THE MORNING OREGONIAN, L SATURDAY, DECEMBER 23, ! 1920 t
1 the Marion county circuit court to un
seat Herbert Gordon aa represent
ative in the legislature from Mult
nomah county has been est for
nett Monday by Judge Kelly. It
originally was agreed to present the
charges against Mr. Gordon today,
but because of tomorrow being a holi
day the hearing was continued until
next week,
The protest against Mr. Gordon was
filed by Leslie M. Murray, who alleged
that the former's election was1 illegal
for the reason that he wasi a candi
BIG EUROPE CREDIT
BY
Exemption of Land Bank Is
r . sues Held Wrong.
Billion Loan to Germany Also
Held Impracticable.
date for two offices at the same -con'
test Should it be found that Mr.
V i
Gordon's election was illgal Mr. Mur
ray hopes to get the place, as he re
'Y .:y,: . ... ;v-.-
SENATORS HOLD' HEARING
celved.only a few votes short of the
required number to put him In the
CONGRESS ASKED TO' ACT
winning class.
West Parli near Washincrton Direction Jensen &VwHerberg
At the election complained of by
Mr. Murray 12 candidates were noml
nated for the lower branch of the leg.
wishes you a ghiistmak Jand:offeh:foyur entertamment
islature from Multnomah county, the
Secretary Would Have - Organisa-
4
tiona of Private Capital Bear
Share of Burden.
complainant finishing in 13th place.
Argunieuts in Favor of Providing
Market for American Food-
toddy tfif super-production
99
WET YULE TBfiDE JOLTED
stnffs Given Committee
6
IX 1 1 s
URGED
HOUSTOni
PLAIV FACING ROOKS
v. 'I
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WASHINGTON. Dec. 24, With
drawal of the tax exemption provision
from farm loan bonds issued In the
future by joint stock land banks" has
been recommended to congress by
Secretary Houston on tho ground that
these banks are organizations of prl
vate capital for commercial purposes
in which the profits accrue to the
benefit of the investing stockholders.
Tax exemptions in the case of Joint
stock land banks were declared by
t'.e secretary to amount to, a.. sift at
the expense Of the government ana
taxpayers generally. The privilege,
he said, should not be continued with
respect to the private mortgage com.
panies. organized for private profit.
This is emphasized, the secretary as
serted, in this period of high taxes,
when the government has established
the policy of subjecting its own se
curities to partial taxation and when
tne treasury cannot afford to dispense
with any of the receipts which other
wise would accrue on account of
taxes.
The withdrawal of the tax exemp
tion for the United States from farm
loan bonds, however, the secretary
suggested, should be accompanied by
an increase in the powers of the. fed
eral land banks to make any loans
now authorised by Joint stock land
banks in order that there be no cur
tailment of the financial benefits to
agriculture provided by the farm loan
act j-
"In view of the absence of compen
sating' benefits for the-loss In reve
nue resulting from the extension of
the tax exemption privilege to se
curities issued by . institutions or
ganized on an Investment basis by
private capital for gain," Secretary
Houston continued. "I think it is
clear that section 28 of the federal
farm loan act should be amended
so as to withdraw the tax exemptlo
privilege from farm loan bonds is1
sued bV joint stock land banks.
"In this connection. It should be
borne in mind, however, that the join
stock land banks now in operation
were organized under sanction of law
and with the approval of the govern
ment. In any legislation withdraw
lng the tax exemption features from
farm loan bonds issued by Joint stock
land banks it would appear to be nec
essary, however, to make provision t
safeguard joint stock land bank
bonds already issued as well as- th
interest of existing joint stock land
banks."
During the past fiscal year, the sec
retary said, 27 joint Stock land banks
were In active operation, making
loans in the aggregate of $29,262,470
to 3148 borrowers.
SEVERAL ALLEGED BOOTLEG
GERS ARE ARRESTED.
IT
CITY TO TRANSFER $203,909
TO KEEP CARS RCXXIXG.
Special Ordinance In Seattle Says
Extra Fnnd Is Required to
Operate Street Lines.
SEATTLE. Wash., Dec. 24. (Spe
cial.) In transferring $203,809 to the
city railway fund today by emergency
ordinances to provide for the railway
payroll, the city, for the benefit of
the carline, made its first inroads on
the general fund raised by taxation.
The transfer depleted th Interest
funds and the contingent fund cre
ated to enable the city to pay cash
for goods when a discount can be
obtained, and repealed the ordinances
creating them. The measures were
introduced last Monday and passed
at a special meeting of the city coun.
cil today.
The first interest fund transfer was
made by the emergency ordinance
December 10. when (137.000 was di
verted from the utility street railway
bonds interest and redemption fund
to the street railway to meet the pay
roll for the last half of November and
avert placing the lines on a warrant
basis. The total amount transferred
this month is $340,900 $203,909 yes
terday and $137,000 December 10.
Now that the railway bonds inter
est and redemption funds are deplet
ed, the city will have to d-e-vise means
to raise money for an interest pay
ment March 1 next, and a principal
payment Of $833,000 March 1, 1922.
The ordinance transferring the funds
carried emergency clauses reciting
that the money waa required 4o keep
the street railway lines in operation
rinrine- th npTt SO riav.
li' " Ml IPC HIT
- IVUUb.il 1
RESIGNS SEAT
Senator From Idaho to Qualify as
. Trade Commissioner.
THE OREGONIAN NEWS BUREAU.
Washington, Dec. 24. Senator John
F. Nugent telegraphed hta resignation
aa a United States senator to Gover
nor Davis of Idaho today, to take ef
fect on January 15. On that date
Senator Nugent will step Into office
aa a aemur or the rederal trade com
mission, to wnich he waa appointed a
few daya ago by President Wilson.
Senator Nugent said that his resig
nation was compelled by the necessity
for his early qualification as a mem
ber of the trade commission.
It Is understood here that Frank R.
Gooding, who would legally succeed
Senator Nugent on March 4r will be
appointed to Nugent's unexpired term
as senator.
Well-Known Contractor Is Held on
Suspicion of Being Purchas
' lng Agent.
The late Christmas trade in liquor
suffered a severe Jolt yesterday when
several alleged bootleggers . were
taken into custody by the' federal
authorities, charged with Violating
the national prohibition law;. .
M. C. Hill, a weil-known contractor
and builder, was arrested after papers
and bills taken In a raid In Clacka
mas county, according to the federal
authorities, seemed to indicate that
he had been acting as purchasing
agent for a moonshiner.
The raid on the still took place
early in the week. The apparatus
was cleverly concealed in the under
brush of the hills near Oregon City.
A much frequented path ran close by
the still, but the latter was bo clevr
erly hidden under a screen of boughs
that passersby would never know of
its existence. Hill was released un
der $500 ball.
J. W. Chandler and H. W. McNab,
proprietors of the Idle Hour pool
hall, were also arrested and released
on $500 bail each, after, it was al
leged, revenue officers purchased
whisky over the bar at their estab
lishment. Peter Alexis and Martin
Jafers, also arrested as bootleggers.
were committed to jail by United
States Commissioned Frazer when
they were unable to furnish bonds.
PEOPLE OF FIIE !
i
ATTITCDE'OF D'AXXCXZIO EX
ASPERATES POPCLACE.
Prospect of Conflict With Italy or
Jugo-Slavia and Ruin tq. Com
merce Xot Liked.
FIUME, Dec. 23. (By the Associa'
ted Press.) Captain D'Annunzio has
refused to receive any further com
munication from the Italian offi
cials outside of Flume, either oral or
written, considering that hostilities
had begun. Whenever the "command
er." as he la called here, -moves,
trumpets blow while hi3 wild march
"Eja, Eja, ala, ala" resounds. .... .-
Most of D'AnnunzIo's time is occu
pied by ministerial and war councils,
and in issuing proclamations and ad
dresses to what he describes as his
"loyal population of Flume." The
people here have declared themselves
tired of a situation In which they are
deprived of a voice, and their exas
peration is increased by the almost
complete destitution to which the
city has been reduced by two years'
paralysis of its commerce.
They disapprove of . D'AnnunzIo's
policy in risking a conflict with ei
ther Italy or Jugo-Slavia. especially
as they believe that at this time Gen
eral Caviglla means business.
CLACKAMAS SPLIT URGED
Oak Grove and Mllwaukie Said to
Be Displeased by Road Plans.
OREGON CITY, Or., Dec. 24. (Spe
cial.) The question of the division of
Clackamas county bobbed up again
when at a meeting at Oak Grove last
Wednesday evening it was advocated
to divide Oak Grdve and Milwaukie
districts from this county and place
the two communities in Multnomah
county. Harvey G. Starkweather is
the sponsor for the movement, and It
Is rumored today that Estacada has
joined forces . with the dissatisfied
factions.
The trouble originated over the pro
posed road-building programme, when
the county court left out a great deal
of Milwaukie and Oak Grove districts
under the $1,700,000 road bond Issue.
DEATH COCKTAIL STOLEN
20 Gallons of Poisoned Moonshine
Robber's Loot.
DENVER, Colo., Dec. 24. Some
where in Denver someone drank coro
ner's cocktails tonight 20 gallons of
poisoned moonshine . liquor stolen
from the storehouse of the federal
prohibition agents, presumably for a
Christmas celebration.
The whisky was taken from a 60-
gallon barrel confiscated in prohi
bition raids and placed In the customs
building for safekeeping. It had
been poisoned to make it unfit for
consumption. No one dreamed that
thieves would enter the building last
ight and extract the liquor from a
60-gallon keg, which had been labeled
poison. .
BLACKMAILER IS PAROLED
Man Who Terrorized Prominent
Ogden Citizens Liberated.
SALT LAKE CITT, Utah. Dee. 24.
Joseph Henry Martin, convicted in
1914 of blackmailing several promi
nent Ogden citizens, who were ter
rorized by his threats, was paroled by
the state board of pardons today.
- The blackmailing campaign and the
trial of Martin gained , nation-wide
Interest. ' - ,
SEAT CONTEST DELAYED
Hearing of Protest Over Gordon
Election to Re Xext Monday,-
SALEM, Or., Dec. 24. (Special)
Hearing of the proceedings filed In
TWO ACCIDENTS FATAL
State Industrial Commission Issues
Weekly Report.
SALEM, Or., Dec. 24. (Special.)
There were two fatalities due to in
dustrial accidents In Oregon in the
week ended December 23, according to
a report issued today by the state
Industrial accident commission. The
victims were S. M. Thiess, miner, of
Bourne,- and Joseph M. Fitzgerald,
laborer, of Salem.
Of the 456 accidents reported, 420
' THE OREGONIAN NEWS BUREAU,
Washington. Live. 24. (Special.)
Arguments urging the establishment
of a huge credit in European coun
tries, Germany included, by which a
market could be found for Ameri
can foodstuffs, were presented today
to the joint senate committees on
agriculture, finance and forestry.
The chief argument was made by
J. R. Howard represented the Amer
ican Farm Bureau federation. ino
definite -action was ' taken and
was the. sentiment of the committe
that the' objects desired could be
best obtained thepugh the operations
of the war finance corporation which
is about to be re-established.
Efforts to create a $1,000,000,000
credit In the United Statea for Ger
many as a means of encouraging
trade relations and bringing relief
to the agricultural interests of the
country will not be encouraged by
the state or treasury departments. -
High government officials regard
the proposition as. impracticable and
unwise and will so advise the senate
committees on banking and currency,
and on agriculture.
The suggestion for the - establish
ment of a $1.000,000,000 . credit for
Germany, In which Austria may par
ticipate, is part of the programme
inaugurated by the farmers' organ!
zations of the country which eee In
this plan an opportunity to mar
ket American surplus foodstuffs.
The German side of the proposition
Is represented by William Wallace
Brauer, who is here for the business
interests of Germany, although in no
way representing the German govern
ment, with which the United States
is still technically In a state of war.
Mr. Brauer has been In consulta
tion with J. R. Howard of Iowa, rep
resenting the American Farm Bureau
federation, which claims a -membership
of 1,500,000 farmers.
Prloffy Lien la Proposed.
While Mr. Brauer does not repre
sent the German government, it Is
understood that Berlin has applied to
the reparations commission, as pro
vided for under the Versailles treaty,
to acquire certain foodstuffB by giv
ing a priority lien on the taxable re
turns of Germany.
It Is acknowledged by all sides that
without this priority lien it would be
impossible for Germany to give any
possible security for the credit which
is desired here. Even in that event,
according to government officials
who have been giving the subject
careful consideration, it Is doubtful
if proper security could be gtven.
It waa pointed out here today that
even In her most prosperous days be
fore the war, Germany was never
able to pile up a balance of trade in
her favor of more than $500,000,000.
Now that she is shorn of her colonies,
of her merchant marine and parts of
her territory, and is vainly endeav
oring to liquidate her war debt and
meet the demands of the allies for
reparations, she could hardly be ex
pected to build up any balance of
trade at alL .
PermisHlon Held Doubtful.
It is regarded as extremely doubt
ful that the reparations commission
would allow the priority lien on Ger
many's taxable resources in view of
the fact that the allied countries.
especially France and Belgium, are
going through the aame process of
strangulation which Germany is ex
periencing as result of Germany s war
aggression.
Government officials see only one
way in which the German credit could
be extended and that would be
through a bond issue which would
place the American government b6'
hind the proposition. This would
have to be done without security, they
say, and would result in added taxa
tion upon the whole people to bene
fit single class namely, the agri
cultural group.
Government officials discuss addi
tional - taxation with considerable
timidity In view of the fact that Sec
retary of the Treasury Houston 13
already announcing a probable gross
defioiency in the treasury of $2,100,-
000,000.
. Any action by the reparations com
mission, it is realized, will be predi
cated upon the final decision that
will be made as to the total sum
Which Germany will be expected to
pay. It was anticipated during the
time of the peace conference, that the
sum would total approximately $40,
000.000,000. The amount will be def
initely fixed by the reparations com
mission in May, 1921.
.As a result of the meeting of the
reparations commission, which ad
journed at Brussels yesterday, It is
understood the present "plan is to
present Germany with a bill varying
between $25,000,000,000 and $30,000,
000,000. What Germany is willing to
pay is represented by the proffer
which she made to pay the allies a
Jump sum of approximately $7,600,-
uuv.uvu proviaea ner colonies were re
turned to her. ,
The American financial experts who
passed on Germany's - resources at
Paris came to the conclusion that'
giving Germany a breathing spell of
five years, she might1 be able to pay
$10,000,000,000 to $15,000,000,000 with
in 30 years. The-Interest on this in'
debtedness would approximate $500
000,000 annually, making the total
something like $30,000,000,000.
Brauer'a Part Not Known.
The part which Mr. Brauer Is tak
ing in negotiating the proposed billion-dollar
credit is not exactly known.
He is understood, to be a cattle ex
porter in New York. It has been un
derstood here that representations
were made to the German government
that this credit might be obtained and
that the person making it deaired the
privilege of expending it here. Later,
it Js understood, the German govern
ment receded from its previous en
couragement of the project.
The suggestion that has been made
that German seized property in this
I II a r-:ju V7 3 Mill
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I adapted from Jltflllll
ST ( KLEY'S . I - i - yfi 7 - v . . - V
;- famous story : ; ' Vfl V. l 1 . .
"Rozanne ' 5; - V . ,AJ X , ' t -: -i' yw . ; - ; SEE IT I
rk r r J. W , -TT- . ; TODAY
h fSt iff y ?r v ty u v--- y r
kai - i J h lV frfc - hr vl ) i
5i . -f y Don't fail to see beautiful Ethel Qayton f Jr - " HV. f ,!i;t.V,E ' 'A.
' in her wonderful Queen of Sheba gown. Jf f 4 -'5i'" "'Sf " ' K'
Glittering- gems and oriental; magic Ruled by a sinister power, M ' , y V'
lured Rozanne lovely society queen she was at times a lovely, in- ; '-',' ? 5 ' 7Pi;i i v k '
away from love, honor and happi- nocent girl at times an f , '-". ' ('ipFf
ness to a Jekyll-Hyde existence. abandoned adventuress. V- V., ' . (
mm JOhw r. mm V -y aw
WW : DIRECTOR OF MUSIC 1 :; . 3
,'V$t " i. V' leads the new Peoplfs Orchestra la splendid accompaniment and in " " V - : f ' f '"v w '
! ' Vf x 1 s- -v - daily intermission concert selection from VL - -,X yVj, M SEE IT
; .. c- M '&t . vv - FLORA BELLA ' I $fyJ TODAY'
- ' . . 1 Y f v inta-oducing: "Give Me All of You," "You Are the Girl," "Creep, . V i UlrJr ' '
V r Jf -'I , - ."Creep " "Flora Bella." . . k Alt V'f
I
jz,y Comedy JtLaticattonal p bcemc
i
company," with Headquarters In Port
land, has been incorporated by K. s.
Minchin, O. A. Spliid and V. A Crum.
The capital jitock was 18.&00.
Widmer, Bohren & Co. has been in
corporated by W. Widmer Jr., A.
Widmer Sr. and Gottlieb Bohren.' The
capital stock was $10,000. - '
LIBERTY CHRISTMAS GIFT
James Mahoney to Ieave Washing
ton Penitentiary Today.
OLTMPIA, Wash., . Dec 24. Gov
ernor Hart today pardoned . Jamea
Mahoney, eervins; a minimum sentence
of five years in the Walla Walla peni
tentiary for grand larceny. The par
don is issued in accordance with the
custom of granting executive clem
ency to one or more inmates of the
penitentiary on Christmas day.
Mahoney was formerly a conductor
on the Milwaukee railway and it is
unaerstooa ae win uo rwrtureu 10 ms
old position.. He had served 2 & years
of his sentence. His home is in Sno
homish county.
tied at Canemah, near Oregon City,
when they first came to the nbrth
west territory. ,
A veteran shipbuilder, Mr. Paquet
did much to aid in the establishment
of that industry on the Pacific coast.
He was also a member of one of the I vlved by two brothers, Joseph raquet
first fire departmenta of tha state of Portland and Oliver Paquet of I
and was a veteran of the civil war.
Surviving; him are his daughters, Mrs.
Daisy Ulen and Mrs. Luly Turner, and
a son, William Paquet. He is also aur-
Wupanttia, Or. Arrangements for th
funernl will tie announced Inter.
were subject to the provielons of the
compensation act, 21 were from firms I country be used as a lien to obtain
the law and IS were from public utll
lties not subject to benefita under the
act.
Mrs. Baldwin Visits School,
SALEM, Or., Dec. 24. (Special.)
Mrs. Lola G. Baldwin, member of the
advisory board of the state industrial
school for girls, was in Salem today
conferring with Mrs. Clara Patterson,
superintendent of the institution. Mrs.
Baldwin resides in Portland and is at
the -head, of the women's protective
bureau of the police department.
Edlefsen's wish you Merry Xmaa. Adv.
such a credit is not looked upon with
favor. .-
The United States government baa
maintained that private property
should be held inviolate and the total
sum now in the hands of the govern
ment dpes not amount to more than
$300,000,000. , The American repre
sentatives at Paris resisted attempts
to have, this property thrown in the
reparations pool, although they did
agree to place certain American
claims for damages against it.
- Two Firms Incorporate.
SALEM, Or., Dec. 24. (Special.)
The Builders' Hardware Si Supply
LOUIS PAQUET IS DEAD
Pioneer Succumbs at Home of
Daughter in Portland.
Louis Paquet, one of the early pio
neers of Oregon, died yesterday at
the home of his daughter, Mrs. Daisy
Uleri, 7429 Eighty-second street. Mr.
Paquet was born in St. Louis on April
17, 1845, and came with his family
to Oregon in 1852. The family set-
Cuticura Soap
Without Mur
The Season's Greetings
to All People:
We hold in grateful esteem
those who have permitted us to
serve them during1 the year,
and through all the years that ,
reach back in an unbroken line
; to the founding of this house,
' a. half -century ago. To render
even a greater service is our
. aim for the present our hope
- for the future.
F: FRIEDLANDER COMPANY
310-312 Washington Street
1 I
1
We extend
to our friends 'our
sincerest wishes for a
CJjrt5tnw5
antra ;
$ro$perou0 J2eto Sear
Stout-Lyons Drug Co.
your "Home Druggist"
.1