a
Jflonmnv 111 itpnian
VOL. LIX NO. 18,760
Entered t Portland Ofron)
Postofflce as Second-Clu Matter.
PORTLAND, OREGON, SATURDAY, JANUARY 8, 1921
TRICE FIVE CENTS
FOREIGN INFLUX '
DECLARED BOGEY
HUGHES PLEADS FOR
2 STEAL TAXI,
STATE DEPARTMENT
MAY BAN LORD MAYOR
WIFE STILL FASTING;
LEGISLATURE HAS
SENATE BODY URGES j
ARMY CUT TO 175,000 1
RECEIVER TO ASK
REFUND OF TAXES
Bond House Income Re
turns to Be Studied.
ROB
MICHIGAN SENATOR
HUBBY STANDS
PAT
OF
COXTICTIOX OF XEWBERRY IS
' HELD GROSS PERVERSION.
ROW BETWEEN GOVERNMENT
OFFICHLS ACCENTUATED.
WOMAN HOPES, HUSBAND RE
FUSES TO JOIN CHURCH.
UNANIMOUS FAVORABLE
PORT IS ORDERED.
RE-
on
STORM
Johnson Exclusion Bill
Strikes Senate Snag.
DESIRABLE ALIENS NEEDED
House Immigration Measure
Regarded as Unscientific.
EUROPEAN MENACE DENIED
Heed of Farmers and Farm Labor
Urged Against Any Suspension
I of Old World Invasion.
THE OREGONIAN NEWS BUREAU
Washington, Jan. 7. Hard sledding is
.head of the Albert Johnson bill to
suspend ail foreign immigration for
one year. Opposition to the measure
where hearings are being held, bas
developed amazing proportions.
The common criticism is that the
measure is unscientific and excludes
from the country certain classes of
Immigrants for whom there is a cry
ing need. Among the opponents of
the bill, it will be discovered before
long, are several senators who have
specialised on the immigration ques
tion and have been just as anxious
as house leaders to see some check
placed upon the after-war influx to
this country.
Farmers and Labor "irrdrd.
It is complained, however, that the
Johnson bill fails :o take Into ac-
counrthe preponderant growth of the
cities and the need for more farmers
to develop the agricultural areas.
Not only does the country need more
farmers, it is asserted, but it also
needs farm labor. Too many native
Americans. It is declared, desire to
live in the city, which makes it neces
ary to go to Europe for a Caucasian
class willing to go on the land, either
as farmer or farm laborer.
The Johnson bill deals with the
question In such arbitrary fashion
that business man throughout the
country have awakened to the danger
of a depleted agricultural industry
if the house measure is not remodeled
before it goes through the senate.
Drift Is Am, From Farms.
Senate leaders In the Immigration
committee feel that the house bill
represents entirely too much the
Tiews of Individual members of the
bouse committee picked up cm nu
merous junkets to Ellis island, and
is not the result of the pinions of
the
great business leaders of the
country who have to deal with indus
trial problems in the more practical
Way.
This latter view Is well expressed
ty William G. Willcox and Francis H.
Bisson. New York' business men. who
tre opposed to the Johnson "bill.
"It is a matter of common knowl
edge." said Mr. Willcox. "that we are
not producing in this country a sup
ply of farm labor. On the contrary.
It Is known that the drift has been
way from the farms and toward the
great industrial centers.
"Farm labor has been recruited In
the past from the annual immigration,
which averaged about 1,000.000 a year,
and a large proportion of it has come
to the agricultural districts. For the
last six years this farm labor has
been cut off almost entirely.
Air filled With Hysteria.
'Certainly the air has been filled
with hysteria." said Mr. SlsSan. "The
ober fact is that there have come in
during the year which has closed less
than 300.000 good immigrants, net. and
ao the present agitation, In the face
of this incoming tide of 300.000 an
nually, is not well based. More than
that, we have vast undeveloped re
sources in this country which need
this immigration more than ever be
fore. "Consumption has overtaken pro
duction, and we have the lands wait
ing for this sort of labor, and 1 think
It would be an international crime to
deny to civilization the opportunity
lo support itself on our land. So far
ss there being an element of danger,
let me say that if the entire popula
tion of Germany and the entire popu
lation of France were injected into
the state of Texas it would be less
congested than Italy is today. And it
is estimatd that our southern states
alone can absorb 350.0.00. 000 workers."
Iovrrty Stems Immlicratlon.
Opponents of the Johnson bill nave
been further aided during the week
hi- the .results of investigation con
ducted in 'European countries by a
special representative of the New
York Herald. These reports refute all
of the assertions of Immigration
Commissioner Wallis of Ellis Island
that 15.000,000 Europeans are seeking
passports to this country.
It is asserted that poverty Is so
widespread in Europe, on account of
th war, that there are not 15.000.000
persons of the class who might con
aider coming to this country able to
raise the price of passage.
SUGAR NOW 7.75 CENTS
Wholeale Price Reaches Lowest
Point Since Drop Began.
NEW YORK, Jan. 7. The Federal
Sugar Refining company today
re- a
Auccd its price to a basis of 7
ft, pound.
5 cents
This Is the lowest figure since the
downward movement began in sugar,
Opening Argument .Made Before
Supreme Court in Appeal From
.Michigan Decision.
WASHINGTON. Jan. 7. Conviction
of Senator Newberry of Michigan and
16 others of conspiring to violate the
corrupt practices act was denounced
as a perversion of justice by Charles
Evans Hughes, of counsel for th de
fense, when arguments In the appeal
were heard today in the supreme
court.
Mr. Hughes quoted the government
brief as showing that it was admitted
that no restriction was placed by law
on the expenditures of a political
committee in behalf of a candidate
and further that no attempt was made
to show that Senator Newberry had
contributed in xiess of the legal lim
itation of $3750. $
The construction glTen by the pre
siding judge was a "gross perversion
of the statute," r. Hughes declared,
and he promised to give, the court
examples "in abundance" to show the
"enormity of this conviction."'
"Newberry did not give a cent to
his campaign fund," Mr. Hughes said.
"Despite the government assertion
that it could go to the jury if it had
been necessary on the point of his
personal contribution, I can say here
that he did not contribute one cent.
He was in New York as a commander
in thenavy and never did a candidate
have less to do with his nomination
an election."
Mr. Hughes then reviewed the In
cidents which led up to the forma
tion of the Newberry campaign com
mittee, which he described as a "pure
ly typical political committee vol
untarily formed by friends and well
wishers of Commander Newberry."
The government's briefs were filed
today only a few hours before the
case was called for argument. Out
lining the government's case, Solicitor-General
Frierson said that, "as
suming that the corrupt practices act
was constitutional, the Indictment
clearly and distinctly charged ao of
fense against the United States."
AIR MAIL RATHER COSTLY
Train Transport Speediest Also,
Says Representative Madden.
WASHINGTON. Jan. 7. The speed
iest method of transporting mail be
tween New Y'ork and Chicago is by
train, not by air. Chairman Madden
of the appropriations sub-commlttec
derlared In the house today In ex
plaining provisions of the postoffice
appropriation bill, carrying a total
of 3573.964,721.
Cost of airplane mail Is at the rate
of $5 a ton-mile, compared With a
rail rate of 7 cents a ton-mile, Mr.
Madden said, and if all mall were car
ried by air the cost would be 310,000,
00,000 a year, with actual receipts
around 1450,000,000.
Atslde from the cost. Mr. Madden de
clared that while most folk might
think so there was no time saving
by air in the New York-Chicago
service.
ROAD OPEN AFTER TILT
City's Demand for Watchman on
Ter-williger Boulevard Granted.
Terwillager boulevard was reopened
to the public yesterday at the direc
tion of the county roadmaster. As
Quickly as the news. was received by
City Commissioner Barbur, he com
municated with the county officials
and demanded that the boulevard be
either closed again or that a watch
man be detailed on the highway to
piotcct motorists from slides of earth
from the county hospital excavation.
The county officials agreed to de
tail the watchman to the highway
last night and a conference between
city and county officials will be held
today to male final arrangements. It
was announced.
SENATE'S EYE ON CUBA
Investigating Committee May Visit
Island at Once.
WASHINGTON. Jan. 7. Conditions
in Cuba, which already are receiving
the attention of President Wilson and
the state department, have bern en
gaging senate study, and it is pos
sible that the senate committee
Cuban relations will visit the isfand
at once.
Senator Knox, republican, Pennsyl
vania, has suggested the step to Sen
ator Johnson of California, chairman
of the committee, and a session of
the committee will be called immedi
ately to consider the matter.
"DEVIL ANSE" IS DEAD
Pneumonia Takes Xoted Leader in
x Fend of SO Years Ago. v
HUNTINGTON. W. Va.. Jan. 7.
"Devil Anse" Hatfield, noted leader
in the Hatfield-McCoy feud of 33
years ago. is dead.
Word of his death last night In the
Hatfield home at Island Creek, Logan
county, W. Va., reached Huntington
tonight. Pneumonia caused death.
DEWEY STATUE APPROVED
Monument on Shore of Manila Bay
Will Be Erected.
MANILA, Jan. 7. The Dewey me
morial committee today decided upon
erection of a statue to cost 320,000 as
monument to Admiral newer, on in
shore of Manila bay.
The United States congress will be
asked to appropriate half the funds
and the Philippine legislature halt
GARAGE, WIN DUEL
Both Escape; 2 Police
men Face Suspension.
OUTLAWS IN ARMY UNIFORMS
Mayor Scores Pursuers Giv
ing Up Chase.
COWARDICE IS CHARGED
Driver of Limousine Forced by
Pair to Do Biddings Driver
klso Is Robbed by Duo.
Theft of a limousine, robbery o
the driver, hoh:-up o; the Broadway
NAuto Inn. a pistol duel between two
rdbbers and Patrolmen Slmpkinfs and
Skoglund and probable suspension of
those officers for alleged cowardice
.were events which followed each
other in kaleidoscopic succession be
ginning at 8:30, last night. The two
robbers made their escape after one
of them was knocked down as he ran
by a street sweeper, Jimmy Backen
to's of 114 East Twentieth street
North.
About 8:10 last rHght Enor C. Lar
sen, taxi driver in the employ of
C. R. Lane, 362 Third stret, picked
up two fares at 107 Broadway. The
two men were dressed in the uniform
of infantry.
$18 Taken From Driver.
Larsen drove across the Hawthornf
bridge to the east side, and at
point on East Eleventh street be
tween Market and Mill streets, ne
said that , he heard the click of a
revolver being cocked, andi received
the order to turn to t:ie left The
two robbers told him that if he fol
lowed Instructions they would not
injure him. While he was driving
one of them took $18 from him, and
upon reaching Twelfth and Market
streets he was orderii to leave the
motor running in neutral and to get
out. He obeyed.
The pajr next was heard from when
a telephone report informed Captain
Inskeep of the first night relief that
the Broadway Auto Inn had been
held up by two men in soldier s uni
form. Presenting their automatics
in the well-lighted office, the men
took $24 from the till while Pro
prietor Montgomery, his wife and
a mechanic named Victor 1. union
were held at bay. The robbers then
dashed to their limousine and drove
away.
Outlaws Make Eaeape.
Patrolmen Simpkins and Skoglund
of the east side station, scouting for
l Concluded on Page 2. Coisjmn 2.)
THE
:
Legal Advice Asked as to Taking
O'Callagban Matter Out of La
bor Secretary's Hands.
WASHINGTON. , Jan. 7 Definite
indications had appeared tonight that
the state department might take into
its own hands without regard to the
department of labor the question of
admitting to the United States Dan
iel J. O'Callaghan, lord mayor of Cork
paroled by the labor department after
his arrival at Newport News as a
stowaway.
Conflict between the two depart
ments was foreshadowed yesterday,
brought out Into th open today and
accentuated tonight when it was
learned that Acting Secretary Davis
of the state department had called
upon that department's legal author
ities for advice on taking the matter
into his own hands. The state de
partment, it has been indicated,
favors deportat. of the lord mayor,
while the labor department has been
represented as favoring admission of
the Cork official.
The case of the lord mayor had
not been formally presented to the
state department tonight by the la
bor department, but the solicitor of
the former department was known
to be giving consideration also to his
department's power in case O'Calla
ghan is amitted by labor officials
to ask the department of justice to
Institute proceedings against the lord
mayor on the charge' of violating a
criminal statute by entering the
United States without a passport.
Secretary Davis also indicated dur
ing the day that the state department
had institute an investigation of the
reported statepient of Harry Boland,
secretary to Eamonn de Valera,
"president of the Irish republic," that
he, too, had entered the United States
without a passport, as a stowaway.
Mr. Davis said that the department
in addition had taken note of the-re-ported
advocacy ty Boland in a
speech yesterday in New York of a
'vendetta" by the Irish in every
country if England persisted in the
pursuit of its present course toward
Ireland.
There was a question, he said, as
to whether such a declaration did not
bring its author within the scope of
the immigration act of 1916 provid
ing deportation for aliens advocating
the use of force and violence against
the United States.
Fol
FROSTY NIGHT FORECAST
Temperature Expected to Rise on
Account of Coming Storm.
A drop in temperature to 32 de
crees, the freezing point, was pre
dicted last night by the weather bu
reau, though a storm which is ap
proaching" down the British Columbia
coast is expected to bring a modera
tion and rain today.
The Willamette river is falling
slowly, but steadily, and is expected
to go down more rapidly if fairly
ccld and fairly dry weather continues.
OUTCASTS CAN THEY COME BACK?
ill 'I III i mini I III! Will III Mi
i minium i mi i I i i mil i i
Golden Rule and Ten Command
ments Good Enough for Me,
Says Obdurate Illinois Man.
DANVILLE. 111.. Jan 7. (Special.)
"5how me a religion better than the
golden rule and the ten command
ments and I will give up," was the an
swer of Ernest Harrington, local mer
chant, when asked why he did not
Join his wife's church and end her
long fast, which now has lasted 40
days. Mrs. Harrington, at the close
of her 40th day of fasting, is growing
weaker and has sent for her pastor,
Rev. S. T. Payne, Eldorado, BL, but
declines to eat until her husband be
comes a member of her church. Har
rington asserts his religion is better!
that he does not believe in the shout
ing, crying religion and is content
with being honest, square and moral.
Harrington appealed to the state's
attorney"" for help, but was advised
that the county is powerless.
"When the British empire was un
able to force MacSwiney to partake
of food how can you expect one small
county to get results?" the county
prosecutor queried.
Meanwhile the husband expresses
confidence that she will soon break
her fast.
"She is getting to a point where
she will have to do something. I have
lived with her for 18 years and I
never yet knew her to go through
with anything," said Harrington as
he turned to answer a telephone call
from Mrs. Harrington's mother, who
advised him that the hunger striker
was growing weaker and her heart
action slowing up.
"Tell her to eat some milk and
crackers' or some rrilk and water
that will do her more good than
prayer or anything else," he told the
mother-in-law, turning to wait on
customer and ending the interview.
QUAKE RAZES MOUNTAINS
Dead 600, Homeless 30,000, Vil
lages Destroyed 15 in Disaster.
PARIS, Jan. 7. Dispatches to the
Albanian authorities today indicate
that the recent earthquake disaster
in the Elbassan district was far more
serious than shown by earlier re
ports. Elbassan was almost com
pletely razed.
Near Tepellnl, which Is about 50
miles south of Elbassan, mountains
crumbled away.
-Six hundred persons were said to
have been killed, IB villages destroyed
and 30.000 per-ODS have been made
homeless.
WAR SEIZURES AFFECTED
Bill to Restore Property Taken
From Germans Is Drafted.
WASHINGTON, Jan. 7. Senator
King (democrat, Utah) completed to
day a bill proposing to restore to
German citizens all property taken
over by the alien property custodian
during the war.
He plans to introduce it Monday.
New Congressional Dis
trict Brews Trouble.
DISSECTION ALREADY NOTED
Re-apportionment of State
Another Moot Issue.
EVERYONE IS AMBITIOUS
Oregon Solons Want New Repre
sentative Assigned in Keeping
With Personal Aspirations.
Political storms of the approaching
legislative session will center around
two things: creation of a new con
gressional district and reapportion-
Iment of legislative districts. Signs
of this coming storm were dlspiayea
yesterday when out-of-town lawmak
ers began assembling and canvassing
the situation.
There will be other subjects which
will cause dissention, but the fotfrth
representative in congress, awarded
Oregon, and the revision of the legis
lature will be something in which
every member will be keenly affected.
There is a sort of gentlemen's
agreement between the Eastern Ore
gon delegation and some of the active
leaders west of the Cascads In respect
to organization and sundry measures,
but the two outfits threaten to split
apart over the reapportionment and
the representatives in Congress.
Grasping Attitude Charged. '
The Eastern Oregon contingent,
which also means the Central Oregon
legislators, are considered too grasp
ing by the Western Oregon senators
and representatives.
"If there is to be a representative
or a senator juggled out pf his place,
the Eastern Oregon buncli .want to
grab that vote," complained asenator
from the Willamette valley who is
otherwise on good terms with the
men east of the mcjjntains. "They
want .everything in sight and are very
rapacious.""
In the first place, consider the
members who- are known to cherish
ambitions to serve in congress' They
constitute nearly 10 per cent of the
total membership, and no less than 20
per cent of the 30 members in the
senate are mentioned as possible con
tenders if things work out right. With
10 per cent of the members each
nourishing a fond hope to go to con
gress, it is apparent that this large
proportion will be decidedly active
looking after their own chances
when the redisricting comes up.
Congressional Bee Buzzing.
Among the senators, those strongly
suspected of entertaining congres
sional thoughts are President Bitner,
Jay Upton, A. W. Norblad. W. G. Hare.
Charles M. Thomas. B. L. Eddy and
Louis Lachmund. In the house.
'Speaker Bean. K- K. Kubli ad Ben
C. Sheldon are under suspicion. By
the time the legislature is in action
for a few weeks, some of the mem
bers now serving their first terms
will probably have a hunch that they
should serve the state at Washington,
for the congressional bee generally
stings legislators.
Friends of Speaker Bean are sug
gesting that the new congressional
district should ' be carved from the
first congressional district; that a
line be drawn south of Salem. This
would place populous Lane and Linn
counties in the new district, and Mr.
Bean is strong in Linn and Lane and
should be able to overcome any fight
put up by Senator Thomas in the
southern part of the district.
Senator Upton Has Idea.
Senator Upton's idea is to make a
new district out of Hood River, Was
co, Columbia, Clatsop and Multnomah,
outside of Portland, according to re
ports. This would leave Represen
tative Sinnott high and dry a'nd strip
from him all of his present district
except Wasco and Hood River.
Senaftor Upton, President Ritner,
and other of the ambitious ones of
Eastern Oregon, figure that while the
district remains as it is Nick Sin
nott can be sent back to congress as
many times as he wants to go; er
one way of direct action is to lop off
all counties but two in Mr. Sinnott's
(-present district and add these twa to
counties in which he is not personally
acquainted. Having thus placed the
skids, so to speak, under Mr. Sinnott
in Eastern and Central Oregon, the
boys with the ambitions will try their
luck.
The ideal district as contemplated
by Senator Norblad should comprise
the maritime counties. tie wouia
like to see a district right down the
coast, his argument being that the
coast counties have identical inter
ests of harbor development, fishing,
timber and dairy resources.
District At Large Wanted.
A sentiment is growing for a rep-resentative-at-large,
which will stop
all such schemes. Some of the pol
iticians outside of Multnomah
county complain that -with a repre-sentative-at-large
in congress Mult
nomah would get the representative
and. anyway, if a candidate has to run
at large for representative he might
as well run for. United States senator,
for one wouls require as much cam
paigning, as the other.
If the congressional ' matter will
stir up trouble, it will not be a patch
Concluded oa Pago S, Column 4,j
Resolution Directing Cessation of
Recruiting Is Favored AI-o
by President-Elect.
WASHINGTON, Jan. 7. -Unanimous
favorable report was ordered today
by the senate military committee on
the resolution of Senator New, repub
lican, Indiana, directing the secretary
of war to stop army enlistments until
the total number of enlisted men is
reduced to 175,000.
MARION, O., Jan. 7. The plan of
republican leaders in congress to limit
the peace-time strength of the army
to 150,000 men received approval today
from President-elect Harding In a
conference with Representative ICahn
of California," chairman of the house
military committee.
Other questions were talked over by
the president-elect with Andrew W.
Mellon of Pittsburg, publicly indorsed
by Senator Penrose of Pennsylvania
for secretary of the treasury.
E. Finley Johnson, a member of the
supreme court of the Philippines, and
Clarence B. Miller, secretary of the
republican national committee, were
among other callers.
SHIP SETTLEMENT URGED
Builders Press Claims Aggregating
Six to Eight Millions.
WASHINGTON, Jan. 7. Represen
tatives of the emergency wood ship
building association asked the ship
ping board today to settle claims ag
gregating between $6,000,000 and
SS.000,000 growing out of cancellation
of wooden ship contracts after the
armistice.
Appearing at an open hearing,
spokesmen for the wooden ship
builders declared that the Jones act
conferred upon the board the powers
formerly held by the president to
ke jurisdiction of such matters and
John B. Fay of Boston declared thf.t
if the board did not act the wooden
shipbuilders would be forced into
bankruptcy.
ALADDIN ADOPTS HARDING
President-Elect Jlade . Member of
Mystic Shrine at Columbus.
COLUMBUS. O., Jan. 7. With 250
other candidates, President - elect
Harding tonight became a member
of the Mystic Shrine.
Following the ceremonies. Senator
Harding presented the Aladdin tem
ple band, composed of local Shrinera.
with a srtlVer cornet which he played
in his hometown band as a boy. He
received membership in the Aladdin
Country flub, a local organization
made up of Shriners only.
MARCH T0AID PERSHING
Major-General to Be Chief of Staff
at Inaugural.
WASHINGTON, Jan. 7. Major
General Peyton C. March, chief of
staff of the army, will act as chief
of staff for General Pershing, grand
marshal of the inaugural parade here
March 4.
At General Pei3hing's invitation
also, Major-General Peyton C. Harris,
adjutant-general of the army, will
serve as adjutant-general of the
grand marshal.
INDEX OF TODAY'S NEWS
The Weather.
Ortgon Rain.
Portland and Vicinity Rain.
Foreign.
American-British agreement would solve
disarmament problem, say London pa
pern. Page 3.
Communists lose their grip on Germany.
Page 3.
Dublin castle announces plan to destroy
Sinn Feiners' homes. Pase 2.
National.
Opposition to Johnson immigration bill de
velops amazing proportions in senate.
Page 1.
Coal profiteering charged in senate.
Page IV.
Government charged with gross negli
gence of soldiers menially afflicted.
Page 1.
State department may oust lord mayor of
Cork. Page 1.
Senate committee shelves tariff to wrangle
over price reductions. Page, 4.
Conviction of Senator Newberry gross per
version of law, nays Mr. Hughes. Page 1.
Duta on all navies of the world gathered
by United Slates. Page 6.
Domestic.
High price of lumber laid to speculator.
Page 2.
Woman fasting to get husband lato church
Is reported weakening. Page 1.
Pacific Northwest.
Attack on primary law- in Washington pre
dicted. Page 5.
Adjutant-General White asks for federal
permission to round up draft dodgers
In Oregon. Page 4.
Sports.
Multnomah and Oregon quintets meet to
night in first big clash of season.
Page 12.
Offer of $300,000 and four players made for
HornBby. Page 12.
Hopes are Devere wi!l not flivver in bout
with 1-angrora. page 1st,
Commercial and Marine.
Sentiment in wool market Is more hope
ful. Page- 19.
Chicago wheat unsettled by Argentine and
Australian crop figures. Page 10.
Liberty Issues strong feature of bond mar
ket. Page 18.
Shipping board cuts rates to Europe.
Page 18.
Line reduces calls to north Pacific. Page 18.
Uniform port fees favored In Seattle.
Page 4.
.Portland and Vicinity.
Miss Franklin to. be paid for care of aged
Mrs. Louis Humphrey-Smith. Page 10.
Solution of irrigation problem next task
of congress in session here. Page 20.
Bond bouse receiver may ask for Income
tax rerund. Page 1. "
Franks. Grant Is elected city attorney by
municipal council on second ballot
Page 11.
Omens of storm hang over legislature.
Pase 1.
Case of American Soda works precipi
tates war. Page 10.
Two robbers steal taxi, mo garage, battle
folic, and escape. Page L
MONEY HELD DUE CREDITORS
Audit Declared to Show No
Levy Was Due From Firm.
ETHERIDGE WILL TALK
LaRoche Expected to Issue Public
Statement Revealing All De
tails of Business Ruin.
In his quest for additional assets
of Morris Bros., Inc., wrecked Port
land bond house. Receiver Whltcoinb
will carry the search to Ihe-income
tax returns of the firm for the pre
vious year, holding that any money
so paid to the government should be
refunded for the benefit of creditors.
Inasmuch as the audit shows that
for some time past the institution has
paid no profits.
"It is' possible," said Rece'ver
Whitcomb, discussing this phase of
his attempt to protect holders of in
terim certificates, "tltat the firm paid
a substantial income tax. I am inves
tigating the income tax returns ren
dered by Morris Bros., Inc., to see
whether they have overpaid, in view
of the process of the audit, which
discloses that the firm should not
have paid an income tax, at least
of any considerable amount. If we
find that it has, steps will be taken
to procure the overpayment and the
United States government wifl be
asked to refund."
Developments Are Laggard.
Developments in the cso of the
wrecked bond firm, and of Its presi
dent, John L. Etheridgc, held under
heavy bond. lagged yesterday,
though the fact that W. P. LaRoche
had resigned as city attorney to un
dertake the Etheridge defense still
gave rise to much conjecture as to
the nature of the plea that will bo
made in his behalf.
It was understood that Mr. La
Roche, after several searching con
ferences with his client, will issue a
public statement, outlining the de
fense and the part that both Ether
idge and Fred S. Morris, ex-president,
who reassumed control recent
ly, played in the tangled affairs of
the bond house.
The declaration that Etheridge
would present all the information In
his possession, ju an' endeavor to
clear up the events that led to the
wrecking of the concern, was. reiter
ated yesterday when Mr. LaRoche, as
his counsel, talked with. Harrison
Allen of Griffith. Letter & AloLk at
torneys for the receiver.'
Whole Story to Be Told.
Thi defense counsel declared that
his client would tell the entire story,
without reservation or subterf age.
The promise is generally Interpreted
as signifying that Morris' connection
with the firm, after his ostensible
resignation, will be clarified.
"Mr. LaRoche said that Etheridge'
would give all the information in his
possession," announced Mr. Allen,
"without hope or expectation of
either present or future Immunity or
reward."
Upon presentation of an order from
Fred S. Morris, judicially approved.
Receiver Whitcomb gained possession
yesterday of the 375.000 in bonds ex
pressed by Etheridge to the firm from
Tacoma on the night of his departure
for the east. These bonds were pre
viously listed among the assets, but
were held by the sheriffs office fol
lowing their seizure upon arrival in
this city.
Kvans Cited to Appear.
At the request of the receiver Fed
eral Judge Wolverton has issued an
order of District Attorney Evans, cit
ing him to appear on the morning of
January 14 and show cause why 31200
in cash, with certain other valuable
securities, taken from the person of
Etheridge, should not be turned over
to the receiver without further delay.
Etheridge himself has requested the
return of the money to defray hli
oersonal expanses, but it Is the con
tention
. n.lAr WhlfnmH that
tention oi
the final dollar of assets shall be se
cured tor tne creunuia.
to the J1200 in treasury notes, the
district attorney holds one certificate
of capital stock in the Columbia
County bank of St. Helens and onn
liberty bond of 3500 denomination.
Thousands of lettej-s have poured
in upon the receiver since bankruptcy
proceedings were instituted, largely
frcra holders of unsecured Interim
certificates for the Edmonton bonds
the financial rock upon which the
bouse crashed.
Volume of Inquiry Vast.
So vast has been the volume of
inquiry that Receiver Whitcomb Is
now sending out -blank forms 'and
alfidavits to holders of interim cer
tificates, together with a form letlei
quoting the bankruptcy law and ad
viting creditors how, where and
when to file their claims.
To date the total expense of the
audit by the receiver has been 32100.
v.hlle the estimated monthly expense
hereafter, for salaries and rental, will
not exceed 32395. Certain unforeseen
incidental expenses will be incurred,
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