THE MORXIXG OREGOXIAX, TUESDAY, AUGUST 10, 1920 3 SPECIAL SPHERES IN ASIA OPPOSED U. S. Would Aid China in De velopment of Industry. JAPAN ASKS RESERVATIONS Political Status Desired Inconsist ent With. Integrity and Inde pendence of China. This is the second of a series of four articles to appear in The Oregonian on "The New Consortium for China." It is the story of how the governments of the United States, Great Britain, France and Japan, working together through national banking groups, have planned to do away with the old selfish policy of special spheres of influence in China. BY THOMAS W. LAMONT. The American banking group hav ing: been thus successfully formed, the American government was encour aged to take its next step. In October, 1918, the United States government proposed to the governments of Great Britain, France and Japan that in each of these countries they should encour age and support banking groups in the formation of a new consortium for the purpose, as already stated, of assisting China in the development of her great, public enterprises. The United States government pro posed that the new consortium should have a wider scope than the old con sortium had possessed; that it should be in the nature of a free and full partnership among the banking groups named; that not only future options that might be granted but concessions already held by individual banking groups on which substantial progress had not been made, should, so far as feasible, be pooled with the con sortium; that working on these two principles, the operations of the con sortium would serve to prevent for the future the setting up of special spheres of influence on the continent of Asia. The united States govern ment laid great stress on this latter point as being highly effective in doing away with international jealousies and in helping to preserve the in tegrity and independence of China, These proposals also made clear that it was not to be the aim of the consortium to concern itself with gen eral enterprises in banking, industry or commerce. Rather it was to in clude within Its scope only those basic enterprises, such, for instance, as the development of transportation sys tems, highways, reorganization of the currency, etc., which would serve to establish sounder economic conditions throughout China and thus form firmer foundation for the encourage ment of private initiative and trade. Specifically, it was planned that the consortium's operations should deal primarily with loans to the Chinese republic, or the provinces of the republic, or loans guaranteed by the republic or by its provinces and, in each instance, of character sufficiently important to warrant a public issue; thus effectively avoiding the curtail ment of private initiative and enter prise in China. In pan Iu.iiHt on Reservations. These proposals as formulated by the United States government were duly approved by the other three gov ernments, and at their instance the respective banking groups that had been formed in each of the four coun tries directed their representatives to meet for organization purposes at Paris in May, 1919. These represen tatives duly convened, and, it may be added, as in the case of the American banking group, in each instance they represented a much larger banking group than In the old consortium. I have already pointed out that in America the group had been expanded from 4 to 36. The Japanese group had been increased to 18 members, and both the British and French groups had also been enlarged. At the organization conference in Paris entire harmony of spirit and purpose was attained among all four groups, and the consortium was duly organized: its agreement, however, as unanimously adopted, to be subject to the approval of the respective gov ernments. In the case of Great Britain, France and the United States this agreement was approved without change. The Japanese government, however, dis tinctly qualified its assent by directing its banking group to declare that cer tain portions of the provinces of Man churia and Mongolia should be re served irom tne scope of the con sortium. These reservations as to Mongolia and Manchuria were clearly inadmis sible to the western banking groups, as being opposed to the idea of a free and full partnership. They were. It appeared, equally inadmissible to the governments of the United States, Great Britain and France, as tending to establish a political status for Ja pan not consistent with the integrity ana inaepenaence or enma. These qualifications were in effect a negation of John Hay's policy of the "open door" in China. It was not that the western banking groups had any particular plans for developing the provinces In question, nor were they especially desirous of making in vestments there, but they must de cline to be understood as assenting to be excluded irom tnose provinces Lamentable Relay Seen. in the succeeding months, among the four governments involved,, the United States taking the lead in the matter, there followed a long dip loniatic correspondence, with the idea f securing Japan s recession from her position. Little or no headway was made on this point and the longer It remained open the gerater the danger became in two directions. The chief one of these was the lamentable delay in the formation the consortium itself. China sorely needed effective assistance and the western banking groups were being Mocked from rendering it. Secondarily the three western governments seemed to feel strongly the impropriety or permitting Japan to continue in her insistence upon a claim which might later on be interpreted into a declaration by Japan of some especial political status in the provinces of Manchuria and Mongolia, This difficulty on the reservations still existing, I was requested by the American banking group, with the approval of the British and French banking groups and also with the ap proval of the state department at Washington, to visit Japan and find out definitely whether the Japanese banking group intended to enter the consortium on the same terms as the other banking groups. Japan Withdraws Reservations. I was in Japan throughout the month of Marcn last and then again upon my return in May from China, before sailing for home, I spent a week. at Tokio. As a. result of a better un derstanding Japan withdrew her res ervations in toto and the Japanese government authorized its banking group to enter the consortium without qualification. Throughout the nego tiations the governments and the banking groups were equally active and worked together with the single end in view of forming effective co operation . for the aid of China. Japan's change of attitude was. of course, most gratifying, and it served to make clear several interstlng points as to the present financial and political situation in Japan. J found from the start that the members of SELLING QUITS ilSSI Charles C. Hindman Named to Fill Vacancy. CITY WORK DONE BEFORE Mayor Baker Declares Appointee Well Qualified to Handle Problems of Port. Resignation of Ben Selling as a member of the commission of public docks and the appointment of Charles C. Hindman, well-known attorney, to fill the vacancy were announced yes terday by Mayor Baker. Although Mr. Selling sent his letter NEW MEMBER OF COMMISSION OF PUBLIC DOCKS NAMED. f ' f- s 1 l k I- A , (t , ' - I " M ' , i ' k v - M Charles C. Hindman. Ben Selling, retiring commissioner the Japanese banking group, which comprised 18 of the leading institu tions in the country and a great ma jority of the leading men of affairs in Japan, were strongly for the con sortium and greatly desirous that Japan should become a member of it without reservations. Early in my visit, too, the government, with Pre mier Hara at its head, stated to me its conviction as to the wisdom of withdrawing the reservations. Through the instrumentality of our ambassa dor, Roland S. Morris, who occupies In Japan a position of extraordinary strength andMnfluence. I was brought in touch with all the leading members of the cabinet and of the powerful diplomatic advisory council, who gave me private assurances of their adherence to the American formula of the consortium. But there was another element' ir Japan which for the moment strongly opposed participation by Japan with out reservations. That was described to me by certain Japanese as the so called military party. That element clung tenaciously to its determination to have the record show some special claim for Japan in the provinces of Manchuria and JVlon crolla. Its final withdrawal from this position was due, I believe, to the i man joint influence brought to bear upon it first, from its commercial and banking interests at home and sec ond, by the consistent and unyielding attitude on the part of the American, British and French governments. which throughout my long and diffi cult negotiations in Japan acted prac- I found on certain points there was tically as a unit in the whole matter. It is only fair to say that in japan sincere misunderstanding, which hap pily was dispelled by our discussions in Tokio. We mad) it clear that tne i i of resignation to Mayor Baker several days ago, the announcement of his re tirement was withheld until the major had determined upon the appointment of his successor. The necessity of giving more time to his business and personal affairs was given by Mr. Selling as his reason for his resignation. Mr. Selling had been a member of the dock commis sion since November 23, 1910, when it was created. Swan Island Project Opposed A few days ag"o Mr. Selling ex pressed himself as opposed to the Swan island project and it was be lieved in some circles' that this dis approval led to nis resignation. The resignation did not touch this ques tion. Mr.- Hindman is a practicing attor ney and also secretary of the DuBois Lumber company. Prior to law practice Mr. Hindman served as assistant city attorney and handled much business which gave him an opportunity to study Port land's needs as a port and a future commercial and industrial center. I Because of the information thus gained Mayor Baker named Mr. Hind- as a member of the committee of 15. On this committee Mr. Hind man offered numerous constructive suggestions, some of which were em bodied in the report which was made to Mayor Baker and the city council. KleCtion Nomination Won. At the last primary election Mr. Hindman was elected as a republican nominee for representative in the lower house of the legislature. Mr. Hindman also served as a dep uty in the United States district at torneys office and later as a deputy American, British and French banking erouDS had no intentions with respect to Manchuria and Mongolia that would seive to threaten the economic se curity or national safety of Japan. Further, we were able to specify cer tain feeder, or branch line, railway projects in south Manchuria, upon which substantial progress had al ready been made by the Japanese, and which, therefore, in accordance with the original understanding reached at Paris, should fall outside the scope of the consortium. Japan showed broad-mindedness and wisdom in waiving her reservations regarding Manchuria and Mongolia. She was courageous in recognizing that those reservations were of no real value to her and, if persisted in. would only serve as an inevitable bar to her entering the partnership with the western nations a partnership calculated to prove of more benefit to Japan s commercial interests than to those of any other nation: tTo Be Continued Tomorrow.) FIRE TRUCK FPU NEED AKRIAIj apparatus fcd has be ex depleted. in the district attorney's office. "It is with extreme regret that I am forced to accept the resignation of Mr. Selling as a member of the commis sion of public docks," said Mayor Baker last night. "In appointing his successor I sought a man who was not handicapped with any affiliations that might interfere with the work. I sought someone who was progressive. someone who has given the needs ot Portland as a port some careful study. Hindman Declared Right Man. "Mr. Hindman, in my opinion, is the man with these qualifications. Dur ing his service with the city I had an opportunity to observe his work, which was always exceptionally well handled. His retirement from the city's service came when his ambitions necessitated his stepping from the narrow confines of municipal work. His experience gained in the service of the government, state and city will serve him well in his new capacity." Other members of the dock commis sion are C. B. Moores, John H. Bur gard, A. H. Averill and C. K. Knapp. JOYFUL EATING Unless your food is digested without the af ter math of painful acidity, the joy is taken out of both 'eating and living. QS are wonderful in their help to the stomach troubled with over-acidity. Pleas ant to take relief prompt and definite. MADE BY SCOTT BOWNE MAKERS OF SCOTT'S EMULSION Department Appropriation TTsed and Commissioner Bigelow Against Deficit. A portion of the money appropri ated for the purchase of an aerial fire truck has been transferred to other funds in the fire bureau and spent in the repair of fire equipment, ac cording to City Commissioner Bige low yesterday. A check is now being made to determine how much re mains in the truck fund and also the balance .in the other funds. According: to Commissioner Bigelow the aerial truck, which is sorely needed in Portland, as was demon strated in the lack of long ladders at the Elton court fire Saturday, will be ordered as quickly as the money for such apparatus can be assured. "I decided not to order the truck because of the shortage of city funds." explained Commissioner Bigelow. "Last year the fire bureau concluded its work with a deficit of several thousand dollars, and 1 was deter mined that before I ordered the truck. sufficient money should be on hand to carry the department through the present year. "The fire bureau has been ' ex tremely unfortunate in accidents which wrecked fire equipment. Re pair costs have exceeded the amount set aside to care for maintenance. However, it is possible that balances are available in some of the funds in the fire bureau which can be used for the truck fund. If not, I will re quest the council to aid me in trans ferrins money from other funds to the fire bureau fund." 600 BUYERS REGISTER (Continued From First Fa ge. ) in.fr Milk quickly renews the energy that youth's excess of spirits or the day's work burns out. Milk has been termed "liquid meat" because much energy is derived from meat. It has been proven that milk is richer in some valuable elements than ( meat, and is more readily as- similated. Keep your body in good repair by the generous use of milk. Increase your store of energy . through the regular, continu ous use of milk. 9 a i vzzzzz Bsc ".' i ous use of milk. zp: sj When you are heat-fagged 'W , i there's nothing more tonic in effect than a cool drink (Tli. jifa&Tr of milk, sipped slowly. Reinhart. W. S. Babson, H. E. Judge and W. H. Monroe. Mr. Bale acted as chairman, intro ducing Mayor Baker, who delivered an address of welcome. Solos by Mrs. Robert Corruccini and Edward H. Moshowsky made up the musical pro gramme. Fred A. Brainerd was ac companist. Oregon-made refresh ments were served later. 1 Registration will continue today, the headquarters being open from S A. M. to 8 P. M., and several hundred more are expected to sign up. The big event tonight and one of the fea tures of the week will be the "high Jinks" at the Portland Chamber of Commerce rooms. The event will be a smoker and a programme of music and entertainment is planned. The committee in charge is composed of Paul De Haas. J. F. Furlong Jr., S. Mason Ehrman, C. M. Egbert, H. A. Green, J. L. Louisson, Monte Mayer, E. W. Johnson, E. C. Ward, L. C. Garrigus Jr., W. A. McDonald, A. W. Ellis. Herbert Katz, J. H. MacKenzie, C. H. Hill and T. S. Townsend. While the men are enjoying the smoker the women will be the guests of women of Portland at a theater party. The women have been asked to meet at the headquarters, rirst floor of the Oregon building, tonight at 7:30 o'clock. The women's recep tion committee is composed of Mrs. W. F. Norman. Mrs. W. D. McWaters, Mrs. R. M. Irvine, Mrs. T. S. Town send. Mrs. J. D. Kenworthy, Mrs. W. K. Slater, Mrs. P. F. Jones, Mrs. W. J. Ball and Mrs. Willis Fisher. On Wednesday an aviation luncheon at noon and a vaudeville and window trimmers' contest in the evening will be the features, while on Thursday the visitors will be taken for a trip on the river. The main event of Fri dav will be the annual buyers' week dinner at the Portland Chamber of Commerce, and on Saturday automo bile trips over the city and highway will be arranged for all who desire to take advantage of them. REFINERS D01HS UTMOST BUREAU OF MIXES HOLDS EF FORTS ARE PUSHED. by their wives and families and are making the trip a combination of business and pleasure, the serious side of buyers week, is not being over looked, and virtually thousands of orders are expected to be placed with the Portland jobbers and manufac turers during the week. The Portland participants in the event, including about 150 local firms, are uniting in the offeryf round-trip railroad fare to every buyer who pur chases $500 worth or more of goods during the week. This offer holds good, as one of the executive com mittee declared yesterday, if the buy er comes from Independence, Kan. from Alaska or from the other side of the world. Social festivities of buyers' week opened last night with a reception at the Portland Chamber of Commerce for the visitors. The event was in charge of a committee composed of A. J. Bale. C. F. Wright, George H. Butterfield, J. R. Krause, E. J. Fail ing. G. J. Armstrong. Theodore Berg ma nn, "W. B. Peacock, W. A- Ross, D. J. Zan. P. Feldman, M. S. Pommers, A. Buyers Attention! WOXBERFdi DISPLAY Fall Millinery We Invite Voor Inspection of Our Line ELSIE TRIMMED HAT CO. WHOLESALE MILLINERY Second Floor Artisans' Bldic X. W. Cor. Broadway and Oak Stm. Patterns Modeled From 10 A M. to P. M. RED ROUT IS REPORTED General Wransel Telegraphs of Success of Offensive. PARIS, Aug. 9. General Baron Wrangel, the anti-bolshevik com mander in south Russia has tele graphed the Russian embassy in Paris under date of August 6. that the second attempt of the bolshevik to stop development of his offensive "ended in complete disaster lor them." Summer Test of Fuel Shows That Deeper Cut Is Being Made in Crude Oil to Meet Demand. WASHINGTON. Aug. 9. Evidence that refiners have been putting forth their utmost efforts to keep up with the increasing demand for motor gas oline, even reducing the quality to add to the quantity, is disclosed In the summer test of motor fuel just com pleted by the bureau of mines. The report, after noting the tremendous increase in demand, continues: "To obtain sufficient gasoline, it has evidently been neoessary for re finers to cut deeper into the crude oil. adding somewhat to the amount of high boiling material marketed as motor gasoline." The bureau places domestic con sumption increase for the first five months of 1920 at 20 per cent over last year. The 1919 total consump tion for a like period was 1.217,879. 649 barrels against 1.418,534,063 in 1920, an increase of 290,664.414 barrels. Semi-annual motor gasoline surveys were ordered because of the tenden cy of refiners to sell gasoline of a bet ter grade with less high boiling material in winter than in summer. The winter test was made in January. The summer test was conducted late in July and the report says that "the results apparently show that there has been a greater decrease in the volatility of motor gasoline than can be accounted for as the normal change from winter to summer qual ity." The average boiling point for the summer test this year was found to be 2 1 7 degrees against 265 degrees in April of last year and 264 degrees last January. The report stated that "at least two samples show evidence of being adulterated with kerosene and that four others showed "careless refining if not actual adulteration. As among cities1, the tests indicated that San Francisco was getting the best summer gasoline with an aver age boiling point -of 270 degrees, while Salt Lake city's tested 286. Elks Frolic Tonight. Portland Elks' lodge 142. will give a dance and swim-frolic at Winde muth this evening. Dancing will be CIWE FOR SHOW CASES ADDING MACHINES POOL TABLES MEAT SLICERS SILVERWARE GAS AND STEEL RANGES STOCK KETTLES SINKS AND CANOPIES VIENNA CHAIRS COFFEE URNS NATIONAL CASH REGISTERS TYPEWRITERS SAFES CROCKERY FLOOR SCALES STEAM TABLES STEAM COOKERS TABLES WALL CASES ELECTRIC COFFEE MILL ART GLASS 2 ROOT BEER BARRELS ADDRESSOGRAPH MACHINES TYPEWRITERS CHECK PROTECTORS Hoclif eld Bros. 43 FST ST. PHONE BDWY. 184 Buyers' Guide and Reference Directory of Wholesalers ManufacturersJobbers c'nn LAST TIMES TODAY DOUGLAS MacLEAN and DORIS MAY Let's B Fashionable i the NEW SHOW TOMORROW UVW A comedy VftsVA "ipe, rare variety M ETHEL CLAYTON fin "THE LADDER i OF-LIES" LEAH Va WPlf LEASKA W if I Soprano Vy f, KEATES Atb ORGAN ; ?imi ikiiijjwi mm ii u m in. i wmmammm m n i n mi imi n nun mm . ---- - ' - . gin at 9 P. M-. but those who come early for a swim will see many thrill ing sights. Boats will leave every few minutes from the foot of Morrison street and from Windemuth. landing on the east eide. -BUYERS' WEEK AUGUST 9 TO 14- H O B A R T BOSWORTH -IN- "BELOW THE SURFACE A daring theme treated in a daring manner. Remarkable under-water scenes. "MONKEY BUSINESS" A COMEDY CHESTER OUTING PATHE REVIEW NOW BATHING SCITS. HOSIKRT, SWEATERS. JANTZETf KNITTING MILl-S. Eut 20th and Sandy blvd. East 7378. BEAR CAT TJfiOINO AND SPOBTS- MK' BOOTS. C-W SHOE MANUFACTURING CO.. 251 N. letn st. Broaaway 3U19. CEREALS. GOITDETN' BOD MILLING CO., S33 U&K St. uroaawajr sou. CRACKER AND CAKE MFCRS. INDEPENDENT CRACKER CO.. 430 East Davis St. East 1948. CREAMERY PRODCCTS, BUTTER. EGGS. lllhrr.. ruti.TKi, i,tj- u f. : i-. u CO., Front and Ankeny ats. Broadway 507. DRUGS. CLARKE, WOODWARD DRUG CO.. Aider at West Park St. Marshall 4.700. HARDWARE AND STOVES WHOLESALE. StAY HARDWARE CO.. 124 and 12B Front su Main 152. HOME AND OFFICE CHAIRS. WEBSTER MANUFACTURING CO.. 16th and Thurman sts. Broadway 1212. HOUSEHOLD GOODS AND STOVES WHOLESALE. HEXTER & CO.. 13th and Hoyt sts. Broadway "1104. LACNDRT SOAP. LUCKEU KING & CAKE SOAP CO., 640-600 Hood St. Main 779. LEATHER SHOE FINDINGS. SHOE STOKE SI "PPI.IKS. SHOE MACHINERY. THE BRETMAN LEATHER CO.. N. E. Cor. Second and Oak. Main 71 OS. MANUFACTURERS OF TRUNKS. SUIT CASES, TELESCOPES. ETC. MULTNOMAH TRUNK A BAG CO.. S, Water K. Automatic S2-16S. MANUFACTURERS OF OFFICE. LI BRARY AND DINING TABLES, AND CEDAR CHESTS. OREGON TABLE CO, Lewis and Lorlng; sts. East 0652. , NECKWEAR AND SUSPENDERS. ADRIAN NECKWEAR CO.. 603-605 Worcester bids. Main 2S5S. NOTIONS, HOSIERY AND KNIT GOODS. MILLER. CALHOUN, JOHNSON CO, Firth and Couch. Broadway 263. OFFICE FURNITURE AND SUPPLIES. "EVERYTHING FOR THE OFFICE." KILHAM STATIONERY A PRINTING CO. Fifth and Oak sts. Marshall 6080. OUTING SUITS FOR MEN AND WOMEN. WATERPROOF GARMENT CO.. North 5th t. Broadway 839. PAINTS. OILS AND GLASS. RASMUSSEN & CO.. N. E. Cor. Second & Taylor. Main 1771. PICKLES, VINEGAR, ETC. KNIGHT PACKING CO.. East 0th and East Alder. East 60, 21-568. RUBBER FOOTWEAR. DRUGGIST SUN DRIES, CLOTHING, MECHANICAL GOODS AND TIRES. CNITETD STATES RUBBER CO., 6th and Giisan sts. Broadway 760. WHOLESALE DAIRY PRODUCTS. MUTUAL CREAMERY CO.. East 7th and Everett sts. East 6S00. WHOLESALE GROCERS. T. W. JENKINS 4 CO.. Front and Pine sts. Mala 601. WILLOW FURNITURE AND BASKETS. WILLOWCRAFT FURNITURE CO., Central bids. Main 378o. WINDOW SHADES. COLUMBIA AWNING 4c SHADE CO, lt8 Second 1U Main 2848. WOMENS AND MIS8KS SUITS, COATS. WAISTS, DRESSES. WEIN STEIN BROS., 2&3 Morgan, bids. Marshall 5727. .. B I L L I E BURKE IN "AWAY GOES PRUDENCE" A laugh some frolic. THEN- -THERE'S "TRAILED BY THREE". The red-blooded American story of thrills and action. TODAY AND ALL WEEK I M HTHIirill II lllll I III I FIT ill 1 1 nf II 'l Ii hi .ill, I HMIHHW " HWWlilll I