THE 3I0RMNG OKEGOMAX, MONDAY, MAY 2, 1921
.7
DECLARED
0 T
Allies Feared on Verge of Still
Worse Errors.
FRENCH FORCING ISSUE.
British Press Declared to Have Op
posed Teuton Offer only Af
ter Paris 'Rejection.
" BY ARTHUR HENDERSON".
: il-Mfmbfr of the Brftilih War Cabinet.
(Copyrllht, 1921. by The Oregonlan.)
LONDON. April 30. (By Special
Cable). Past error have contributed
to the present disastrous position re
." gardingr Germany's problems, and it
acems as this is written that the issue
l will become even more dangerous
within the next few days and that the
allies may march to further and per-
haps more serious errors.
While the British papers luppoft-J-f
in? tha government were declaring
the new German proposals not so de--
rlsory as previous offers, and saying
- they merited serious consideration,
the French opposition was not only
hateful but contemptuous, and ex
pressed with almost indecent haste
the view that the terms did not af
ford a possible basis for negotiations
or further consideration. This out
. burst evidently had the intended ef
feet on London, for there was at once
- a noticeable hardening; of government
press opposition against the pro
posals. As a matter of fact, the pro-
- posals represented a real advance, and
7. were entitled to receive proper con-
- sideration. But in view of the hostile
attitude of the French, It became safe
to assume from the first that the
French "rejection" would be ratified
'": by the supreme council.
S Peaceful Settlement Passible. .
The intervention of America seemed
7 to offer a new avenue of approach on
this troublesome and critical matter
and Germany's latest response showed
the possibilities of peaceful settle
" ment had not been exhausted. While
i France frankly stated her opposition
more sober negotiation were unprom-
ising. They have not been tried
t properly in the spirit of enlightened
- will. The -method of military dicta-
- tion is thoroughly deceptive, and will
: in Itself seriously prejudice if it does
not defeat tbe object it is Intended to
achieve.
It is difficult to imagine that the
- British premier will readily engage
: the government to support France in
a policy of military subjugation, to
obtain results which are obtainable
onlv through allied and German co
operation, founded on a common
i sense appreciation of economic relations-Method
of Payment First.
There is no way in which an occu
pation of tbe Ruhr can expedite Ger-
many's capacity to pay. which should
' be fixed prior to a fixation of meth
ods of payment. It is agreed, even by
the German socialists, that Germany
; shall make the fullest possible repa
ration. But any Interpretation of
Germany's obligations which does not
; bear a scientific relation to her eco
nomic resources and possibilities is
mere empty futility.
No civilized country would attempt
to impose conditions of slavery, or
semi-slavery, on another nation, and
no display of military force can
change economic laws or increase the
productive capacity of a nation. It
will instead retard economic recovery,
as history will show.
An early and Just solution, to which
the American president rightfully and
willingly has referred, obviously can
not be realized until Germany's ca
pacity to pay is satisfactorily agreed
upon.
Coal Parley Fruitless.
Another week has gone by without
settlement of the national coal stop
page, and days of negotiation again
!have proved fruitless. It is generally
recognized that a permanent settle
ment must be preceded by a temporary
agreement.
The determination of the miners to
fiirht snDarentlv remains unshaken.
:But an increasingly powerful factor
, is entering the struggle. It is star
vation in the home oi ine miners.
Little imacination is needed to vis
ualize the distress among the women
. a Miilrlren as well as the men. But
th. trades union movement is com
ing to the relief of the distressed, and
in the last three days 1100,000 has
been contributed.
I GREATEST TENOR AS HE APPEARS TODAY.
I V & t
af v iji.il. ' 'j''ii - t
' rr : w .
t-f Ji - " ' HJ
"Ti7t ... mm j I
EUROPE'S SAVIOR
Might Halt Proposed
Ruhr Invasion.
FRANCE'S ARDOR COOLING
Photo from Underwood,
Enrico Caruso and Mrs. Carnso, snapped in New York following singer's
convalescence from recent serious Illness.
profits taxes he said an intelligent
revision of these taxes should en
courage production. the pronts
taxes, he estimated, will yield not
more than 450,000,000 for the taxable
year of 1921.
Revenue Declared Reduced.
As for a substitute for this tax. Mr.
Mellon cited estimates of $400,000,000
annually as a yield from an addi
tional flat tax of 5 per cent on cor
porate incomes, provided the exemp
tion of $2000 now accorded corpora
tions is eliminated.
Discussing the readjustment of in
come tax rates, he said higher surtax
rates have reached the point where
they serve to drive capital into tax
exempt securities and thus reduce tbe
revenue.
The tobacco and capital stock taxes
and the taxes on admissions should
be retained, he believes, but he urged
that so-called luxury and "nuisance"
taxes be got rid of because they are
"relatively unproductive and unneces
sarily vexatious."
NOT VITAL, SAYS DENBY
PRIEST TO VISIT
HOXSIGSOR fcA'N'E TO CARRY
ARCHBISHOP'S REPORT.
DISASTER SEEX IF FLAG
LOWERED AT SEA.
IS
Army Cannot Be Sent Over Water
Tliat Is Not Guarded, Is
Secretary's Declaration.
MELLON OPPOSES LEVY
(CoTitlnu4 From Flrat Pare.)
around $330,000,000 and its repea
cannot be effected with safety "un
less congress has a substitute."
..' F.conomy 'Warning Is Glvrn.
He also suggested to congress that
It may oe aavisauie iv iano m.iiw
to restrict further issues of tax
exempt securities, saying it is est!
mated that there are now outstand
ing perhaps $10,000,000,000 of the se
curities.
Emphasizing that expenditures for
this fiscal year have been at the rate
of $3.000,000,00.0, Mr. Mellon warned
congress that the nation "cannot con
tinue to spend at this shocking rate."
Substantial cuts in current expedi-
tures. he said, offer the only hope of
" effective relief from the tax burden
19S2 Budget Uncertain.
' "Reduction of appropriations, more-
- over, will not of itself be effective to
. reduce expenditures unless congress
avoids or controls measures which
result in expenditures without an ap
parent appropriation," he said. Re
appropriation of unexpended balances,
revolving fund, appropriations and
; appropriations of receipts and other
' indefinite authorizations of expendi
' tures in the past have been respon
sible for hundreds of millions of dol
lars of actual cash outgo.
Mr. Mellon said that estimates for
1922 budget are subject to great un
certainty. The estimated collection
of $3,700,000,000 of Internal taxes are
based on the provisions of existing
law, he added, and are $850,000,000
less than the estimated collections
' for 1921, chiefly because of the
shrinkage in business.
1823 Surplus Is Doubted.
"The estimated ordinary expendi
tures of $4,014,000,000 will be effect
ed by appropriations still to be
made," he added. ''The estimated ex
penditures of the war department
and the navy department, aggregat
ing more than $1,100,000,000 for 1922,
will depend largely upon the military
and naval policy adopted.
"The estimate of about $545,000,000
for payment to the railways in 1922
is made necessary by the provisions
of the transportation act and in
creased estimates from the director- j
general of railways, in absence of
drastic cuts in military and naval
expenditures, there is almost no
prospect of any substantial available
surplus even in 1922."
Ursins early repeal of the excess
DETROIT, May 1. The United
States navy was described as ao as
surance against disaster by Secretary
Denby In an address last nignt. ii
the flas is ever lowered on the sea."
he said, "prepare to lowen it on land.
Failure to maintain the navy will
spell absolute disaster. You cannot
send an army over unguarded seas."
Secretary Denby referred to what
he said was the frequently heard
complaint that the navy is an expen
sive Institution. It was necessary in
surance, however, he said, adding:
"All the cost of all the navies of all
the world was saved by Great Britain
in one terrible week."
"You know and I know," he con
tinued, "that if they had not bad that
navy there would be no England
today."
A friendly greeting awaits any na
tion that extends to the United States
the hand of friendship, he said.
Rut no nation that comes to us
with Intent to do us harm shall go
unscathed." he added.
GRANGE TO HAVE PARADE
Demonstration to Feature Oregon
State Session at Eugene.
EUGENE, Or., May 1. (Special.)
A monster parade on the business
streets of Eugene will be the big
feature of the first day's session of
the Oregon state grange, which meets
here May 31 and June 1 and 2, ac
cording to announcement at the meet
ing of Lane County Pomona grange
at Willakenzie grange hall yesterday.
Almost the entire session of the
Pomona grange was taken up with
discussion of the plana to entertain
the state body. It is planned to have
every grange in Lane county, num
bering over 20, in line in the parade,
each with banners and floats, and
outside granges will be invited to
participate.
Hundreds of homes will be thrown
open to the grangers.
SCHOOL EDITORS TO MEET
State High School Press Associa
tion Is Proposed.
UNIVERSITY OF OREGON. Eugene,
May 1. (Special.) High school edi
tors from every school in the state
have been specially invited to visit
the university on junior week end, at
which time an effort will be made to
organize a state high school press
association.
Th editors will be entertained by
Theta Sigma Phi and Sigma Delta Chi,
journalism fraternities. The purpose
of the proposed press association is to
tarry on the Journalistic worn in ure-
on high schools efficiently.
Reds to Be Put Down.
ROMF, May 1. The cabinet coun
cil today decided to meet the May day
demonstrations with firmness and to
put down violence.
Pastor of Albany Clturcli Will See
Pope and Visit in Paris and
in Switzerland.
ALBANY. Or., May 1. (Special.)
Monsignor Arthur Lane, rector of th
Albany parish of the Roman Catholi
church, who. as the representative of
Archbishop Christie of Portland, will
carry the report of the arch-diocese
to Rome, will leave on that mission
Tuesday. He will sail from New York
for Havre on the steamship Rocham
beau.
Upon arriving In France, Monsignor
Lane will go to Pans, where he will
vlst some of the professors at flie
Seminary of Paris wiho were h:s in
structors when he was a student at
the Sulpician seminary at Montreal.
He will then go to Lyons, where he
will visit the primatial church of
France, and thence by way of the
Riviera and through the principality
of Monaco to Rome.
Monsignor Lane expects to reach
Rome by the end of May. He will
have an audience with Pope Benedict
ana present the report of the arch
bishop on the condition of the dio
cese. After spending some time In
Rome, he expects to go to Switzerland
and visit at the lake of the Four
Cantons and at Lucerne. He will re
turn to Paris and will sail for the
United States the latter part of July
This will be Monsignor Lane's sec
ond visit to Rome. He was there
nine years ago, when he went to
Europe to attend the Eucharist con
ference at Vienna. At that time he
visited the Vatican and had an audi
ence with the pope. - His visit this
time will be of more interest, because
he is now a member of the official
household of the Vatican. This honor
is one of the incidents of his recent
appointment as a notary apostolic ad
lnstar of the church, with the title of
monsignor. He received this appoint
ment last September, and the cere
monies attendant upon the formal
conferring of the honor were held at
the same time be celebrated the sil
ver jubilee anniversary of his ordina
tion to the priesthood.
PITTSBURG BASIC PRICE HELD
SOLK POINT AT ISSUE.
Chairman of Board of Directors
Says Corporation's Practice
Is Usual System.
NEW YORK, May J. Elbert H.
Gary, chairman of the -board of di
rectors of the United States Steel cor
poration, declared yesterday that he
welcomed investigation by the fed
eral trade commission into charges
mat the corporation and 11 of its
subsidiaries had practiced unfair com
petition in interstate commerce
through the system of having Pitts
burg as a basing point for selling
prices.
"It' is a mistake." he said, "to sup
pose the proceedings are directed
against the United States Steel cor
poration or any other manufacturing
concern. They involve a simple ques
tion relating to the Pittsburg base,
so-called."
Many, if not all other lines, he said.
carry out similar practices. These
consist of establishing a sj'stem of
base prices and plus prices. Except
for rails, steel, wherever made. Is de
livered under this system at the
Pittsburg base price plus what the
freight would have been from Pitts
burg to the delivery point. Pittsbure
is known as the basing point in the
steel industry.
Delaware Differences Settled.
PHILADELPHIA. May 1. T h e
wage scale dispute between the mas
ters, mates and pilots and marine
engineers employed on tugs in the
Delaware river and bay and their em
ployers was settled' yesterday by A
decision of a local board of arbitra
tion. The reduction of 15 per cent
was accepted.
Read The Oregonian classified ads.
Paris, However, Will Insist on Ade
quate Guarantees; London Is
'Oppo.iod to Venture.
BY WILLIAM BIRD.
(Copyright, 1021, by The Oresonian.)
' ' PARIS. May 1. (Special Cable.)
World Arbiter Wilson has been super
seded by World Arbiter Harding. That
in the nlain situation as recognized by
those Europeans with vision clear
enough to see through the veils of
hesitation and uncertainty with which
international relations are shrouded
at this critical hour. It is realized
that re-entrv of America into world
counsels means that-the United States
must henceforth assuma the leader
ship with whatever profit and respon
sibilitles that position entails.
Stubborn nationalists of all coun
tries. nerhaDS especially those of
France, may insist that their course
is not to be swayed by Washington
Dut from the moment Secretary Hughes
said in his note to Germany "the
United States is anxious to see nego
tiations resumed." and promised to
examine new German proposals,
Washington instantly became the eu
pretne court of world opinion,
America's Power Realised.
Nobody, of course, supposes that
President Harding desires to assume
an arbitrary role; indeed, he has him
self disclaimed such an ambition, but
the cold fact is, and wise Europeans
perceive it, that with America's over
whelming economic power and post
tion as creditor to all of the other
principal nations, the least hint from
Washington must be more influential
than the most formal declaration
from any other capital. Added to this
Is the tremendous prestige that the
mero name "America" carries with
the masses of the people of every Eu
topean country.
It is a curious thing that even
among the extreme socialists, America
enjoys peculiar immunity. During the
last few days the socialist and com
munist press of the principal coun
tries has freely discussed the resump
tion of international burdens by the
United States. Although this press is
hostile in principle to all capitalist
government, It frankly regards Amer
ican intervention as a gain for the
cause of peace. It must be remem
bered that socialism has gained many
adherents in Europe through the op
position of all these new warlike man
ifestations. In fact, there are many
people professing socialism in Europe
today who disagree totally with the
socialist theory, but are unable to find
any other powerful party taking an
uncompromising -stand against re
newed warfare.
France Wants Assurance.
In all these circumstances, there
fore, the evident distaste of the Amer
ican government for the proposed
Ruhr occupation plan may have a
profound effect., A milder tone al
ready is apparent In Paris, while Lon
don quite frankly is in opposition to
the move which only a week ago it
seemed to approve.
But it should plainly be understood
that France has got to have guaran
tees. If persuaded by America to
abandon the venture demanded by the
hotheads, France must receive in ex
change some assurance of American
support in exacting payment by other
means. Otherwise the Briand min
istry will be left without a leg to
stand on, and will have to give way'to
Poincare and the extreme reactionists
and annexationists.
Evidences have accumulated here
that Secretary Hughes understands
this and tlx belief is current in in
formed quarters that during the pres
ent London conference American in
fluence will be brought to bear in
favor of a sane, peaceful settlement.
buch an intervention might raise ex
tremist protests in both France and
Germany, but if, it contains elements
of fairness and practicability it will
receive wide popular support in both
countries.
shortly.after 4 o'clock this afternoon
at the close of formal meetings held
at various headquarters in this city
ty the marine engineers, marine fire
men, marine cooks and stewards and
the international seamen's unions.
Each of these unions emphatically re
jected the compromise 15 per cent
wage reduction urged by Admiral
Benson of the shipping board, which
was accepted and put into effect at
midnight Saturday by two big steam
ship owners' associations..
The meetings were largely attend
ed, and after a vote of rejection had
been passed the word was flashed by
wire to all coastwise centers. Each
of the unions took tbe attitude that
It was locked out and a lockout in
stead of a strike ia the official term
for the suspension of all work on
shipping that became effective after
the vol of rejeotion had been taken,
Approximately 125,000 workers are
involved in the so-called lockout. Of
this number between 30,000 and 40.009
tire in this port. The engineers claim
a membership of 1.5,000, of which 600
ia in this district. A rough estimate
places the membership of the firemen,
oilers, water tenders, deck hands and
ULuer lunula aL jiu.ui'v exclusive
radio operators. In this latter class
the local membership is estimated to
be between 2000 and 3000. The num
ber of ships affected by the lockout
Is said to be about 20OO, of which be
tween 200 and 300 are in this port.
The total tonnage Involved is about
13,000,000 of which 7,500,000 is owned
ay the United States shipping board
The passenger lines affected at this
port will be the American, Munson
and United States Mail, the American
liners, St. Paul, Philadelphia and New
lork already are tied up.
Just how effective the lockout Is to
be will not be known for at least 24
hours more. It was stated a day or
two ago in congress that a complete
tieup of the shipping industry woul'l
st the country at least $1,000,000
day.
Trans-Atlantic liners flying the
American flag were not impeded on
their way to their berths yesterday
cut the Marine Firemen's union an
nounced that the firemen would with
draw from all thesv liners as soon as
they were berthed and left in prope"
condition unless the firemen were in
formed that the old wage scale would
be continued. In the case of all
coming vessels the instructions are
that all union workers will finish
whatever is to be done, put In their
time and report immediately to the
headquarters of the union, they are
affiliated with.
UMOX..MEX QUIT FOUR SHIPS
Shipping: Boa.rd Official Says He
Can Got New Marine Workers.
SAN FRANCISCO. May 1. Initial
developments here in the threatened
nation-wide strike of marine workers
resulted in the abandonment of four
United States shipping board vessels
by various members of maritime
unions. Officials of the local marine
engineers union tonight predicted
that within 24 hours shipping In this
port and others on the Pacific coast
would be tied up. Coastwise passen
ger steamers will continue to oper
ate, it was stated here, due to non-
xpiratlon of former wage contracts.
In the 24-hour period ending at
midnight Saturday, a record for the
number of vessels cleared from here
was established, according to official
records, when 42 ships left, with an
ggregate net tonnage of 70,000 tons.
Announcement - was made by H. H.
Ebey, local shipping board head, that
the sea-service bureau of the board
ere has sufficient applicants to man
11 vessels it desired to operate. The
irst vessel scheduled to leave here.
operating under the new wage scale.
is the United States shipping board
freighter Eastern Sailor. Union of
ficials declared, however, that the
crew would abandon the ship.
Confidence in the further negotia
tions at Washington, D. C, to bring
about a settlement, was expressed by
both operators and labor representa
tives here today, both parties hold
ing that the strike would be of short
duration.
STRIKE HOLDS UP 4 CRAFT
(Continued From Firnt Pagf.)
il'ic coasts became an official fact
MILLS DIVIDED OX STRIKE
Some Paper Manufacturers Sus
pend, Others Keep Old Scale.
ALBANY, N. Y.. May 1. A break
In the ranks of the paper mill manu
facturers, wheTe approximately 25,000
paper makers have threatened to
strike because' of a proposed wage
reduction and a change in working
conditions, was reported tonight.
J. T. Carey, president of the Inter
national Brotherhood of Paper Mak
ers, announced that, while the plants
of the International Paper company,
the Minnesota & Ontario Paper com
pany and the Fort Francis Pulp &
Paper company suspended operations
today, several smaller concerns have
agreed t continue the present wage
scale and working conditions.
AN -I
"
as
Oil
In addition to the ore that is taken from western
mines, the fruit and grain that spring from the
earth, and the herds of live stock that graze on
our plains, there flows from the soil of the West
still another source of energy and wealth. The
oil supply of the West is one of its most valuable
assets.
Those who pause to consider the future of the
West will be struck, first by the fact that it is
bountifully supplied with the fundamental re
sources needed by the world, and second by the
boundless opportunities that the development
of these resources offer to western enterprise.
For years it has been the aim of this bank to aid
in developing the resources of the West.
THE .BANK OF CALIFORNIA, N. A
A. NATIONAL BANK
Member Federal Reserve System
Third at Stark Street
PORTLAND
OREGON
hold the Man." which has been shown
at the public auditorium, may be
brought here for another showing this
month, according to W. T. i'anglc.
under whose management the picture
has been shown here. So popular was
the picture that hundreds were turned
away yesterday, it was said, espe
cially at the performance at night.
The picture was shown last week to
approximately 30.000 persons, accord
ing to Hal White, manager ot the
auditorium.
OREGON PUBLISHER HOST
Prominent Cartoonists Arc Guests
at Salem Banquet.
SALEM. Or.. May 1. (Special.)
Murray Wade, editor and publisher of
the Oregon Magazine, last night en
tertained at dinner at a local hotel a
party of cartoonists of nation-wide
prominence.
The honor guest was Warren Gil
bert of Denver, son of Mr. and Mrs. A.
N. Gilbert of this city. He is now.an
advertising artist for the Gates Tlra
company. Previously he was car-
oonlst on the Denver post ana uen-
ver News lor lo years.
Other guests were Howard usher.
cartoonist on the Oregon Journal; A.
G. Robertson, theatrical poster car
toonist of Portland: Clyde Kellar,
formerly of Salem; Frank S. Bowers,
formerly of the San Francisco Ex
aminer and for 10 years cartoonist on
the Indianapolis News, and Clyde
Benson, poster designer for Foster &
Kleiser of Portland. Mr. Wade was
at one time cartoonist on The Oie
gonian and Portland Telegram.
SEED REPLEVIN IS ASKED
Portland I'irm Ses Farmer for Al
leged Breach of Contract.
ALBANY, Or., May 1. (vSpeclal.)
The case of Portland Seed company
against E. E. Munsey of Lebanon, In
wh'ch agents of the company split
onn n niinnfify nf pumpkins on
Munsey's farm last fall and took the
seeds which the company alleges
Munsey had contractrd to sell it, will
go to trial in th- state cln-ilt court
here tomorrow. It is a rcp'.cvln ce
with rather unusual fatu'es.
When It filed suit Portland feed
company asked for the seed and $100
daman for Munst y's failure to de
liver in aceordance with tho alleged
contract. Munsey has asked for a
return of tho seed to him or. In ths
event that the seed cannot be re
turned, that he receive I02S aa the
value of the seed and $100 special
damages. Munsey contends that the
seed was removed before the pump
kins had matured.
LONDON, May 1. France Is look
conferred an earldom on Viscount
French on his retirement today as
lord lieutenant and governor-general
of Irelnml
TI7ELCOMED with delight by
VV
every
family:
member of the
Passion Play May Return.
The Passion play production. "Be-
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