VOT, TJX 0 18 717 Entered at Portland rO-eso-tO
PORTLAND, OREGON, FRIDAY, NOVEMBER 19, 1920
26 PAGES.
PRICE FIVE CENTS
NEW ORLEANS GIVES
HARDING BIG OVATION
SLAYER'S PAL
T
SPLIT-UP CAPITAL
PLAN CAUSES PANIC
TURKEY MARKET OPEN
WITH 45-CENT OFFER
BOY BANDIT BURNS
YEON TO BE URGED
53,000,000 WASTE
TO TAKE ROAD JOB
F
HELD
OF LOOT
C1TV STRIVES TO SHOW A IX
WASHXXGTOX SCARED BY SEN
ATOR KEXXOX'S PROPOSAL.
O.NLY FEW BIRDS RECEIVED
AT ROSEBCRG, HOWEVER.
GOVERNOR TO RENEW HIS RE
PARTISANSHIP IS PAST.
QUEST FOR SERVICE.
HARD NC
UNDER
ACTONAL
STRAIN
800
N MONTH CHARGED
Choice of Cabinet to
Free of Pressure.
Be
MAJORITY VANTAGE UNIQUE
Landslide So Great President
Owes No Favors.
TOLLS ACT EXPECTED
Trip to Panamfc Is Linked With
Intention, to t'rgc Prompt
Action on Measure.
BY MARK SULLIVAN.
(Copyright by the New York Kvenlnic Post,
Inc. Published by Arrangement.)
WASHINGTON. D. C. Nov. 19.
(Special.) Senator Harding Is on the
sea. bound for Panama. lie said he
was giving no thought to cabinet ap
pointments. A good many politicians at home,
however, are acting as if the cabinet
appointments were already made.
They coujd not be more energetic if
it were known that Senator Harding
Is going to hand out his completed
list when he gets off the boat on his
return home, December 4.
But there was better evidence that
what Senator Harding said about the
state of his own mind was a simple
statement of fact. And it could read
ily turn out that the energy of those
who seek cabinet appointments, and
of their friends, may be a handicap
rather than a help.
A man who goes into the White
House with such an emphatic com
mission as Senator Harding enjoys,
backed by the authority of so huge
a popular majority, has no need to
placate minor or local leaders, and
is not in a position to be the victim
of pressure.
Most Aspirants Less Fit.
So far as that goes, men of the
caliber to fit a big cabinet do Bot
urge themselves and do not allow
their friends to urge them. Most of
the seeking is done by those who are
less likely.
A careful compiler has listed 70
names that have been "mentioned'
for the ten cabinet positions. Fully
65 of these names represent the ( -.i.e3
of local party leaders who have re
ceived a friendly boost by their home
newspapers on the ground of local pa
triotsm, or minor leaders to whom a
friendly newspaper man can pry
harmless courtesy without doing any
specific injury to ve.acity by saying
they are cabinet "possibilities."
Mr. Hrrding, in selecting his cab'
inct, is n a position unique among
recent presidents. His majority was
so large and his leadership is so se
cure that he does not need to make
cabinet appointments on the basis of
securing the co-operation of factions
whose opposition might embarrass
him, which, for example, it is fair to
assume was the motive President
Wilson had in making Bryan secre
tary of state.
"Geotrraphical" Worries Ended.
Neither does a president, whose
franchise from the public is so all
embraclog that includes unprecedent
ed majorities in every state except
ten and who even in the south ob-
lican ever had, need to take into se
rious account the factor, universally
taken for granted, of "geographical
considerations."
Senator Harding said also that he
' was giving no thought to politics.
And the evidence of those around him
was that this also was a simple and
accurate expression of his state of
mind. Many assumed that Senator
Harding chose Panama as the objec
tive of his recreation trip because in
his campaign he laid so much empha
sis on the exemption of American
coastwise ships from tolls in the canal
and wants to familiarize himself with
conditions there preparatory to a
prompt, energetic urging of that
measure as one at the first acts of
his presidency.
Toll Act Action Foreseen.
The fact was that in Senator Hard
ing's mind Panama Is a place to go
on a sea trip for a recreation, and
Iurfiama as a subject of policy had
little except an accidental relation to
each other. Nevertheless. It can be
counted on with confidence tfe&t the
Panama tolls act will be very much
to the front as soon as Mr. Harding
becomes president.
It will be to the front, partly be-
rtyse the new president's heart willj
be in it, and partly because it will be
a subject as to which some strong
leaders of his party differ with him.
The Panama tolls act as it affect
our foreign relations and American
history, both recent and past, proves
that as a provocative of excited" po
litical discussion an issue dealing
with foreign affairs takes precedence
over everything else.
There La much to say, and much
will be said, asto just why President
Wilson persuaded the senate in 1914
to take steps as it is now proposed
to repeat, and to withdraw the ex
emption from tolls which American
."hips then enjoyed, why the subject
lapsed from 1914 to 1920, why It was
resurrected In the republican plat
form last June and what individuals
were responsible for that resurrec
ICuiiUiiUcl ua i-'age 5. CaIuuui
Sober Thinking and Abiding Faith
In U. S. Urged by President
Elcct, on Way to Panama.
NEW ORLEANS, La., Nov. 18.
Sober thinking and an abiding faith
in the republic during the .. critical
period of war reconstruction were
asked of the American people today
by President-elect Harding In an ad
dress here just before he sailed for a
three weeks' vacation voyage to the
canal zone.
Some reverses and disappointments,
he declared, must come as the after
math of the worM conflict, but he
predicted confidently that all of them
would pass away again if the people
only will "keep their heads" and hold
fast to the old-time virtues of thrift,
honesty and common sense.
Hinging through his address was a
predominating note of confidence and
unfaltering faith.
A confident America, buttressed by
resources never equaled before by
any people, and governed by a free,
representative governmnt, was the
ideal which he declared must be kept
In view. He said no one desired that
the old order should return, but he
maintained that in building for the
new order there must be no accep
tance of strange cure-alls and fancy
theories.
The address was' delivered at
luncheon of the New Orleans Associa
tion of Commerce, the central feature
of a programme of entertainment by
which the city sought to show the
president-elect that the partisanship
of the campaign already had been for
gotten. Great street crowds cheered Mr.
Harding everywhere during his short
stay and to a gathering of thousands
in front of the city hall he expressed
his gratitude for the hospitality
through the south.
Mr. Harding was the guest later at
an informal reception at the Elks'
home, where he was presented with a
gold watch, the gift of the local lodge.
His "little talk" promised the commit
teeof Elks developed into a 15-min-ute
address before a crowd of several
thousand gathered in front of the
home.
The president-elect was In New Or
leans about five hours. He arrived
shortly before 11 A. M. and went
aboard his steamer, the Parismina,
shortly after 4 P. M. ,Soon afterward
the Parismina started on the four-day
run to Cristobal.
Any possibility that the vessel
would touch at a Mexican port on her
way down, in response to an invita
tion extended to Mr. Harding by the
Mexican government. disappeared
when the steamship company notified
him that such a stop would carry the
Parismina three days out of her
course.
Besides Mrs. Harding and his sec
retary, the president-elect is accom
panied by a number of personal
friends, including Senators Hale of
Maine and Frelinghuysen of New
Jersey.
HIGHWAY OFFICE MUSEUM
Relics Taken From Big Eddy Soon
to Co to Historical Society.
THE DALLES. Or.. Nov. 18, (Spe
cial.) With excavation down to bed
rock nearly completed at Big Eddy,
it is planned to make one final cut
Fr'day and then cease digging, local
state highway officials announced to
day. Many valuable relics have been
found by the highway crew working
at Big Eddy, and the local office is
beginning to take on the appearance
of a museum. All of the relics will
be shipped to the Oregon Historical
society as soon as excavations are
completed.
I I - 1 V. . .V. ... -. nffiivjala rl o n t r
get in touch with Louis Freeman,
world traveler and magazine writer.
wco is canoeing down the Columbia
river -in search of material for ar
ticles, and show him Big Eddy and
thi relics which have been dug up
there.
OPAL TAKES MORE NAMES
I
She's Opal de Vere Gabrielle Bour
bon de la Tremville, Etc'..'
UNIVERSITY OF OREGON. Eugene,
Nov. 18. (Special.) Opal Whiteley,
Lane county girl and author of "The
Story of Opal," is, according to the
Library of Congress records at Wash
ington, D. C. Opal de Vere Gabrielle
Bourbon de la Tremville . Stanley
.Whiteley.
The apparent additions to Opal's
name were discovered here when the
University of Oregon received from
the Library of Congress a printed
catalogue card for her book. Inquiry
developed that the Library of Con
gress always prints an author's full
name in its index. When it requested
her fuU name from Opal she sent it !
I in as here given. Nobody in Lane
county apparently ever heard of the
fancy French names as being Opal's
when she lived near Cottage Grove
or at the university.
TRAIN HITS AUTQ 2 HURT
Women Injured Slightly in Wreck
, Near Woodburn.
WOODBURN, Or, Nov. 18. (Spe
cial.) This afternoon while an en
gine and mail car were backing in
the local yards the car struck an au
tomobile belonging to Dr. H. F. Orr
and completely wrecked it.
In the car were Norma Marrs, driv
ing and Sarah Sims, both of whom
had a miraculous escape from being
killed or seriously hurt. The former
was scratchen about the face and
Miss Sims was Injured about the hips 1
bu was a'ulc to walk home.
One Soldier Faces Rob
bery Charge Only. .
ALL BLAME PUT ON OTHER
Wallet Taken From One Vic
tim Is Slipped Back.
MONEY FOUND INTACT
Deputy District Attorney Believes
Story or Youth Flight Alter
Shooting- Is Denied.
Husted A. Walters, soldier-highwayman,
who shot and killed Patrol
man Jerome Palmer in a revolver duel
at Sixth and Glisan streets late
Wednesday night, was charged with
first degree murder in a complaint
issued yesterday by Deputy District
Attorney Deich.
John A. Tillman, 17-year-old sol
dier, who was Walters' companion in
crime, was formally charged with
highway robbery. After a full in
vestigation Mr. Deich announced that
a murder charge against the youthful
soldier would not be filed. Both
were held in the city jail without
bonds.
What appeared to be conclusive
evidence that" Tillman was an un
willing accomplice of Walters in the
three daring hold-ups on Portland
streets Wednesday night was pro
cured by Mr. Deich following eX
aminations of the two highwaymen
and their victims.
Companion Chnnee. Threat.
The last robbery, which was com
mitted less than a half hour before
Patrolman Palmer was shot and
killed by Walters, was when Walters
and Tillman held up and robbed
Rrvnn Riffe of Kamiah. Idaho, at
Ninth and Flanders streets.
"Walters ordered me to search the
man's pockets for money." Tillman
told Mr. Deich and a reporter for The
Oregonian. "He was searching the
pockets on one side and told me to
look through the inside pockets. In
one pocket I found the man's wallet
but when Walters wasn't looking
slipped around and put it back in the
man's overcoat pocket without taking
the money. I didn't want to be mixed
up in any robbery, but I was afraid
of Walters, who threatened to take
my life if I didn't help him."
When Mr. Riffe appeared at police
headquarters to report the robbery,
he told the detectives that his wallet,
containing $35, had been stolen by
the two highwaymen. He was then
(Concluded on Faxe 8. Column 2.) I
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Prospect of Losing- Some Depart
ments of Federal Government
Is Viewed With Alarm.
THE OREGONIAN NEWS BUREAU,
Washington." Nov. 18. (Special.)
Washington has been thrown into a
state of panic by the suggestion made
by Senator Kenyon of Iowa that some
of the departments be moved from
Washington to relieve the congestion
here. The panic is the more sincere
because of the unexpected support
which the suggestion is meeting.
Senator Kenyon suggested that the
agricultural department be removed
to the middle west, where its chief
work is done, and the suggestion is
now being made that the interior de- 1
partment be removed to the Pacific
coast. Nine-tenths of the work of the
interior department is In the west.
and men having business before the
department have to make the long
trip to the 'Atlantic coast In order to
transact it.
The congestion of which Senator
Kenyon complains began at the out
set of the war. Rents are exorbitant,
other forms of profiteering are prac
ticed, street-car fare has gone up to
8 cents and may go to 10, with all
the inconveniences that result from
this situation. In spite of efforts to
relieve street-car congestion, by hav
ing department forces work-in shifts,
there are many lmes during the day
when it is almost impossible to get
aboard a streetcar in the downtown
section.
The precedent of moving some of
the departments out of Washington
was established during the war when
Charles M. Schwab, head of the emer
gency fleet corporation, removed that
organization from Washington to
Philadelphia.
LEPROSY CURED BY OIL
Fourteen "Incurables" on Molokai
Island Reported Well.
HONOLULU, T. H., Nov. 18. (Spe
cial.) Just how well the chaulmoogra
oil cure for leprosy Is working here
Is evidenced by the fact that 14 "in
curables" on the island of Molokai
the leper island, have been recom
mended for parole as cured. Prior to
tne aiscovery or tne leprosy cure.
these patients had been deemed in
curable.
The cure was discovered by Dr. A.
L. Dean of the University of Hawaii.
To date more than 120 patients have
been paroled as cured of the world's
most dread disease.
WIRE KILLS 3 AUT0ISTS
Machine Hits High Voltage Cable
in Plunge Off Bridge.
STURGEON BAT, Wis., Nov. 18.
Three pers6ns were electrocuted here
last night when their automobile
plunged over a bridge and struck an
electric wire carrying 23,000 volts.
The dead are Miss Louise Zanders,
21, a school teacher: Arthur Delwiche,
27, and Clements Denile, 22, all of
Gardner, Wis.
Demand - Among Growers for
Stronger Price Continues; Real
Skirmish Expected Today.
ROSEBCRG, Or., Nov. 18. (Spe
cial.) After considerable "jockeying"
both by the growers and buyers, the
turkey market was finally opened in
this city late this afternoon by lead
ing local buyers offering 45 cents for
prime birds, with the promise of an
increase cf from 3 to 5 cents should
the market become stronger with con
signments arriving Thursday, which
will be the banner turkey day of the
season In this section. ,
Very few birds wer; received to
day, probably not more ttian 100, but
they were in prime condition and
quickly sought by both local an" for
eign buyers. who were anxious to get
shipments moving, as it is known
that many farmers will not kill be
fore tomorrow, thus delaying the
shipments to outside markets. '
There was still a strong demand
among growers for a better price
than the 45 cents opening and it was
considered quite likely that 48 cents
will be the prevailing price for top
birds tomorrow. Farmers interested
in the pool that has been formed here
to keep prices on a higher level for
their turkeys were hoping for a 50
cent offer before tomorrow's sales
close.
Outside, buyers from Portland, Se
attle and San Francisco were on the
ground today and a lively skirmish
probably will prevail when tomor
row's shipments begin to arrive. So
far, none of these buyers have active
ly entered the field, owing to the
scarcity of turkeys reaching the mar
ket.
HAWAII IS REPUBLICAN
Territorial Legislature Will Have
Only Five Democrats.
HONOLULU, T. H., Nov. 18. (Spe
cial.) The territorial legislature elec
tions here proved almost a clean
sweep for, the republicans but five
democrats in all making the grade.
Four democrats were elected to the
house in the 5th district on Oa.hu and
one democrat was elected to the sen
ate from the island of Kauai.
All other seats, both in house and!
senate, went republican, and J. K.
Kalanaiole, republican, was elected
representative to congress, which will
permit him to round out 20 years of
service in that capacity.
SLEUTH IN JAIL, BEATEN
Prisoners Attack Dry Agent Held
on Murder Charge.
SPRINGFIELD, 111., Nov. 18. S.
Glenn Young of East St. Louis, pro
hibition enforcement officer, was at
tacked and beaten by a number of
federal prisoners in the county jail
here tonight when he was incarcerated
on an indictment returned in Madison
county charging him with murder.
A number of the prisoners who held
him responsible for their being in jail
for violation of the. prohibition' laws,
attacked him.
Lad, 17, Leads Gang in
Huge Mail Robbery.
$2,500,000 IS RECOVERED
Taxi Driver With 4 Sacks of
Registered Mail Sought.
ALL OTHERS ARE CAUGHT
Youths,' Afraid to Cash Loot, De
stroy Bonds and' Throw 'Away
Bill of $5 0 Denomination.
" OMAHA, Neb., Nov. 18. (Special.)
The big robbery of the treasure car
of the transcontinental fast mail last
Saturday night between Omaha and
Council Bluffs has been completely
solved. It was engineered by a 17-year-old
youth and his accomplices
were all less than 20 years of age.
Three of the robbers have been placed
under arrest and have confessed.
The fourth robber has not yet been
arrested. He is an Omaha taxicab
driver and bootlegger and he has fa
cial characteristics of such marked
nature as to leave his capture only
a question of time.
More than $2,500,000 has been re
covered, according to postal agents
working on the case.
$800,000 in Bonds Boned.
One of the men under arrest, in his
confession, said he burned $800,000 in
bonds in the kitchen stove at his
home.
The bootlegging taxicab driver has
four registered mail pouches with
him, wherever he is. If the officers
know the contents, they are not mak-
ing them public.
. The robbery stands out as the
greatest one in the history of the
United States postal service and it
was engineered by a group of boys.
Fred Poffenbarger is the young rob
ber who confessed to having burned
$800,000 in the kitchen stove. He Is
barely 19 years old, but he is in the
"hard-boiled" class.
Details' Are Confessed.
Poffen-barger cSme in and gave
himself up even before his accom
plices had implicated him in the rob
bery. Newspaper reports of the third
degree having been administered to
Mearl Phillips had worked on his
mind so that he went to his father and
confessed his part in the crime. The
father took his son to headquarters
and surrendered him to the officers.
Then came the confession of the
burning of nearly 81,000,000 ln the
stove.
The confession Itself was signed
and placed in the keeping of the
postal officials. In it Poffenbarger
went into the details.
"They were liberty bonds," he told
the postal agents. "We could not use
them. So I took them home with me.
built a little fire in the kitchen stove
and stuck them in, a handful at a
time.
They burned beautifully. It took
me half an hour to burn them up,
The stove got red hot. They were In
different denominations. Two or
three times I had to take out ashes,
they were so thick and made so much
ashes."
Foil Responsibility Assumed.
Orville Phillips, the 17-year-old
brother of Mearl Phillips, the first
mail robber to be arrested and the
first to confess, was the engineer of
the robbery. It was Orville Phillips
who entered the treasure car and
threw out the sacks containing the
millions. He has made a complete
confession of the affair. He came to
the federal building and asked for an
officer.
"I am Orville Phillips, brother of
Mearl Phillips," he told the officers.
"I came here to give myself up.
was the one responsible for the mail
robbery. My brother is trying to
shield me.
Bags Passed Out to Antolsts.
"Fred Poffenbarger and I pulled
the job. We tossed the bags out to
the man in the automobile, took four
and drove away. We then found we
were alone with the other sacks. We
decided to hide them. Later we burned
the contents in the kitchen stove at
Fred's house. We got frightened when
we heard that Mearl had confessed."
The taxicab driver with the four
bags has not yet been arrested. Re
ports were that the government men
had recovered 82,300,000. The young
( robbers, according to, their confes
sion, had just 840 in cash to show for
their crime.
"We got only 890 in cash," said
Poffenbarger. "There was one bill
of 850. We were afraid to attempt
to pass that, so we threw it away.
That left us about 840."
Driver Has Four Sacks.
The missing taxicab dr ver, whom
the three boys said they met in in
Omaha pool hall, has four registered
mail sacks. The three boys did not
know his name, but gave a good de
scription of him. When asked why
they trusted hiai, a man whose came
they did not know, Poffenbarger
said:
"Well, we were taking chances any
way, eo we thought we would take
one more."
Neither Orville Phillips nor Poffen
barger knew whether or not the bonds
tConuluded on Page 2. Column S.
Portland Man Held Peculiarly Fit
ted for Highway Commission
Place Just Made Vacant.
SALEM, Or., Nov. 18. (Special.)
Governor Olcott announced in a state
ment to the press tonight that he
had determined to renew a request to
John B. Teon of Portland to become j
state highway commissioner in the
place made vacant by the resignation
of Simon Benson. The statement dis
closed for the first time to the public
that Mr. Yeon had been offered the
appointment, but had pleaded pres
sure of private business as a reason
for not accepting It.
"I have received definite word from
Eric V. Hauser that he will not accept
the position of highway commis
sioner," reads the governor's dstate
ment, "and I am turning again to
John B. Teon as a person peculiarly
fitted for this important work.
"Mr. Yeon has been in my mind
since I received the resignation of
Mr. Benson and I learned with deep
regret that he did not think it pos
sible to accept the post. I relin
quished the idea only when it seemed
possible that Mr. Hauser might be
induced to take the place. Now that
that recourse is closed I have decided
to make a more or less public call
upon Mr. Yeon.
"I fully recognize the personal sac
rifice his acceptance would entail,
but the. field for selection of a suit
able highway commissioner is so
limited, Mr. Yeon Ls so eminently
qualified for the place and the high
way construction programme is at so
crucial a stage that I am trusting he
will find a way to compose his own
business and accept this position as
a matter of public duty.
"The appointment as highway com
missloner will again be offered to Mr.
Yeon."
MEXICANS INVITE OLCOTT
Governor and Wife Asked to Attend
Obregon Inauguration. j
SALEM, Or.. Nov. 18. (Special.)
Governor Olcott today received a tele
gram urging that he and Mrs. Olcott
be present at the inauguration of
Governor Alvaro Obregon as presi
dent of Mexico. The ceremonies will
be held in Mexico City on November
30. Special trains to carry the guests
will be operated from Ladero and
El Paso, the first of which will de
part for Mexico City on November
26, according to. the invitation.
The invitation was cent to Governor
Olcott by Elias L. Torres, special rep
resentative of the secretary of for
eign -.relations, republic of Mexico,
and was dispatched from Browns
ville, Tex.
Governor Olcott was in ' Portland
today and it could not be learned
whether he would attend - the cere
monies.
INDEX OF TODAY'S NEWS
The Weather.
YESTERDAY'S Maximum temperature, 08
degrees; minimum, uo degrees.
TODAY'S Rain; southerly winds.
Foreign.
League drafts troops from Spain to pa
trol Vlina during plebiscite. Page 3.
fttional.
Hardline, in naming next cabinet, owes no
political ravora. rage i.
Republican lead in house now 170. Page 8,
Increase in house seen as solution to re
apportionment problem. Page 4.
Senator Kenyon's proposal to move some
government departments scares capital.
Page l.
World oil supply declared assured for sev
eral generations. Page 3.
Taxable incomes of U. S. are Increased
J2,J72,000.000 over last year. Page 6.
stn.t authority to fix carrier charges over
ridden in lavor of federal right. Page 8.
lometic. v
All New Orleans cheers Harding. Page 1.
Waste of $3,000,000 in month by failure to
une shipping board's oil fleet charged.
Paw 1.
Boy bandit burns fftOO.OOO of loot from
huge mail robbery; ?2, 500,000 recovered.
Page 1. 1
Hog prices reach lowest level recorded in
more tnan tnrec years, x-asa
Eyewitnesses tell of misrule in Erin.
Page '2.
Pacific Northwest.
Turkey market at Roseburg opens with
45-cent oilers. rage- .
Boasts of torture and slaying of Robert
Krug laid to A. J. Weston by witness
in trial at Sisters. Page 4.
Barley growers of Tule lake district lose
heavily by rain storm. Page 5.
State supreme court rules against Philo
math college endowments. Page 20.
Ste te highway Job declined by Hauser.
Page i
Governor to urge John B. Yeon to accept
appointment to highway commission,
page 1.
Inquiry in Link dam dispute is launched,
page 4.
Sports.
Columbia defeats Jefferson at football, 33
to 0. Page 14.
Boy McCormack rules as favorite in com
ing bout with Willie-Meehan. Page 15.
Silver Dare wins cup, H. 8. Burnham rid
ing. Page 15.
Aggies hard hit by new injury to Powell.
Page 14.
Commercial and Marine.
Boxed apple prices decline in spite
smaller stocks. Page 25.
Chicago wheat weakened by slump
of
In
coarse grains, fage D.
Stock market again breaks with heavy
selling. Page 25.
Two British steamers to begin loading
wheat for Europe today. Page 17.
Terminal to link timber with market.
Page 17. -
Orient trade trip planned by Oregon mer
chants. Page 17.
Portland and Vicinity.
Slayer's soldier pal escapes murder charge.
Page l.
Graft charge made against policeme:
i
Page 12.
Experts lecture to ice cream men. Page 19.
Change in city building code permitting
three-story frame apartment houses is
sought. Page 19.
Warning of wave of check forgeries is
issued to public. Page 12.
88 Aliens become American citizens. Page
16.
All bids at stock show sales low except
for Shorthorns. Page 16.
Sidney Vincent and Will G, Steel, Eugene,
park-to-park road managers for Ore
gon. Page 20.
School board proposes bill to revise teach
ers' tenure law. page 16.
U. S. Failure to Use Oil
Carrier Fleet Cited.
FUEL COST HELD TOO HIGH
Leasing of Vessels to Private
Operators Rapped.
IGNORANCE IS BLAMED
What One of Chief Departments
AVas Doing: Declared Unknown
to Operating Division
NEW YORK. Nov. 18. Failure of
the tank steamer department of the
United States shipping: board to util
ize its fleet of bulk oil carriers tor
the needs of shipping' board vessels
caused a loss to the government ot
$3,000,000 in one month, Martin J.
Glllen testified today before the
Walsh congressional committee in
quiring into the shipping board trans
actions. Gillen was spec'al assistant
to John Barton Payne, ex-chairman,
last May when, he said, the alleged
dereliction occurred.
The tank steamer department had
54 vessels, he added. Of these, 20
were in the hands of private oper
ators. It was discovered on May 26
last that the 54 vessels were tied up
at southern ports for lack of fuel oil
and, in addition, 40 per cent of the
operators were buying oil on the open
market for $4 to $6 a barrel. He
added '60 per cent of the oil we were
carrying in our ships was furnished
at $2.07 a barrel."
Operator Complaints Cited.
Gillen testified that this condition
of affairs was disclosed through com
plaints of two operators. Captain Paul
Foley was then head of the tank:
steamer department, he said, and "it
was ascertained he did not know that
ships were compelled to buy oil at a
Iiigher' price than could have been
furnished by the' board." Captain Fo
ley, he added, was later relieved of
his duties as head of the tank steam
er department.
In response to a question by Repre
sentative Kelly, Gillen said Foley was
now director of operation of the
board's entire fleet of more than 1100
ships, including the tankers,
A chart made of the tank steamer
operations, Gillen testified, showed
that 33 were in government service
and others in semi-private and official
work.
Standard Oil la Rained.
Some were operated for the benefit
of public utilities and some in the
fervice of supplying oil for shipping
board fuel stations abroad. Among
the operators he named the Standard
Oil companies of New York and Cali
fornia,, the Vacuum Oil company,
Atlantic Refining company, American
Fuel Oil Transportation company.
Island Oil company, the France and
Canadian Steamship company and
others.
He added that last May this coun
try, as well as the entire world, was -short
of tankers. On the open market
such ships were being chartered at
from $15 to $22 a deadweight ton, he
said.
Tankers Are Leased Oat.
The shipping board was leasing its
tankers, he added, to private com
panies at from $6.15 to $6.50 a ton.
The tankers were described as the
only floating property this govern
ment then owned on which a profit
could have been made."
The witness declared no one in the
entire division of operations knew
that such a large percentage of our
ships were buying oil in the open
market at advanced prices because
the operating division did not know
what one of its chief departments
was doing.
Cnt in Operators Wanted.
Concluding his two days testimony
relating mainly to the alleged Jack
of an accounting system by the board
prior to the advent of Judge Payne,
Mr. Gillen outlined what he termed
"recommendations as to a construc
tive programme-"
He said that the board had too
many operators of its ships who cre
ated not only an unnecessary over-'
head expense but who caused losses
by bidding against each other for
shipping board business. He said the
present 176 operators should be cut
to not more than 50.
He asserted the new shipping board
should be relieved of all burdens of
pat transactions, of the problems
of sales and of the liquidation of oil
accounts. To do this, he explained,
congress should create a small liquid
ating corporation made up of five
big business men, the corporation
to be non-political in its make-up.
Definite Work Is Advised.
The shipping board should then be
organized so that each of the six
members, aside from the chairman,
should have a definite line of work
for which he would be responsible,
such as the problems of docks and
docking, allocations, repaiis and sim
ilar matters. The main idea in his
suggestion, he said, was to ehiole the
board now appointed to go ahead and
function for the future.
He also declared he was not in
favor of government operation of
ships any more than he was in favor
OJoiiuaued oa Pau 3. Column 2.
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