie Levi, chap
lain; Hazel Brittain, conductor; Grace
Howell. warden; Eliza Blakesley,
R. S. N. G. ; Iva Brown", L. S. N. G.;
Lora Pride, R. S. V. G.; Grace Roun-
tree, L. S. V. G.; Margaret Southard,
T. G. ; Raymond Price, O. G., and Ella
Smith, P. G. A large number of mem
bers were present at the installation
of the recently elected officers and a
banquet was served.
Bonds Held to Be Regular.
SALEM. Or.. Aug. 1. Special.)
Bonds voted for the municipal water
supply at North Powder were held to
be regular in an opinion given by Attorney-General
Brown today. The
opinion was asked by State Treas
urer Hoff. In commenting on the tran
script submitted for examination Mr.
Brown said the proceedings were com
plete in every particular and that an
attached certificate showed there had
been no litigation, nor was there any
contemplated. The bonds voted by
North Powder aggregate $30,00t.
Albany Road Complete Tuesday.
ALBANY, Or., Aug. 1. (Special.)
The work of paving the Pacific high
way between Albany and Jefferson
will bo completed Tuesday iwght. The
only part which will not be paved
now is a short distance on each side
of a point about two miles north of
Albany where a crossing under the
Southern Pacific main line track is to
be constructed and the Davinir will
t the breeders that the pure-bred not be laid until this part of the road
is not only the hope of the future, but 1 is constructed permanently.
w oocuana aiso snows a healthy in
crease from 384 in 1910 to 521 this
year. On the other hand Castle Rock's
population decreased from 998 to 839.
Cowlitz county was given a decrease
of 770, but this is thought to have
resulted from poor census taking in
some of the rural precincts.
MINISTER PAINTS STEEPLE
Pastor of Baptist Church Does Uood
Job for Methodists. .
ALBANY, .Or., Aug. 1. (Special.)
The pastor of the Baptist church
painting the steeple of the Methodist
church was a unique scene in Browns
ville recently.
Residents of that city say that the
Methodist church steeple needed
coat of paint, and the officers of the
ohurch were having difficulty in find
ing anyone to do the work, so Rev.
M. v S. Woodworth, pastor of the
Brownsville Baptist church, who has
had some experience as a painter.
volunteered to paint it. It is re
ported that he did a good job.
THRONGS HEAR SUNDAY
Autoists Liine Up for Six Blocks
From Several States.
HOOD RIVER. Or., Aug. 1. (Spe
cial.) Automobiles arriving by the
scores and lining up for 6 o'clock on
both sides of the street at the As
bury Methodist church, where Rev.
Billy Sunday delivered his annual ser-
Itebuilding School Planned.
CEMTRALOA, Wash., Aug. 1. (Spe
cial.) Plans have been started for
the rebuilding of the schol at Lind
berg, in eastern Lewis county, which
was , razed when fire destroyed th
town two years ago. Since that time
the pupils of the Lfndberg district
have been transported to Morton.
Good Morning!
Shop Early!
Giving Notice to All. Portland
That at 9:15 A. M. Today
We Launch the Great
The Home Cheerful
gjNE'S living quarters
should express com
fort, convenience and cheer
fulness and the greatest of
these is cheerfulness.
The genuine Oriental Rug
has an inimitable quality; of
deep restful tones, balanced
b) brilliant touches that har
monize ivith the quiet, neu
tral colors of the walk.
In our imported veavings
the mystery, the- atmosphere
and the art of the past join
hands with the decorative
needs of the present.
The most complete and
varied a s s o r t m ent of
Oriental Rugs in the
northwest is at your
service for decorative
suggestions.
CARTOZIAN BROS.
Established 1906.
Pittoek Block, Portland.
I
Jin ira Stored. Cleaned and
Repaired by Skilled
Crmftsmea,
August
Sales
Our 3-pag-e announcements in each of yesterday's papers told in part the story of
the wonderful values which these sales bring all over the store. We particularly
wish to emphasize two most remarkable occasions:
(1) August Sale of Furs
(2) Sale of Plush Coats
The First
Named
brings our entire fine stocks of new
1920 furs at substantial reductions
from our regular lower-than-else-where
prices. It not only extends
these special prices to purchasers in this August Sale
but enables them to take advantage of the savings
by making a reasonable deposit which will hold the
fur until October 1. In addition we will store free of
charge until October 1 all furs purchased in this
sale. Furs that were regularly priced $17.50 to $2000
are now $14 tor$1600.
The Second
Sale
which is an enlargement on the scope
of the Fur Sale brings 600 new fall
and winter coats of high quality
plush at special prices. This is an
original Meier & Frank sale planned to run contem
poraneously with the August Sale of Fui-s. Special
prices range from $33.55 for regular $39.50 plush
coats up to $114.75 for regular $135 plush coats.
Women who see these handsome garments will ap
preciate the advantages of purchasing now at the
August Sale prices.
In Addition to These Two Sales
Many other great events are on the August calendar, such as:
Great Silk Sale
which brings regular $2.50 to $4 printed foulard and
fancy plaid and striped taffetas, 35 inches wide, at
$1.79 yard (Second Floor). 33-inch imported Shan
tung pongee at 98c yard (Second Floor). 36-inch
bengaline of $2 quality at 98c yard (Second Floor).
Regular $3.50 and $4 printed georgette crepe of ex
cellent quality in many colors at $1.69 yard (Main
Floor).
August Sale of Corsets
also begins today. Standard makes, including Mme.
Irene, Nemo, Lyra and Frolaset. Some samples,
others discontinued numbers. Models to fit all fig
ures small, medium and large. Front lace and back
lace. Two extra special groups at S3. 45. regularly
$4 to $8, and at S6.45. regularly $8.50 to $20.
Also $4 and $5 Frolaset front lace and American
Lady corsets in the sale at S2.95 (Third Floor).
THE STORE FOR MEN
Offers a Splendid Group of
Young Men's Suits
Regular $35 to $45 Grades
A wonderful selection of suits in this lot for young men and for young fellows
about to don their first long-trouser suits.
Strictly up-to-date models. Excellent tailoring. These garments bear the impress
of fine craftsmanship.
Every color and combination with appeal for the youthful eye browns in dark
and medium shades, greens in light and dark shades, good-looking tans, serviceable
grays, olive shades and many others. Plain colors and fancy mixtures galore.
All sizes 32 to 42 included in the assortment.
$27.50 buys a mighty fine suit for a young man here today.
-Meier & Frank's: The Store for Men. Third Floor.
COME!
TODAY!
Store Opens
9:15 A.M.
Store Closes
5:45 P. M.
r j, 5:45 P.M. U
tmtTif jf Mr
Trie QuALiTf Stob of pontlamd
K . y
4
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