9
is
VfiT TV n IS COO Entered t Portland (Oregon)
ui liA J O.OU.J Postoffiee cp Beond-Cles MMter
PORTLAND, OREGON, FRIDAY, MARCH 4, 1921
PRICE FIVE CENTS
L
2 SUBMARINES SEND
TARIFF IS KILLED
BUSINESS IS AT WAR
WITH SHRILL SINGERS
DOWXTOWX MUSIC STUDIOS
FACE EXCLUSIOX.
REPEAL OF WAR ACTS
EDITOR SAYS FORD'S
MEN KIDNAPED HIM
WRITER WHO DISAPPEARED
APPROVED BYWILSON
RUSH CALL FOR AID
QUITS,
E
1
f'
PRESIDENT SIGXS RESOLUTIOX
KIIXIXG MAXY STATUTES.
OXE IS REPORTED ASHORE
FEB. 13 IS IX TOROXTO.
AXD OTHER IX DISTRESS.
MONET
TEUTONS
FURTHER GERMAN
HON LOOMS
ON
REG
WAITS
BYWILSON S VETO
1
'J
Books Are Balanced After
Eight Eventful Years.
HARDING SET FOR INAUGURAL
Capita! Quiet and Politicians
Mourn "Old Times."
PRESIDENT TO TAKE RIDE
JTation's Outgoing Chief Executive
Insists on 'Witnessing Entire
Ceremony of Day.
WASHINGTON. I. C, March 3.
After eight eventful years in author
ity, the democratic administration of
rVoodrow Wilson closed up Its books
today and rested to await the termin
ation of its tenure at noon tomorrow.
While the final balance was being
Tuck by the outgoing officials. War
ren G. Harding, republican president
elect, came to Washington, gave his
approval to the simple inaugural
preparations, completed formally his
cabinet and finished his part of the
Inaugural preliminaries by going to
the White House for. a call of cour
tesy on Mr. Wilson.
In contrast to the usual holiday
turmoil of Inauguration eve, the
streets of the capital reflected only In
a mild degree the complete rearrange
ment about to be made in the na
tional government.
Capitol Dome Lighted.
Flags and bunting were hung out
In recognition of the pending event
and tonight the dome of the capltol
building was illuminated for the first
time since the celebration of the
armistice.
In accordance with Mr. Harding's
desire, tomorrow's inaugural cere
monies will be far ttie simplest of re
cent years. Four troops of cavalry
will escort .the president and president-elect
to the capitol, but no pa
rade will be permitted and there will
be little of the panoply of former in
augurals. Just -what 'part President Wilson
will play in the day's programme -remained
in doubt. Although his health
makes it difficult for him to move
about, he has prevailed upon his fam
ily and medical advisers to permit
him to follow the custom of riding
down Pennsylvania avenue with his
successor. He hopes to . witness the
ntire ceremony.
Wilson Insists oa Ride.
Dr. 'cary T. Grayson, White House
physician, is understood to have urged
that Mr. Wilson's part be limited to
the ride to the capitoL In this stand
he is said to have had the backing of
Mrs. Wilson but not of the president.
The result was that the inaugural of
ficials prepared several alternating
plans.
Mr. Harding called at the White
House late today after the president
elect had conferred with Senator
Knox and several other party leaders.
Mr. and Mrs. Harding were received
by Mr. and Mrs. Wilson In the green
room and after tea the four remained
20 minutes chatting largely of the
household affairs of the executive
mansion.
The spec'al train which brought the
Hardings from Marion arrived at 1
P. M. and was met by a crowd of
. p- M. and w
V'Vj several hundr
' chief executiv
'," J of the land
dred who cheered the next
ve and the next first lady
of the land as they climbed Into a
White House automobile. They drove
to the New Willard hotel. A few
knots .of people chetred them down
Pennsylvania avenui.
Callrra Crowd Hotel.
At the hotel a stream of calleis.
Including many members of the re
publican national committee, now in
session here, poured In to pay their
respects. One conference was with
James J. Lavis oi r.uuurs,
election as secretary of labor Mr. I
Waraing naa uniiuuiiicu iui many
today.
Later inauguration plans and the
legislative situation confronting
congress in its closing hours were
discussed by Mr. Harding with
Senator Knox, Harry M. Daugherty,
who is to be attorney-general; John
W. Weeks, selected for secretary of
war, and Senator Lodge of Massachu
setts, republican leader of the senate.
At 4 o'clock the president-elect and
Mrs. Harding made a short call of
sympathy on Mrs. Champ Clark.
Correpoadents Invited In.
Just before his call at the White
House Mr. Harding received the
Washington correspondents,
telling
them he had made the Davis appoint
ment not because he had any news
to give, but because he wanted to
begin his friendship with them while
he still was nothing more than a
member of their own profession. H
assured them they always would be
welcome at the executive mansion and
declared that all he asked in his
relationship with them was an appli
cation of the golden rule on both
sides.
Tonight the president-elect and
Mrs. Harding were entertained at a
private dinner given by Carmi Thomp
son of Cleveland, former treasurer of
he United States and an official of
he republican speakers' bureau dur
ing the last campaign. The guests
included Governor Davis, Senator
Willis, Harry M. Daugherty and a
score of others from Ohio.
Besides the selection of Mr. Davis
(.Concluded on Tag 4, Column I )
Coast Guard Cotter Stands Along
. side 0-8; Trouble With 0-7
Is Xot Known.
. NEW TORK, March S. Two sub
marines, 0-7 and 0-8, reported by
wireless tonight that they were in
need of Assistance.
The 0-8 Is ashore between Penlkese
and Gull islands In Buzzard's bay,
and the 0-7 Is In distress about three
miles east of Race Rock, Wilderness
Point, In Long- Island sound. Her
trouble Is not known.
The 0-8 had gone ashore about one
mile from the Cuttyhunk coastguard
station, the message said. A' coast
guard cutter was standing alongside
and she was expected to float at mid
night. The message indicated the
submarine was In no immediate dan
cer. A message from the 0-7, which was
picked up by amateur wireless opera
tors, read: "How long will it take
for assistance? We need help at
once."
The message was addressed to the
navy-yard here and was relayed to
the destroyer Gresham, anchored at
Tompkinsville,- Staten Island.
Race Rock, near which the 0-7 was
reported in distress, is on the north
east side of The Race, the main en
trance from eastward in Long Island
sound. The Race is marked by light
houses on Race Rock and Little Gull
island, between which it has a width
of three and a half miles.
A wireless message to the 0-7,
picked up here, said eagle boat No.
33, from New London, Conn., was go
ing to her assistance. The 0-7 re
plied in a message that no additional
help would be needed. This was taken
to Indicate that neither the submarine
nor her crew was in immediate
danger.
14 SACKS OF MAIL STOLEN
Two Men Handcuff Driver of Truck
and Clerk Escapes.
LOS ANGELES, Cal.. March 3.
Fourteen sacks of registered mail
were reported to have been stolen
when a United States mail wagon was
held up here tonight.
The wagon, in charge of a driver
and a postal clerk, was being driven
from the main postoffice to the Santa
Fe railroad station. At a railroad
crossing two men rushed from .an
automobile standing at the curb,
jumped to the drivers' seat and hand
cuffed the driver and clerk togeth
er. They then tumblad,. the mail
sacks into their automobile andidrove
away.
OIL PROFITS $40,973,484
Standard Company Makes 2 0 Per
Cent on Actual Investment.
CHICAGO, March 3. A net profit
of 340,973,484 after deducting income
taxes, or 20 per cent on actual invest
ment, was earned by the Standard
Oil company of Indiana for 1920, ac
cording to the annuel report 'submit
ted today. Without Income tax deduc
tions, earnings were 361.377,803. A
reserve of 320,404,319 is made to meet
estimated income taxes for 1920.
As against the capital and surplus
January 1. 1920. of 1135,117,256, the
company reports capital and surplus
December 31, 1920, of 3203.869,123.
FRENCH EX-MINISTER DIES
Promoter of Dreyfus Prosecution
in 189 1 Passes Away.
PARIS, March 3. General Auguste
Mercier, former French minister of
war, died today. As war minister he
Instituted proceedings agaityst Cap
tain Dreyfus before the council of war
in 1894, which condemned Dreyfus to
life-long penal servitude and public
degradation.
The sentence afterward was Re
versed and Captain Dreyfus was ex
onerated on retrial.
STORAGE BILUS PUSHED
Prospect for Passage of Measure
Reported Improved.
WASHINGTON. D. C. March 3
prospect8 for enactment of the coid
storage regulations bill Increased
today, the senate conferees yielding
on provisions which the house
opposed. '
The principal change was to pro
vide that products may be held in
coid storage for a "free period of
30 days without being labeled."
WOUNDED AGENT MAY LIVE
Bullet Removed From Prohibition
Officer Shot Jn Fight.
EL PASO, Tex., March 3. Ernest
W. Walker, prohibition officer who
was wounded yesterday when officers
and smugglers fought a two-hour
battle on the bank of the Rio Grande
a mile from the heart of the city, has
a chance to live, according to physi
c'ans who operated on him today.
A bullet was removed from Walk
er's abdomen.
WORKERS MEET MARCH 9
Packing House Employes to Con
sider Working Contracts.
OMAHA, March 3. Packing com
pany employes from every packing
house center in the United States are
expected to attend a conference to be
held here next .Wednesday.
At this conference the reported
plan of the packers to discontinue
working contracts with their work
men will be d'scussed.
House. Move to Override
President Fails.
VOTE RESULTS 201 TO 132
Message Terms Interest in
: Revenues Slight.
SHORT WAY OUT DENIED
Executive Declares Legislation on
Which He Used Ax Could Xot
Have Helped Out Farmers.
WASHINGTON, D. C, March 3.
The Fordney emergency tariff bill
was vetoed late- today by President
Wilson.
Efforts to override the. veto failed
in the houee early this morning and
the measure, originally designed to
aid the farmers, thereby met its
death.
The vote on the motion to pass
the measure over the president's veto
was 201 for and 132 against.
This was 21 votes less than tht
necessary two-thirds.
The veto was called up and voUd
on without discussion.. ioere-u
little expectation among republicans
that they could round up . the two
thirds vote necessary to override the
veto, and it was for this reason that
some leaders i had urged Chairman
Fordney of the way and means com
m'ittee to let it "lie on the table with
out action.
"The situation In which many of
the farmers find themselves cannot
be remedied by a measure of , this
sort," the president said. ,
Short Wif Out Denied. . '
"There Is no short way out of ex
isting conditions, and measures of this
sort can only have the effect of rais
ing false hopes among tbera."
The president said the measure "has
only slight interesfso far as its pros
pective revenue yields are. concerned,"
and ' declared that the rates estab
lished in the bill "either equal or
exceed those established under the
Payne-Aldrich , act, in which the
principle, of protection reached ta
high-water mark and the enactment
of which was followed by an effec
tive exhibition of protest on the part
of the majority of the American peo
ple." Veta Mnn Is Seat.
The text of President Wilson's veto
of the Fordney emergency tariff bill
follows: "
The house of representatives: I re
turn without m- approval house bill
15275. an . act imposing temporary
duties jn certain agricultural prod
uces to meet nreent emergencies, to
(Concluded en Page 3. Coiumn 1.)
AND THEN
1 v ... ;m(
Musicians Are Up In. Arms and
Ready to Fight Ordinance at
Hearing Wednesday.
Music may have charms to soothe
the savage breast, as an olden poet
phrased it, but not even the strains
of "Deep River" will quell the dissen
sion that Is certain to arise over
recently-proposed city ordinance re
specting musical studios of the down
town district and seeking to .impose
restrictions on the range and velocity
of melodies made there.
Arrayed in opposition are the sev
eral hundred musicians of the city
and the building .owners' association.
which advocates the ordinance. Vocal
or instrumental, the sentiment of the
former is that a legitimate profession
shall not be hampered. .
Two stories or ten, the fixed opin
ion of the latter is that the musical
product should be impounded. There
are certain penetrating notes that
but this anticipates the origin of the
ordinance which would seal all stu
dios with double windows, whether
spring. is calling or winter is blowing
a gale. . ..
"So far as we have been able to
learn" said Joseph A. Flnley, chair
man of the Musicians' club of Port
land, "the proposed ordinance Is the
result of a rather unusual incident.
Adjoining the Northwestern bank
building, as you know, is- the Bush &
Lane building, where there are a
number of studios. It Is probable
that vocal lessons in these studios
are sometimes wafted to the tenants
of the office building, just as the
noises of the .street are borne.
"There was, so we are told, a rather
important business 'deal on In an of
fice of the Northwestern bank build
ing. It involved the exchange of a
large sum, and the purchaser was
about to sign on the dotted line when
a singer across the way struck a high
note and held it. He frowned, wavered
and resumed the discussion, -laying
aside the pen. A few moments later
he was again ready to sign, when
the same note rose to the ninth story
and drifted in. The current version
s that he grabbed his hat and rushed
out, never returning, Naturaiiy mis
incident, if it has been correctly re
lated, inspired the present attack.
'I see," continued Mr. Fjnley, -tnat
they have fixed a oU-ipot oisiance
limit. They know very little about
vocal music Yes, they know less
than our Rover does. I can summon
a vocalist or two whose high notes
will lift their hair at 100 paces.
The proposed ordinance, which wil
be made a special order of business at
next Wednesday's session of the city
council, provides that any room where
vocal or Instrumental music lessons
are given, if within 60 reet of any
hotel, apartment house or office build
ing, shall be required to install double
windows, with an air space between,
ard that these shall be closed while
the student woos the muse. Consider
ation of the ordinance will also be
made a special o.der of business at
the meeting Of the Musicians' .club
next Monday, when plans will be
(Concluded on Pae 2. Column 1.)
THERE WILL BE HARDER WORK
;
Four Sleasures, Among Them One
Saving National Park Water
From Exploitation, Signed.
WASHINGTON, D. C, March S.
President Wilson has signed the res
olution to repeal virtually all the war
laws.
The announcement came from the
White House tonight
The president also approved today
four additional appropriation meas
ures the Indian, legislative, execu
tive and judicial; agricultural and
fortification bills. The army bill
was the only appropriation measure
before him.
The president also disposed tt a
number of miscellaneous legislative
measures, 'including the bill to ex
tend for 25 years the oil leases held
by the Osage Indians; the bill- ex
tending the time permitted foreign
ers to file patents in the United
States, and the amendment to the
waterpower act, exempting national
parks from water leases and privi
leges. The war law repeal resolution re
peals practically all of the laws en
acted during the war as strictly
emergency measures. The acts re
pealed Include the Lever food and
fuel control act, and the espionage
act of 1917. The trading with the
enemy and liberty bond acts, and the
statute creating the war finance cor
poration, are exempted.
Other measures before the president
in addition to the army bill Include
the measure to restrict Immigration
and the bill appropriating S18,000,p00
for hospitalization of former serv
ice men. -
STANFIELD JN CAPITAL
Senator-Elect Introduced in Both
.Houses of Congress.
THE OREGONIAN NEWS BUREAU,
Washington, D. C, March 3. Senator-elect
Robert N. Stanfield, ac
companied by his secretary, E. J.
Adams of Eugene, Or' reached Wash
ington today and passed the after
noon In the senate and house, meeting
his future colleagues In congress.
He was Introduced In the senate by
Senator McNary, while in the house
Representatives McArthur and Hawley
took turns in presenting their new
senator. His office, as matters .ap
pear now, will probably be Imme
diately adjacent to the suite now oc
cupied by Senator McNary in the
senate office building. '
SACKS FOUtfD, CASH GONE
First Clew In Connection With
$50,000 Robbery Discovered.
OAKLAND. Cal., March 3. -The first
tangible clew which federal and local
investigators have found In connec
tion with the 350,000 robbery of a
United States mail truck Tuesday
night came with the finding today of
the six stolen sacks.
All of the first-class mail contents
of the sacks was intact, but the regis
tered mail had been taken.
TO DO.
. . . , 4
State of Treasury Acute;
Indemnity Issue Grave.
HARDING TO ACT QUICKLY
France Firm for Helpless Ger
many; Foe Reviving.
SPRING INVASION LOOMS
-Many Relieve Thrust by Paris Will
Xot Be Attempted, AVhile Mil
itarists Predict War.
BT MARK SULLIVAN".
(Copyright by the' New York Evening Post,
inc., ruDiisnea oy Arrangement.)
WASHINGTON, D. C, March 3
(Special.) The two questions which
President Harding and his cabinet are
going to take up under the pressure
of immediate urgency and without
the breathing spell of a day, are the
effect on us of the London confer
ence, now sitting, and the state of the
treasury, which is more acute than
the public realizes.
I have been at pains to consult
nearly, all the men in America who
have authoritative information on
what is likely to be the outcome of
the London conference,' and while the
opinion of some is sensationally
alarmist, the net of their beliefs Is
that the outcome will not entail an
immediate Invasion of Germany by
France.
It is not ftie amount of the repara
tions that constitutes the crisis for
America. It is not primarily for the
purpose of collecting money that the
invasion of Germany is wished for by
many of the French leaders and prob
ably the bulk of the French people.
Helpless Germany, France's Aim.
Every economist and business man
knows that as a matter of dollars and
cents the Invasion would be unprof
itable. The Invasion would cost two
dollars for every dollar the invaders
can collect. What moves ...France
primarily is the wish to make Ger
many helpless. As it was explained
to me by one of the most thoughtful
American authorities, "the crjjx of
the matter is that France no longer
has seourity against a revivified Ger
many and until she has it she will not
be inclined to let Germany begin to
recuperate."
'That and not money Is the heart
of the situation. The same American
went on to say, "In this I am in full
sympathy with France. England and
the United States should guarantee
France against future attack. If
Briand fails at London and Poincalre
succeeds him, the French I think,
will take immediate military action."
This last, of course, raises the
broader and more permanent ques
tion of a league of nations or -association
of nations. But the thing
of immediate concern is the conse
quences to the United States and to
the world of an invasion of Germany
by the French. The effect on Amer
ican business of an action designed
not to "let Germany begin to recup
erate" is obvious.
Invasion in Spring Likely.
Those of the American authorities
whom I have consulted, whose con
nections are military, tend to believe
that the invasion will take place and
will be initiated as early in the spring
as the roads are good enough for ac
tion. The other question that has the
quality of an emergency demand on
the energies of the new administra
tion is the plain business of paying
the country's bills. Thoughtful per
sons in contact with this branch of
the government's business are of the
belief that on the fifteenth of this
month, when the tax returns for last
year are in. It will become apparent
that the country's revenues will be
but little more than two-thirds of
what they were last year and will be
about the same fraction short of
enough to pay the current bills of
this year.
It if expected that the returns from
the excess profits tax will fall below
what they were last year. Some go
so far as to predict that the returns
from the excess profits tax will fall
close to zero.
lacome Tax Also May Drop.
The corporations have the privi
lege of deducting from their profits
all of that enormous depreciation in
tie value of their stock on hand
which took place just before the end
of the tax year. The same authori
ties believe that for the same and
other reasons the income tax returns
will be seriously curtailed.
These are the two outstanding
problems which, the new administra
tion will have to, take up at the open
ing of business tomorrow morning.
The list .' other problems, which are
of enormous importance but of less
pressing emergency, is, of course, ex
tremely large.
Xo War, Japanese Are Told.
HONOLULU, T. H., March 3. (Spe
cial.) There will be no war between
the United States and Japan, accord
ing to a statement made by C. Tada,
consul-general from Japan to Hawaii,
at a meeting of the Japanese students
of the University of Hawaii in con
nection with a talk on the dual na-
tlonality problem. ,
Head of Hebrew Publication As
serts He Was Captured and
Carried Over Border.
TORONTO, March 3. Henry Pot
ter, editor of a Philadelphia Hebrew
paper, which has been attacking
Henry Ford for alleged anti-Semitism,
and who recently was reported
to have disappeared while seeking to
interview the manufacturer, arrived
at police headquarters here today
'with a story of having been kidnaped
by three men on Mr. Ford's estate
near Detroit.
To' the police and newspaper men
he said that on the night of February
13, after two attempts to see Mr.
Ford, he visited his estate and was
seized by them; that he wa driven
away In an automobile and threat
ened with death after making sev
eral attempts to escape; that he was
taken from Detroit across the border
Into Windsor; that he was Informed
he was being taken to Cochrane,
"never to go back to the states
again," and that finally he escaped
from his captors at West Toronto
station.
At the time of Potter's reported
disappearance Mr. Ford was first to
order a search made for him, fear
ing he might have fallen through the
ice on a pond on his estate. The
search was discontinued after it was
reported that friends had received
telegrams from Potter several days
after he dropped out of sight.
SALMON DEAL DENOUNCED
Prosecution of Dealers Who Bilked
Government Urged. i
WASHINGTON. V. C. March 3
Jlecommendat'cnr that the depart
ment of justice Institute criminal pro
ceedings against dealers who in 1918
sold the war department 5.000,000
cans of salmon held by government
experts to be unfit for human con
sumption are contained in a majority
report filed today by the house war
Investigating committee. The demo
cratic members of the committee pre
sented a dissenting report.
The majority report condemned the
war department fr:r falling to take
steps looking to the prosecution of
the dealers, condemned the latter for
selling the salmon, attacked the con
tract covering the sale and also rec
ommended that the department of
Justice determine as to the possibility
of recovering an additional sum un
ite r the contract.
CHECK ARTIST ARRESTED
Gordon Xclson, 2 3, Caught
at
Klamath Falls, Confesses.
KLAMATH FALLS. Or., March 3.
(Special.) Gordon Nelson, 23, who
registered at a local hotel from Hono
lulu, was arrested this morning on
request of Oakland police, who charge
him with passing 1800 worth of bogus
checks. In Nelson's baggage offi
cers said they found 81800 worth of
forged checks ready for passage here.
Nelson is said to have confessed to
the Oakland charge and agreed to
waive extradition. ,
INDEX OF TODAY'S NEWS
The Weather.
YESTERDAY'S Maximum temperature, 55
decrees; minimum, 40 decrees.
TODAY'S Fair; westerly winds.
Foreign.
Germans face further occupation unless
acceding to reparation demands,
rase 1.
Editor of Hebrew publication says ho was
kidnaped on iienry r ord s estate.
Face 1.
National.
Wilson regime quits and awaits last hour.
Page 1.
Tariff is killed by Wilson's veto. Page 1.
Navy bill doomed; congress kills scores of
measures In closing Hours, rage z.
London Indemnity conference and state of
United States treasury shaping Lnlleo
States crisis. Page 1. '
Harding promises newspsoer correspond
ents plenty or news, rage
House of representatives pay unusual trib
ute to Champ Clam, rage 4.
Wilson, with Colby, will practice law after
retiring as president. rage 4.
President Wilson signs congressional reso
lution repealing many war laws. Page 1
Domestic.
Plight of refugees In Poland described as
pitiful, rage 10.
Corsets will survive all dress reforms
Page 8.
Train dispatchers" strike II spreading.
Page
Two submarines send out rush call for aid.
Page 1.
Pacific Northwest.
Fred P. Kendall appointed to fish com
mission. Page S.
State Institution buildings to cost 1380,000
to be erected this year. Page S.
School code falls by 21 to 19 vote. Page 7.
Idaho legislature In jam as time to ad
journ approaches. Page 7.
Sports.
Tiger training camp series to start Mon
day. Page 14.
Multnomah athletes beat Washington In
dual meet. Page 14.
Commercial and Marino.
Large quantity of Portland stored wool
will be shippea 10 ausiiuc seaooaro.
Page 23.
Chicago wheat strong and higher owing
to ultimatum In Germany. Page 23.
Stock trading and price changes narrow.
Page -23.
Cut In rates declared aid to lumber In
dustry. Page 22. ,
Six thousand tons of wheat booked for
Europe. Page 22.
Portland and Vicinity.
Republicans anxiously await distribution
of Oregon ieaerai paironnse. rage 0.
Sleuth In Hedderly killing on trial Mon
day. Page 12. "
Six persons In every 10 morons, says Dr.
Vlets. Page 13-
Chamberlain leaves senate todsy after 12
years of service there for Oregon.
Pago 8. 1
Europe and railroads big gloom factors in
financial world, says A. L, Wills.
Page 1J.
City council hears row about sewer,
rage 1.
Few boys and girls now drive to school In
sutos, say principals. Page 22.
William F. McKenney elected exalted ruler
of Portland lodge of Elks. Page .
Business men declare war on thrill down
town singers. Page 4
Ultimatum on Indemnity
Expires Monday.
NEW TAX IS THREATENED
Customs' Boundary Along
Rhine Also Considered.
PERIOD TO PAY N0t CUT
Lloyd Georje nolds Counlcr Pro
posals Are in Defiance of
Treaty's Fundamentals,
LONDON, March 3. (By the Asso
ciated Press.) Germany today re
ceived until Monday noon to accept
the fundamental conditions laid down
by the supreme allied council at
Paris. The German delegates were
informed by the allied representatives
that if Germany does not accept
these termsthe allies will take Im
mediate steps.
The first will be the occupation by
allied troops of the cities of Dulsberg
and Duesseldorf and Ruhrort,
Second, each allied country will
place such a tax on German merchan
dise as It may deem proper.
Third, a customs' boundary along
the Rhine, under allied control, will
Le established.
Agreement Attempt Expected.
The British version of Dr. Simons'
reply to Mr. Lloyd George Indicated
that the Germans would make an at
tempt to reach an agreement. lie
was quoted as saying that the Ger
mans would examine the premier's
speech, that their intention had been
mistaken and that 'no occasion would
arise for employment of the measures
outlined by the allies. .
According to the German text of Dr.
Simons' speech, howevef; he protested
against "sanctions (penalties) with
out legal foundation." This, of course,
is based on the treaty, which pro
vides that penalties cannot be en
forced until after May 1, but Ignores
the allies' contention that the Ger
mans have failed to comply with the
conditions of the treaty.
Dr. Simons is in close consultation
with the other members of his dele
gation and the Berlin cabinet. The
belief prevailed that new proposals
will be made.
French Highly Pleated.
The British prime minister's pre
sentation of the allies' case greatly
pleased the French. He drew a paral
lel between German action now and at
at Frankfort In 1871, when the treaty
was baBed on the assumption that
France was in the wrong and gener
ally demanded not only reparation but
payment by France of the whole coat
of the war.
"Until Germany accepts the position
that she is responsible for the late
war and interprets her obligations ac
cordingly," said Mr. Lloyd George,
"these'eonferences will be futile."
(Armaa Delegates Klgld.
He insisted, however, that the allies
were not going so far in the matter
of payment as the Germans went in
1871.
The German delegates sat very rigid
and gave no expression to their feel
ings throughout the speech.- Dr. hi
mona was extremely pale.
It is noted that the towns to be oc
cupied In case the Germans refuse to
come to terms face the territory occu
pied by the Anglo-Belgians, so that
th armies will be the first to move,
should the necessity exist.
Period Not to Be Itednced.
The German delegation was in
formed the allies would not reduce
the period of 42 years allotted for the
payment of the total amount of repa
rations by Germany.
Germany's counter-propoals, which
were submitted to the allies on Tues
day, were not susceptible of exami
' nation. Premier Lloyd George told
Dr. Walter Simons, head of the Ger
man delegation, in substance, after
today's session of the conference had
assembled.
Mr. Lloyd George said the attitude
taken by the German empire regard
ing reparations was, in addition, a
grave violation of the obligation of
Germany toward the allies. He re
minded the German representatives
that their government 'had not ful
filled the treaty of Versailles relative
tc coal deliveries, disarmament, the
payment of 20,000,000,000 marks in
gold and the punishment of German
otficers and soldiers accused of
crimes during the war.
Advantages Held Lost.
Germany, added the British prime
minister, in refusing to' accept the
concessions proposed by the allies
with regard to reparations, had by
the same act renounced the advan
tages granted her at the previous,'
conference with the allies.
After Mr. Lloyd George had fin
ished. Dr. Simons, for the Germans,
said the intentions of thet German
government bad been quite misunder
stood. The German delegation, he
said, would reply at noon Monday,
'In our opinion," added the Ger
man foreign minister, "no occasion
will arise for the action threatened
by the allied powers."
Dr. Simons said the Germane would
examine the Britisn prime minister's
speech and the allied documents most
carefully.
It was noticed during the Hritinh
(Conoludti on Tags 4, Column 3 )
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