Morning Oregonian. (Portland, Or.) 1861-1937, July 20, 1921, Image 1

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    VOL. LX NO. 18.927 EnterU itPtrtlari (Oremn)
VX. JV J. - PoFtofflre aSgefnd-CIw Matter.
PORTLAND, OREGON, WEDNESDAY, JULY 20, 1921
PRICE FIVE CENTS
SHOES MAY DECIDE
WHO MS SLAIN
GUARD OVERPOWERED;) C1 10 K1Q
CUT
SEA ENGINEERS VOTE
DOOMED MAN SMOKES
BEFORE FIRING SQUAD
CIGARETTE CALMLY PUFFED
rXTILV BULLETS STRIKE.
MOVE TO DISARM
SPECIAL POLICEMAN
MTTDRNEYS CLASH
LPRISriNFR IS. SFI7Fn
TO RETURN TO JOBS
IS SHOT BY FIGHTERI
TAXI DRIVER DECLARES HE
WAS ATTACKED BY ENEMY,
wwiia-II IW w i I 1
'S BILL
G
'PARTY OF MASKED MEX TAKE
BALLOTING RESULT - AT SAX
MAX AWAY IX AUTO.
FTiAXCISCO, 4 80 TO 50.
OFF NATION
GIN SMAGNTUDE
AT PHONE HEARIN
Coroner's Jury Takes Up
Case at Roseburg. .
MRS. BRUMFIELD TESTIFIES
Woman Shakes With Sobs,
but Insists Mate Is Dead.
COURT HAS BIG CROWD
Shoe Dealer Declares Pair Found
on Murdered Man Are Like
Those Sold to Itussell.
ROSEBURG, Or.. July 19. (Special.)
That the shoes found on the body
In the wrecked Brumfield auto will
figure prominently in the Identifica
tion of the. headless body over which
the coroner's inquest was started to
day, was proved when I. Sellg. Myrtle
Creek merchant, tooK the stand, just
before the close of the day's session.
"I had known Dennis Rusell for
many years, Mr. Selig said, and sev
eral months ago he bought a pair
of shoes at my store. The shoes
were of the Star brand.
lie was shown the pair of burned
shoes, found In the wreck, and asked
if they were those he had sold to
Russell. He replied that he could
not identify them povitively, but
that they were or the same brand
and the same size ils those he had
old.
Shoes Are Compared.
Mr. Sellg produced a pair of shoes
Identical with those he sold Russell,
and they were compared with th.e
burned shoes taken from the bo'dy.
They were of about a number 7 size,
which was the size Russell wore, and
were of the same brand. Dr. Brum
flcld's shoes were number SVi. Mrs.
Brumfleld declared when giving her
testimony earlier in the day.
Only one pair of shoes was found
and the fact that the smaller size
shoes. Identical with those sold Rus
sell, were found on the feet of the
burned body will doubtless have con
siderable weight with the Jury.
"With the court crowded to capacity
and hundreds of persons unable to
sain admittance, the inquest which
was hoped to form an Important link
In the murder case was started.
Heeord Set by Crowd.
Never before In tne history of the
county has such a crowd been at
tracted for an inquest or even for the
most sensational homicide case.
The crowd commenced to gather
long before the hour Bet for the in
quest and every inch of standing
room was taken before the first wit
ness was called.
Mrs. Brumfleld, heavily veiled-and
accompanied by Mrs. C. S. Ueinline,
a close friend of the family, Mrs.
C. B. Patrick, sister of Dr. Brumfleld,
and a trained nurse, had seats within
the rail. Mrs. Brumfleld was the
first witness called to the stand and
although she broke down frequently
Bhe gave good testimony iii the case,
speaking up well in spite of her ner-.
Vous and shocked condition.
llody Shaken Witk Soba.
Frequently sne stopped while her
, lody shook with Bobs which were
audible over the entire court xoom and
hundreds of other women also gave
way to tears.
Mrs. Brumfleld told the Jury, which
Is composed of John Throne, O. C.
Baker. Napoleon Rite, Barton Holli
well and I'aul Bubar, all prominent
business men, that there was no doubt
In her mind regarding the body.
She gave a complete description of
the body of her husband, told his ase
and the measurements of his clothes.
She also gave an account of their
car'.y life, of their marriage and their
change of residence to Roseburg, fol
lowing his graduation from the den
tal college. In speaking of their
three children, she broke down, and
it was several mlmitcs before she
could resume. She told of the last
time she saw her husband, and of his
telephone calls.
Drpnrtnrc la Related.
He left early on the morning: . of
July 15. she S4iid. and at noon he
called her by telephone and again at
6 o'clock, telling her he would be
late getting home.
"He told me he would rat a lunch
In town," she said, "and that he would
rot be home until late. He had-not
teen feeling well since the Sunday
before," she added, saying he was
having trouble with his stomach.
On th previous Sunday, she said,
they had passed the day at the home
cf his nephew by marriage, Millard
Meredith, an ex-service men who had
taken up a homestead near that of
Dennis Russell. It was at Meredith's
home that Dr. Brumfield first met
Kussell. It was 'said. f
Mrs. Brumfield was asked to give
a description of her husband and re
plied that he was six- feet In height,
was of dark complexion and weighed
182 pounds. He-wore a 1514 size
shirt and 8H shoes. He had no scars
on his body.
His only ring, Mrs.""BrumfleId said,
was a fraternity ring:. She was shown
the ring found on the body and Iden
tified It as that or her husband.
iCuucludvd ou 6, Column 3.j
Note Signed 'Klu Klux Klan' found
In Pocket of .Youth Discovered
Unconscious and Gagged.
TEXAHA, Tx July 19. J. W. Jic
Knight of Nacogdoches, while being
taken to Center, county seat of Shel
by county, by a deputy sheriff, fol
lowing his arrest here tonight on a
charge of carrying concealed weap
ons, was seized by a party of masked
men, after his guard had been over
powered, and whisked away in a
motor car.
- TYLER, Tex., July 19. George H.
Peters, 20, was brought here to a
hospital today from a point about
three miles from Chandler, Tex.,
where he was found unconscious and
gagged. A note, found in his cloth
ing, signed "Ku Klux Klan," said
he had been taken from a hotel at
Chandler and about $240 In money
taken from him. The note added he
was not the man wanted.
When last heard of the automobile
was speeding through Timpson near
here, with its occupants firing volley
after volley of pistol shots.
Sunday morning, McKnight, who Is
a plumber, was attacked by a party
of masked men at Timpson and se
verely beaten. Some of the men. he
said, he recognized. Carrying out his
announced Intention of laying the
matter before authorities, McKnigit
came here late today to furnish in
formation concerning the assailants
but was arrested on a charge of car
rying a pistol.
COUPLE DISCOVERED DEAD
Portland Man Held to Have Slain
Woman and Himself.
LOS ANGELES. Cal., July 19. Bodies
of a man of 38, who registered as E.
Libby of Portland, Or., and Mrs. Mary
Davis, 41, were found today when
the door of a room they had occupied
in a downtown hotel was forced open.
Death in each case was due to bullet
wounds. The poflce said they believed
the man shot Mrs. Davi3 and then
himself. Examining physicians said
the shootings occurred probably a
week ago.
According to the police, Mrs. Davis
was the wife of B. B. Davis of San
Diego.
The name of E. Libby is not listed
in the Portland city directory or in
the telephone directory, and the po
lice yesterday were unable to locate
any person from Portland who knew
anything of the Los. Angeles suicide.
Records of the police detective bu
reau ' failed to disclose any missing
person of that name. The local police
believe he may have been a transient
and not a resident of this city.
SLASHED HEART SEWED UP
Surgeons Stitch Knife Cuts and
Boy Is Recovering.
NEW YORK, July 19. Frank
Farino, 16, of Brooklyn, Is recovering
today after his heart was accidentally
pierced with a knife and then
promptly sewed up.
The boy was working yesterday In
a factory when a 17-inch knife witb
yhich he was cutting rope slipped.
The blade entered his chest, pierced
the heart covering and cut ' through
the heart musvles.
He was hurried to a hospital, -where
surgeons opened his chest wall, took
four stitches In the heart muscles
and three in the covering.
ROAD SURVEY PROCEEDING
State Engineers Announce Plan to
Bridge Rogue River.
MARSHFIELD. Or.. July 19. (Spe
cial.) The state engineering party
which visited Gold Beach last week,
including Messrs. Chandler and Camp
bell, announced that the state high
way commission .intended bridging
Rogue river in 1922 as a portion of
the Roosevelt highway 'work.
Surveyors from the highway com
mission offices are working on the
Roosevelt highway north from here
to the Siuslaw river and on the Curry
county unit between Gold Beach and
the Curry county line.
KIDNAPERS WANT $50,000
- N.
V
Note Demanding Money Sent to
Wire or Prisoner.
. SHARON. Pa., July 19. Thomas D.
Randolph, - a leading .business man
here, was kidnaped last nisht and is
being held for $50,000 ransom, accord
ing to lnformatio'n given the police
by Mrs. Randolph today.
Mr. Randolph did not return home
last night, This-' morning his wife
received a note signed "kidnapers,"
demanding $50,000 for the man's re
lease and giving instructions as to
how the money was to be paid. A
second note from Randolph told of
his captivity.
EVIDENCE IS SWALLOWED
J Saloonkeeper Drinks Liquor In-
" tended to Aid Prosecution.
MILWAUKEE. wV, July 19. Al
bert Multerer, Milwaukee saloon
keeper, dranl the evidence seized by
state prohibition agents while fe raid
on Multerer's place was in progress,
according to a report to- the district
attorney today.
"While Agent Henning was, writing
a label to be placed on a bottle of
whisky seized in Multerer's saloon
Multerer drained the contents of th
bottle." the report said.
Saving for Current Year
Estimated by Dawes.
LETTER SENT TO PRESIDENT
Possible Economies Bared by
Budget Machinery.
BUILDING DELAY ASKED
$22,822,113 Is Sliced Out at Ex.
pense of Construction That Can
s Be Delayed Year.
WASHINGTON. D. C, July 19. An
estimated saving of $112,512,528 can
be effected In the appropriations of
approximately $4TuuU,000,000 available
for government expenditure during
the current fiscal year. President
Harding was Informed today by Di
rector of the Budget Dawes.
Included in the estimate. Director
Dawes said, was J22,822,113 pertain
ing to continuous appropriations for
building and construction which
could be postponed for expenditure in
future years.
The estimate of government econo
my possible during the present fiscal
year was contained in a letter di
rected to the president by Director
Dawes, who presented the amounts by
which the expenditures could be re
duced in the departments and inde
pendent establishments.
ISconomlea Sarvcr Made.
survey or possiDi economies was
begun a few weeks ago by Director
Dawes, using the budget machinery,
after a meeting at which department
heads and bureau chiefs had been di
rected to reduce expenditures.
"Whatever may be the relation of
total expenditure to total revenues at
the end of the current year," the
director wrote, "which for various
reasons, including possible -new legis
lation, the operations of the shipping
board, - the railroad administration
and fluctuation in current receipts of
the post office department, cannot
be predicated at this time, the above
amount is that much of a contribution
to a more favorable relation.
"This fine response to your request
from the heads of departments and
independent organizations and bureau
chiefs infers the existence in their
minds of three principles involving
Improvement in governmental busi
ness. , "First That the business organiza
tion of government hereafter assumes
that the minimum amount of money
(Continued on Page 2, Column 1.)-
A PICTORIAL
' ;
l - MOVE OVER ) 1 t
J . A LITTLE CANTj i "S l "
i ; ...... .....A i
Strikers Out Ever Since Nation-
IVide Maritime "Walkout Was
Ordered May 1.
SAN FRANCISCO, Juy 19. San
Francisco union marine engineers,
meeting tonight, voted, 4S0 to B0, to
return to work Immediately, it was
announced by officers.
The engineers have been on strike
nee May 1, when the nation-wide
maritime strike was called.
The marine engineers at a previous
meeting recently had voted to return
to -work on United States shipping
board vessels under a national agree
ment, but voted to continue the strike
against private owners. The vote
tonight was on the question of re
turning to work on private-owned
vessels.
Ernest F. Pegg, secretary of the
local union, made the announcement
and said all marine engineers 'would
report to work tomorrow morning.
FREIGHT CUTS ANNOUNCED
Material Reduction Made on Sev
eral Important Commodities.
SAN FRANCISCO, July 19. Jam
and playing cards were granted the
dignity of a class freight rate and
scheduled at $1.95 and $3.65 a hun
dredweight, respectively, from Atlan-
rttc to Pacific ports by the North At
lantic-Pacific coast westbound con
ference today. Heretofore they had
gone under the commodity or mixed
shipment status.
The conference announced a reduc
tion from $1.45 to $1.30 a hundred
weight for flour, tapioca and tapioca
flour, a reduction from $2.50 to $2.35
on thread, cotton and linen, and a
reduction from $1.70 to $1.25 on leath
er. Drugs and medicines were given
an individual classification and rated
at $1.65 a hundredweight.
ACCUSED WOMAN IS HELD
Charge of Forging T. R. Indorse
, mcnt to Be Pressed.
NB7W YORK. July 19. Mrs. Emma
R. Burkett, here from Hillfidale, Ind.,
to face a charge of forging the in
dorsement of the late Theodore Roose
velt on a note for $69,900, today
pleaded not guilty and was held for
trial July 27.
She appeared in court without coun
sel and the Judge asigned an attor
ney to defend her.
IDAHO ROBBERS CONTINUE
Firth Case or Bank Looting Within
Few Weeks Reported.
IDAHO FALLS, Idaho, July 18.
The fifth bank robbery in small vil
fages in eastern Idaho within the past
few weeks was reported here this
morning, when officers were warned
to watch for four men who. broke into
-the bank at Leadore last night and
stole $3000 worth of liberty bonds.
Leadore is a small mining town
northwest of here.
ECHO OF THE . HOT WEATHER
uloroccan Machine Gunner With
French on Rhine Executed for
Murdering German.
MATENCE. July 19. (By the Asso
ciated Press.) Mohammed Ben Ah
med, a Moroccan machine gunner of
the French forces on the Rhine, who
was convicted by a French court
martial of killing and robbing a Ger
man merchant, was executed by a
firing squad here today. He calmly
smoked a cigarette until the bullets
struck him.
The execution -was carried out In
the presence of many witnesses, and
all the Moroccan members of the gar
rison were marched past the body.
PLANE BLAMED FOR FIRE
Residence of D. M. Lowe at Med
ford Burned to Ground.
MEDPORD, Or., July 19. Ignited,
according to the owner, by a spark
from a descending .forest patrol air
plane, the residence of D. M. Lowe,
well-known agricultural expert, was
burned to the ground- yesterday at a
loss of $5000.
The Lowe residence was at the edge
of Barber field, the airplanes passing
it every day when alighting. The
exhaust of the plane, according to
Mr. Lowe, set fire to foxtail grass,
which, fanned by the wind, ignited
the grain field and house.
Fire Chief Lawton of Medford made
a run to the field with a chemical
engine and saved all but one acre
of barley crop.
POSTAL TESTS ORDERED
EUgibles for Office'of Postmaster
Will Take Examinations.
THE OREGON I AN NEWS BUREAU.
Washington. D. C, July 19. Eligibles
for appointment as postmasters at
Portland and Pendleton, Or., and Lew
iston, Idaho; will have the oppor
tunity to qualify in civil service ex
aminations to be held August 16, the
civil service commission announced
today.
These were the most important ex
aminations announced for the Pacific
northwest since the new executive or
der governing postmaster appoint
ments was announced.
DEATHS QUEERLY COINCIDE
i
Two Men of Same Name, Unrelat
ed, Die In Same Manner.
RENO; Nev.. July 19. A singular
coincidence In suicides of two men
named Helm is that Gratz W. Helm
in San Francisco was found dead
yesterday afternoon sitting upright in
his chair at his desk with a bullet
hole back of his left ear, while Frank
Helm, foreman of Gold Zone mine at
Tonopah, was found dead yesterday
afternoon sitting in his chair at his
desk with a bullethole back of his
right ear.
They were not related.
IN THE EAST,
New Political Ramifica
tions Revealed.
MUCH DELAY IS FACED
Jap
an Inclined to Hold Out for
Exact Definition.
FRANK VIEWS EXPECTED
Explanation Sent Out by State De
partment at Washington Is
Entirely Informal.
WASHINGTON, D. C. July 19. (By
the Associated Press.) President
Harding's move for a disarmament
conference Is assuming far greater
magnitude in world affairs than first
indications disclosed.
As the preliminary negotiations pro
ceed they are revealing unexpected
diplomatic ramifications and leading
into fields which In the beginning had
seemed far removed from the purpose
of the conference. But officials ap
parently are confident that the wide
spread effect of the. president's pro
posal will in the end prove only an
aid in accomplishing the frank ex
change of ideas for which tire confer
ence was called.
One of the principal side Issues now
occupying the attention of the grov
ernment is the disposition of Japan
to hold out for an exact definition in
advance of the subjects to be con
sidered. Lrnarthy Discussion Faced.
To thresh out that question now not
only would delay the conference, but
might also branch Into a discussion
of the merits of the disputed subjects.
It Is felt that the programme could
best be arranged by the conference or
at least by negotiation after each of
the Invited powers' has sent in an
unconditional acceptance.
News dispatches from Tokio re
porting that Japan might raise such
questions as racial equality and abo
lition of extraterritorial rights in
China were read with manifest in
terest. There was an apparent feel
ing of satisfaction over other unof
ficial advices seeming to indicate that
the Tokio government proposed to
clean the slate of troublesome far
eastern problems by moving toward a
settlement of such questions as Shan
tung and the occupation of Siberia.
Explanation Iff Informal.
It developed that the explanation
given Japan by the state department
relative to the scope of the confer
ence was entirely informal and that
department officials apparently hoped
to be able to reach an understanding
without a further exchange of formal
notes. The Information desired by
Tokio is understood to have been giv
en the Japanese ambassador ffurlng
an informal conversation with Secre
tary Hughes.
President Harding Is understood to
be giving some attention to the per
sonnel of the commission that is to
ronrnt th. TTnfteri Rtni.a
It was indicated today that, al -
though no actual choice probably
would be made for a month or more.
the president definitely had decided
that the senate, because of its joint
. .
resfuiiaiuiuijr iui luicign aiiairs, win
be represented.
VIEWS EXCHANGE FORECAST
United States, Britain and Vapan
Likely to Act.
TOKIO," July 19. (By the Asso
ciated Press.) Subsequent to a cab
inet meeting today which discussed a
report .of Kijuro Shidehara, the am
bassador to the United States, it was
announced that the United States,
Great Britain and Japan probably
would exchange views in an effort
to outline the programme for the
coming Washington conference.
A semi-official statement said
Japan was prepared to give all
prominence in the conference to the
questions of the open door and equal
opportunity in Chlina. so as to place
China in a fair way to the attainment
of an independent national status.
The statement emphasizes the neces
sity of co-operation by the powers
in aiding China in the recovery of
her rights and interests.
It was Intimated in responsible
quarters here that Japan, assuming
the initiative as the leading far- I
eastern power will be likely to sub
mit to the proposed conference over
far-east questions the abandon
ment of extraterritoriality in China
and also to ask the fixation of emi
gration right to countries like Can
afa, Australia, New Zealand and Indo
china and in general raise the ques
tion of racial equality.
The impression was growing that
an endeavor would be made to accel
erate the settlement of matters of in
terest to America, such as the Yap
and Shantung questions, so they may
be disposed of before the opening of
the conference and thus be elimi
nated from the discussions.
It was said at the foreign office
that a report had been received
from Ambassador Shidehara In Wash-
ngton, outlining tne views or sec
retary Hughes reg-arding the proposed
Concluded on Fas 2. Column '
Al Gruman Declares Andrew M.
Uoleman Hit Him With Club
Before Help Arrived.
A call for his touring car took Al
Gruman." a chauffeur, to the corner
I oi nasningion ana rwenty-iirsi
streets late last night to find that
his fares were a man and a woman
with whom he had had difficulties.
The man, whose name was Andrew
M. Holeman, was said to have ac
cused Gruman of owing the woman
some money. A fight was started
and Gruman was hit over the head
with a club. His cries brought Spc-.
cial Patrolman Robert L. Whitesides
to the scene, upon, whom Holeman
was said to have opened fire.
Each man emptied his revolver.
Whitesides was wounded three times.
One bullet penetrated the left shoul
der, another went through the left
side of his face and the third ripped
the right side of his neck.
Detectives and police were rushed
to the scene and scoured the city park
and surrounding territory in an effort
to capture the assailant. The man and
woman were said to have cut through
a yard on Twenty-first street to
street and thence into the park.
Bruman told the detectives that he
had been having trouble with Hole-
man and had known him for several
months. The trouble, he said, was
about the girl.
When attacked, Gruman said he
called for help and started to run.
Whitesides happened to be near by
and answered. When Andrews saw the
policeman he opened fire.
Holeman was said to be well
known and fairly well to do. Gru
man said when he first met him
several months ago he was living at
the Multnomah hotel, but had since
moved. The woman's identity was
not disclosed by the police.
Gruman is a brother of Ralph
Gruman. the fight' referee. He
drives for the Touring & Taxi Serv
ice company at 328 Irving street.
At the hospital Whitesides was
said to be in no great danger. He
was formerly a city policeman and
lives at 63 Jessup street west.
MONTANA OFFICIAL DEAD
iii uieuicnant - uovcrnor fcpriggs
Succumbs at Helena.
HELENA. Mont.. July 19. A. E
Sprlggs, ex - lieutenant - governor of
Montana, died here early today after
a short Illness. He was born in
Wisconsin 55 years ago and came to
Montana in 18S8. He served in the
state legislature in 1894, and 1896 was
elected lieutenant-governor on the
democratic ticket.
For the last nine years he had been
chairman of the state compensation
board. A widow survives.
BINGHAMTON IS ASHORE
Freighter Runs Aground in Fog,
but Crew Is Saved.
HALIFAX. N. S., July 19. The
American freight steamship Bing
hamton went ashore on the Gannet
dry ledge in a dense fog today. Cap
tain M. L. Gill and the crew of 30
men landed safely In the ship's boats
at Chebocque Point.
v It was feared the vessel might be
a t total loss. She wag on her way
to Russian ports with a general
cargo.
I INDEX OF TODAY'S NEWS
, ' The Weather.
YESTERDAY'S Maximum temperature. 70
Jnlnlmam;t. 53 J",';
I TODAYS Fair; northwesterly win da
Forelirn.
Doomed murdered puffs cigarette before
firing- squad. Page 1.
Ulsierites await next British move. Page 2.
National.
Ex-Secretary Daniels and ex. Assistant
Roosevelt of navy department flayed in
senate report. Page 8.
Mrs. Berg-doll says she bribed army officer.
Page 4.
Senate's stand on loan's criticised by Mark
Sullivan. Page 7.
Naval vice probe methods censured Page 3.
Marketing looms as national problem
Page 14.
House puts asphalt on free duty list
Page 3.
Daws announces saving of $112,512,628
for current year. Page 1.
Disarmament move gains In magnitude.
Page 1.
lomert ie.
Banking convention sought by Portland.
Page 1.
Guard overpowered and prisoner whisked
away by masked men. Page 3.
Pretty youns gin losfs memory after faint
week ago. Page 1.
French girl's marriage to American preach
er annulled by court. Page 14.
Pacific Northwest.
Attorneys clash at. phone hearing. Page 1.
Details of making soldier loans' worked
out. Page 7.
Shoes may decide Identity of murdered
man at Roseburg. Page 1.
Silver cup given to rescuer of 000. Page 1.
Governor Man announces ne wi;i answer
critics in sunoiy papers, rage 14.
Sports.
Accomplice bares baseball se!I-out. Page 12.
Whitney and O'Hara lead qualifying round
in golf open. Page 12.
Semi-pro baseball games for next Sunday
announcea. raso jx.
Fivflr5'--? d!2mid In feature rat it tt-t-mazoo.
Page 12.
California tennis stars Invade east. Fagre 12.
Commercial and Marine.
Not over 10 per cent of Oregon wool clip
remains unsold. Page 21.
Wheat stronger at Chicago on export buy
ing. Page 21.
Oil stocks stimulated by house action on
tariff bill. Page 21.
Steamer Canadian Exporter will load lum
ber In Portland for orient. Page -'O.
Portland and Vicinity.
Fire board puts blame on Captain Rliey.
Page 11-
portland declared well advertised at realty
men's convention. age 10.
Although bit early. Oregon political pot
gets warm. Faa 10.
Portland expected to maintain reputation
In enteretaining Elka today. Page 4.
Building of auto terminal pledged. Page 6t
Valuation of Holdings in
Oregon Is Cause.
SOME CONFUSION IS CAUSED
Figures Declared Work of
Commission Employes.
CHARGE IS CHALLENGED
C. E. Spence, In Argument on Cost
oT Service to Farmers, Holds
Statement Not on Record.
SALEM. Or, July 19. (Special.)
Five minutes before the second day's
rehearing of the telephone rate case
came to a close, James T. Shaw, at
torney for the Pacific Telephone &
Telegraph company, and Harry M.
Tomlinson, assistant city attorney of
Portland, engaged in a verbal ex
change which threw the hearing Into
confusion for a moment or two.
The clash was precipitated by a
statement by Attorney Shaw to C. E.
Spence, master of the state grange,
who was on the witness stand, to the
effect that the valuation of the Ore
gon holdings of the Pacific company
was based on a field survey made In
1914 by employes of the Oregon pub
lic service commission, in which every
stick, glass, pole and switchboard
owned by the company had been
counted.
Atinumptlon tn Resented.
"I object to an assumption of fact
that does not appear in the record in
this case or any other case before
this commission," challenged Attor
ney Tomlinson. "There is nothing in
the records of this commission show
ing such a statement to be a fact, .
and if your company has a record
of such count I would like to see it."
"I am astounded that counsel
should make such a statement." in
terjected Attorney Shaw, rising to
his feet. "Why, he knows of his own
knowledge that these records are in
the hands of the commission ;40 vol
umes, in fact. Ho' the legal repre
sentative of the city of Portland can
stand on his feet and make such a
statement as this is more than I can
understand."
Statement Again Cnallenared.
"I again challenge the statement of
Mr. Shaw," Quickly answered Attor
ney Tomlinson. "There is no record
of field men having been sent out by
the telephone company."
"Well, before this case is over we
will show you these records. Mr. Tom
linson." . Mr. Spence, who was called as a
witness for the Oregon telephone fed
eration, conducted his own examina
tion by simply discussing the farmers'
economic condition and the inter
relation of this condition with the
increased costs of telcptione Bervlce.
"The farmers of Oregon are being
hit on all sides," he testified. "The
federal reserve bank has ruled that
he must sell his products as quickly
as they are ready for market, other
wise he is in the class of a specula
tor and cannot receive financial
assistance from the government. The
freight rates have been increased, the
materials required by the farmers
have not decreased in price mate
rially, while the products of the
farmer have dropped 58 per cent.
Kate Inereaae la Analysed.
"The telephone rate increase means
'that under existing market condi
tions it takes $18 worth of goods
raised on the farm to pay a tele
phone bill for one year, if compari
son is made with the rates and pres
ent prices with those of two years
ago.
"Two years ago the farmer's tele
phone bill couid be. paid by two and
one-half bushels of wheat and now
it takes nine bushels.' Formerly he
could pay his bill with nine dozen of
eggs, now it takes 25 dozen. For
merly nine pounds of wool would
care for the year's bill, now if he
can get 15 cents a pound, which he
cannot," it would take 60 pounds of
wool to cover the tetlephone charges.
"Well, I think that a reasonable
rate at vthis time for the telephone
company would be one which would
force them to bear a loss not to ex
ceed 50 per cent. Others are bearing
their share. Why not the telephone
company?"
In cross-examining the witness. At
torney Shaw developed the fact that
Mr. Spence had made no study of the
rate decision or any of the evidence
presented at the first rate hearing,
but presented his testimony today, re-
,,rnn 1 r. f o rm nlinn ' ti o H f r
the newspapers and from talking
with farmers who are subscribers to
the telephone service.
Opinion la Withheld.
Attorney Shaw attempted to gain
an opinion as to the fairness of the
rates established, based upon figures
purporting to show losses for the tel
ephone company In Oregon from 19;;
to 1919. Ae latter year such figure -showing
that the company had faile.
by 186,000 of making any profit
However, the witness refused to givt
any opinion, holding that before doing
so he would waiTt to Investigate the
valuation of the company and other
(Concluded on Fuge 5. Column i.