VOL. LX-NO. 18.933
Entered at Portland Orron)
Ponrffir-e as Second-Class Matter.
PORTLAND, OREGON, WEDNESDAY, JULY 27, 1921
PRICE FIVE CENTS
PITTQCK WILL IS
HELD TO BE MID
Supreme Court Upholds
Publisher's Testament.
DR. W. E. STONE FOUND
DEAD IN MOUNTAINS
RAZOR IS TARGET
OFAGEE DEFENSE
ILLINOIS GOVERNOR
TO SURRENDER SELF
SECRETARY OFFERS
MORE CERTIFICATES
PHONE
MEN FEAR
POWER CONCERN ASKS iDPrCinrMT'C Dl ZK
I MLUIULI.I U I LLn
IMPROVEMENT PERMIT
CUT IN
ELICITS RESPONSE
WIFE OF PRESIDENT OF PCK
1IE IS LOCATED ALIVE.
SMALL IX MESSAGE SAYS HE
WILL NOT RESIST.
MR. MELLON" PREPARES
MEET EMERGENCIES.
TO
PORTLAND COMPANY TO EX
TEND ITS OAK GROVE PLANT.
V IM N
V
DECISION IS BY FULL BENCH
No Undue Influence; Trustees'
Powers Sustained.
20-YEAR TRUST IS LEGAL
All Allegations of the Contestant,
Mrs. Lead better, Are Overruled.
Every Point Is Covered.
SALEM. Or.. July 26. (Special.)
The supreme court of Oregon today
handed down an opinion affirming In
all respects the decision of the circuit
court of Multnomah county, uphold
ing: the will of the late Henry L.
Pittock. publisher and principal own
er of The Oregonian. It was declared
by the court that there was no evi
dence of undue influence upon Mr.
Pittock in the making: of his will,
but that he had greater influence
over the defendants. O. L. Price and
C. A. Morden, than they had over
hin: that his word was the law of
his business, and that it was their
place to obey and not to influence or
dictate.
The opinion was written by Chief
Justice Burnett, and was concurred
In by all members of the court.
Mr. Pittock died in Portland, Jan
uary 28, 1919, leaving a large estate.
Vnder the provision of a will, dated
August 23, 1916, he gave all of his
property of every kind to C. A. Mor
den, manager bf The Oregonian, and
O. L. Price, his confidential eecretary.
In trust for a period of 20 years, in
order to preserve his estate, which
was to be administered by them as
trustees for the benefit of the heirs.
The heirs include four daughters and
one son. Mrs. Pittock died before her
husband died.
Daughter Institutes Proceedings.
The proceedings to set aside the
will were Instituted by Caroline P.
Leadbetter, a daughter of Mr. Pittock,
and wife of Frederick W. Leadbetter.
It was charged by Mrs. Leadbetter
that the will was the. product and re
sult of undue influence exercised over
the testator by the men he appointed
irusiccs, so mn in ract it was
their will instead of Mr. Pittock's
The court held that this part of the
contest was not supported by the evi
dence adduced in the case, and that
Mr. Pittock assumed the initiative in
framing the will and dictated its
terms according to his own purposes.
As a matter of law the contestant
maintained a further ground of at
tack" to the effect that the will was
void on its face, due to the conten
tion that the trustees were vested
with unrestricted and unlimited dis
cretion, that the will did not specify
with sufficient certainty the bene
ficiaries of the trust, and that it was
a contravention of the. laws of Ore
gon and against public policy because
it directed the trustees to vote the
stock of The Oregonian Publishing
company in favor of themselves as
directors of the company, for 20
years.
- Attack Centers cm One Clauae.
This attack centered about the fol
lowing clause in the will:
"None of my stock in The Ore
gonian Publishing company shaH be
sold, but shall be held intact during
the entire period of this trust. I di
rect that my trustees shall vote said
etock In favor of themselves as di
rectors of said corporation, and it is
my desire and I request that C. A.
Morden shall be elected manager of
The Oregonian and shall be ' re
tained as such, and that Edgar B.
Piper shall be retained as managing
editor of The Oregonian until he
shall become incapacitated or until
lie may voluntarily resign."
The contestant cited many au
thorities condemning as contrary to
public policy combinations among
stockholders whereby for some priv
ate personal gain to themselves they
agreed to vote their stock in
certain way, and other precedents
holding it to be against public policy
so to contract that the control of
the corporation should be taken
from its directors and vested in some
other authority such as a manager
or superintendent.
Authorities Held Not Applicable.
The opinion held that these author
ities were not applicable, for the rea
son that there was no combination
with other stockholders against the
interests of a minority: that there
was no agreement or circumstance
which did not inure to the advantage
of all stockholders, and that there
was no motive of special- gain to Mr.
I'ittock.
It was held by the court that Mr.
Pittock simply directed his trustees
to vote his stock in a certain way.
just as he could have done himself,
if he had lived, and that it was no
more than he had a right to do with
his private property.
After discussing the precedents cited
on both sides, the opinion concluded:
"The action of the testator in re-
osing so large a trust in two em
ployes who had been faithful to him
through many years may or may not
have been provident, as the sequel
jghall prove, but it was not unlawful.
t Continued oa Page 6, Columawl.)
M-azamas, Well Known in Oregon,
Lost Since July 15 Only Four
Day Food Carried.
CALGARY. Alberta. July 26. (Spe
cial.) Dr. W. E. Stone, president of
Purdue university, "Lafayette. Ind.,
who, with his wife disappeared from
Walking Tour camp at the foot of
Mount Assiniboin July 15, was found
dead late Sunday at the bottom of
a very deep precipice, according to
advices received here tonight.
. Mrs. Stone, for whom organized
parties had also been searching for
the last few days, was located aliye
on Sunday at the bottom of a 17-foo-t
crevice, according to word reach
ing here shortly before the message
of Dr. Stone's death was received.
It was reported Mrs. Stone would
recover from the shock of the Mount
Eanon tragedy. The news was con
tained in a brief letter received at
police headquarters here late this
afternoon from guides leading the
searching party. The body of Dr.
Stone was discovered shortly after
Mrs. Stone was located. The body was
a great distance below, in a very dif
ficult position for recovery. Mrs.
Stone was taken to Camp Assiniboin
headquarters and nurses were sent
from Banff to care for her.
A. O. Wheeler, director of the Lake
O'Hara camp of the Alpine club of
Canada, was due In Banff tonight to
take charge.
He is an experienced mountain guide
and had been called off a government
survey to organize another search
party.
When Dr. and Mrs. Stone started
out they had food enough for only
four days, but .until they had been
overdue about two days no anxiety
had been expressed over them. About
this time It was reported that toilet
articles belonging to them had been
found and that searchers had also
discovered traces of a fire near
Mount Eanon.
When friends failed to locate the
pair the royal Canadian mounted po
lice were notified. A sergeant, ac
companied by two game wardens and
a Swiss guide, set out from Calgary,
while an organized searching party,
under the direction of Professor Fay,
known as the father of the Rocky
Mountain Alpinists, began scouring
the country about Mount Eanon.
Dr. Stone and his- wife, as members
of the Mazama club, have made sev
eral trips to Oregon and Washington
snow peaks with members of the
Portland mountain climbers organi
zation. The couple made their last
trip w;ith the Mazamas in 1917, when
they climbed Mount Jefferson.
The Stones are known as expert
mountaineers and seldom depend on
professional guides. They are mem
bers of the Alpine club of Canada and
the American Alpine club.
TRUCK HIT BY TRAIN
Portland Man Injured Probably
Fatally at Dallas.
DALLAS. Or.! July 26. (Special.)
An auto truck driven by Abner
Magers of Portland was completely
wrecked and Magers probably was
hurt fatally at noon today, when the
truck was struck by a. Southern Pa
cific locomotive.
Magers and his brother, George
Magers, left Portland this morning to
drive to Newport. They reached
Dallas just before noon and stopped
for lunch with another brother, Jajnes
Magers, who lives on Church street.
The railroad track runs down that
street. The two men had just mount
ed the truck to resume their Journey
when they crossed the track, not
noticing the approaching locomotive.
George Magers jumped and was not
injured. The locomotive was derailed
and the street badly torn up.
MRS. ADAMS TO QUIT POST
First Woman Assistant Attorney
General Resigns Office.
WASHINGTON. D. C. July 26. Mrs.
Annette Abbott Adams, the first wom
an to be an assistant attorney-gen
eral. will sever her connection with
the government and return to private
practice In San Francisco August 1
it was said today. She resigned some
months ago. but remained to finish up
pending cases in her office, under
which fall all legal questions involv
ing prohibition.
During her government service Mrs
Adams wrote a number of important
liquor opinions, including the in
transit liquor rulings, which holds that
no ships may enter the three-mil6
limit with liquor aboard. Attorney
General Daugherty will appoint i
woman to succeed Mrs. Adams, but so
far has not made a selection.
GLACIER SLIDE THRILLER
Couple in 300-Foot Plunge Nar
rowly Escape Death.
SALT LAKE CITY. July 26. O. D.
Richardson of Seattle and Mrs. Leon
ard Fish of Salt Lake City, his sis
ter-in-law, are recovering today from
injuries and shock .which they -suf
fered when they plunged down a gla
cier on the Alta divide in the Wasatch
mountain range 300 feet Sunday.
Richardson lost his footing in an
endeavor to save Mrs. Fish when she
started to slide down the glacier
The nxt moment he also slipped and
joined his companion 300 feet below
on a cleft' of recks. Both were
knocked unconscious. They recov
ered several hours later and cried
for help. Boy scouts in the vicinity
rendered assistance to the couple,
who were numbed with cold.
Death Held Caused jDy
Pointed Instrument.-
STATE BEGINS TESTIMONY
Wife's Whereabouts at Time
of Murder Questioned.
WOMAN'S STORY DOUBTED
Dr. Van Vlerah Tells Jury He Was
of OpinionThat Murder Victim
Had Slept Alone.
Outstanding in the routine. of the
first day's testimony in the murder
trial of Mrs. Louise Agee were two
questions. The first: Was Mrs. Agee
with her husband at the time of the
killing? The second: Was the murder
weapon the razor found in the street
In front of the Agee home?
Mrs. Agee testified before the cor
oner's jury some time ago that at the
time her husband was attacked she
was sleeping beside him and awoke at
his cries and struggles. Dr. Clyde
C. B.- Van Vlerah. 1791 Haven street,
called by neighbors to minister to the
dying man, who lived but a block dis
tant, testified yesterday afternoon
that in his examination of the prem
ises on the early morning of June 11
he noted that the back part of the
Agee bed appeared as though no one
had slept in it.
Impression Is Strang.
So strong was this Impression that
he asked someone whether or not the
Agees slept in the same room, he as
serted. On cross-examination the
physician conceded that he could not
testify positively that the north side
of the bed had not been slept in the
night of the murder.
In the street about 35 feet in front
of the Agee home was found a black
handled razor which the state has
contended showed blood stains and.
was the murder weapon. The defense,
though it has introduced no evidence
as yet, is Insisting that the razor
was not smeared with Agee's life
blood, and that it was not the weapon
which severed the arteries of his
neck. A six-year-old son of the cou
ple told the authorities some time ago
that his father had such a razor, but
Mrs. Agee denied it.
Because of the fact that the death
wound, which was about eight inches
long and extended from the adam's
apple to the right ear, was consid
erably deeper in the center than at
either end. John A. Collier, attorney
for Mrs. Agee, offered the theory that
it was inflicted with a knife or other
sharp-pointed instrument.
Both Dr. Van Vlerah and Dr. Frank
R. Menne, who conducted the autopsy.
(Concluded on Page 4, Column 3.
NOW,
Executive Action Follows Decis
ion by Court That He Is
Not Immune.
SPRINGFIELD, 111., July 26. Gov
ernor Small, from the office of one
of his counsel in Chicago, was re
ported tonight, according to word re
ceived here, to have offered to sur
render himself without resistance to
Sangamon county authorities on war
rants charging embezzlement of state
"To the sheriff of Sangamon county:
funds while treasurer of Illinois.
Sheriff Mester announced last to
night he had received the following
message from Chicago:
This is to advise you that Got-
irnor Len Small is ready to submit to
you, or any of your deputies, or to the
sheriff of Cook county according to
your directions to .any persons desig
nated as agent at any time tomorrow.
Wednesday, July 27, 1921, in my of
fice. Chicago, 111., In submission to
the capias which I understand Judge
Smith has directed you to execute on
the governor. In order to conserve
all parties' rights, please advise me
when you will come to Chicago.
(Signed.) "Albert Fink, counsel for
Governor Len Small."
Sheriff Mester immediately replied
to the message, stating that he would
be prepared to take a sheriffs bond
at Governor Small's convenience, add
ing that he did1 not intend to go to
Chicago to serve the warrant.
"I will not go to Chicago to serve
warrants on Governor Small," Sheriff
Mester said. "I am sending a tele
gram to Mr. Fink, advising him that
Governor Small may give bond in
Springfield at his convenience."
State's Attorney Mortimer was ad
vised of the governor's reversal in
attitude toward ' accepting service of
writs but made no comment other
than to say he had expected the
governor to arrive at a decision to
end his resistance. '
The governor's action followed the
finding by Circuit Judge Smith today
that the chief executive of the state
is subject to arrest following his re
cent indictment. When the warrants
were not served early tonight, the
governor left the captaL
. Although Judge Smith ruled against
them. Governor Small and his counsel
still contended that the executive is
immune from arrest on the charges.
Former Governor J. W. Fifer declared
that under the court ruling the gov
ernor could be arrested for the slight
est misdemeanor.
" The judge developed his opinion as
follows:
1. That there is no such thing In
Illinois as the divine right of kings
and that the king has no counterpart
in Illinois.
2. That it is -beyond the scope of
the governor's power to call state
troops .to shield him from arrest.
3. That Governor Small, despite his
position as chief executive of the
state, is subject to arrest and prosecu
tion for any illegal acts as state
treasurer.
"The king can do no wrong" is an
ancient doctrine, but In this republic
it has never reached the application
that an elected official can do no
wrong, said the court in the opinion.
"We have been extremely fortunate
in the character and conduct of elect
ed officials, but there has never been
(Concluded on Pase 2, Column 4.)
ALL TOGETHER CRACK THE
New Issues Totaling About $30 0,
000,000 Held Sufficient for
Immediate Needs.
WASHINGTON. D. C. July. 26. Sec
retary Mellon today offered for sub
scription two new series of treasury
certificates, the combined offering be
ing for about $300,000,000. Both issues
are dated August 1. one maturing in
six months with interest at 514 per
cent and the other maturing in one
year with interest at 5 per cent.
With this issue the treasury, it was
believed, would be in a position to
meet any demands made on it by the
war finance corporation in connection
with settlements with the railroads
under the plan submitted to congress
today by President Harding.
On August 16, it was explained, the
treasury has certificate maturities
of about $150,000,000 to meet and in
addition it is estimated about $100,-
000,000 will be needed for current
payments to the railroads under the
revolving fund and other sections of
the transportation act. already ad
justed.
The remaining $50,000,000 plus the
treasury's cash on hand of some $200,
000.000, it was thought, would care
for current expenses and any pre
liminary withdrawals on account the
corporation might make, if its pow
ers are broadened by congress, while
at the same time clearing the way
for what financing the treasury may
have to do should the corporation call
for its total balance of nearly $400,
000,000 to use in making advances to
the railroads.
In view of the August 1 issue of
certificates, another issue on August
15 was held unlikely., though an of
fering of new short-term notes on
September 1 was expected.
DELUGE FLOODS STREETS
Cloudburst Delays Train Service in
Mandan, X. D., Region.
MANDAN, N. D., July 26. Flooded
streets and delayed train service re
sulted this morning from what was
believed to have been a cloudburst
here last night. The water in the
Heart river blocked westbound trains
while the streets were flooded to the
depth of the curb.
ST. PAUL. July 26. Northern Fa
cific .railway offices here this morn
ing reported that train service out of
Mandan was delayed because of heavy
rains in that vicinity. At Lyons the
tracks were covered with three or
feet of water.
UNMASKED MEN ROB BANK
Two Girl Employes Are Held Up
and $1038 Is Procured.
REDDING. Cal., July 26. Two un
masked men held up the bank at Fall
River Mills, Shasta county, late today
and procured $1038 in currency and
sllVer.
One man entered the bank on the
pretense of cashing a pay check and
held up two girl-employes, the other
man staying outside. The men es
caped. WHIPT
Question at Hearing Is
Strenuously Fought.
ANSWER IS PERMITTED
Commission, However, Rules
Against Further Probe.
BABC0CK QUIZ CLOSED
Company Counsel Surprises Every
one by Failing to Touch on
Many Vital Issues.
SALEM. Or., July 26. (Special.)
Fear that the city of Portland de
sired to throw open the question of
valuations placed on the propertties
of the Pacific Telephone & Telegraph
company in Oregon caused attorneys
for the telephone company to enter
strenuous objections with the public
service commission against permit
ting E. C. Willard. consulting engi
neer of the city of Portland, to an
swer a question bearing on this sub
ject. ,
Attorney Tomlinson opened his di
rect questioning of Mr. Willard by
a request that he state to the com
mission how much of the valuation
placed on the telephone properties
by the public service commission in
1916 consisted of intangible assets.
Hullnjt la Demanded.
Before the witness ha'd opportunity
to answer the question, John H. Mc
Nary, attorney for the company,
whose chief function in the present
case seems to be confined to enter
ing objections, rose to his feet and
demanded that the commission rule
on the line of testimony which would
be permitted in the present case.
He explained that it was a' rehear
ing and that he understood that it
would be confined to new testimony
and a review of the rekords in the
present case. xie oDjectea to going
back into an order issued in 1916 in
the present case.
Attorney Tomlinson took the stand
that Inasmuch as it was the duty of
the commission to correct any error
that might be discovered in previous
orders, the ' testimony concerning the
valuation of properties should be ad
mitted in the record.
Aid of City Is Offered.
He said that, while the city had
no desire to attack the valuations.
It was the desire of the city to aid
tne commission in determining if it
was necessary to go into the valua
tions for the purpose of making
downward revision.
Luairraan w imams ordered a re
cess that members of the commis
sion might consider the arguments
offered by the attorneys. When the
recess ended Chairman Williams an
nounced that the witness would be
permitted to answer the question, but
that future questions of similar na
ture must be restricted to the valu
ation of replacements, extensions and
betterments made by the company
since 1916.
Willard Gives Opinion.
With this ruling Mr. Willard gave
as his opinion that the intangible as
sets Included in the valuation totaled
approximately $2,000,000. Practically
all of the testimony given under di
rect questioning by Mr. Willard was in
support of charts and exhibits show
ing decreases in costs of materials of
all kinds and decreases in . the cost
of labor throughout the United States.
He also presented exhibits showing
comparisons in telephone, rates of
various cities as well as valuations of
telephone properties in other states as
compared with the Oregon valuation.
Using data furnished to the city by
the telephotie company, the witness
testified that the Pacific Telephone &
Telegraph company in Oregon had
paid a total of $744,423.22 to the
Western Electric company for sup
plies during 1320.
Fntnre Diwuulo. Expected.
There was no further discussion of
this point today either In direct or
cross-examination, but it ws consid
ered certain that these figures would
form the basis for the future discus
sion of the inter-relation of the West
ern Electric company and the local
telephone company.
Among the points brought out in
the direct examination of Mr. Willard,
in addition to his statistical testi
mony, was the ract that measured
service with such a device known as
the telechronometer and described by
Major Babcock when he occupied the
stand would be a more equitable man
ner in which to provide rates for
small telephone user.
The witness declared that he had
seen the measuring device in opera
tion in Everett and gave aa his opin
ion that if the instrument was put to
use In Oregon it would reduce rates
to a large proportion of telephone
users and perhaps increase the rates
to large telephone users.
Depreciation Held Small.
Mr. Willard also told the commis
sion that because of the development
of the telephone art he was of the
opinion that the depreciation of the
company's properties in Oregon would
net be as great in the future as In the
past.
Attorney Shaw passed an hour
(Concluded oa fact 13, Column &-)
Lower Division Dam in Clackamas
River and Canal or Tunnel .
Are Projected Extensions.
THE OREGONIAN NEWS BUREAU.
Washington, D. C, July 26. Applica
tion has been filed by the Portland
Railway, Light & Power company
with the federal power commission
for a preliminary permit for a pro
posed future addition to its Oak Grove
project, on Oak Grove creek near the
mouth of the Clackamas river, in
Clackamas county, Oregon.
This development contemplated the
construction of a low diversion, dam
in the Clackamas river and a tunnel
or canal four miles long connecting
with the Oak Grove conduit.
At a later date the low diversion
dam would be replaced by a storage
dam 100 to 150 feet high.
O. B. Coldwell, vice-president of the
Portland Railway, Light & Power
company, said last night that the ad
ditional filing was merely in keeping
with the policy of the company to
keep ahead of the requirements for
power needed in the city. "The time
at which the development of this
project will commence depends en
tirely upon the business conditions,"
he said.
Preliminary investigations have
been carried on with respect to the
construction of the dam and the build
ings and the testing of suitable foun
dations has been made.
ACTION ON PEACE IS DUE
Proclamation Recommendations
May Go to Harding Next Week.
WASHINGTON, D. C, July 26.
Recommendations relative to the is
suance of a peace proclamation prob
ably will be submitted to President
Harding within the next week, Attorney-General
Daugherty announced
today.
Mr. Daugherty said study of the
vast amount of war-time legislation
necessary to advise the president of
the effect of a peace proclamation on
the status of war-time laws was pro
gressing rapidly and he hoped to for
ward his opinion in the course of a
week. '.
MAN IS ALMOST BLINDED
Face Badly Lacerated by Blast;
Sight May Be Saved.
SALEM. Or., July 26. Francis
Blackner, 38, a farmer residing in
Kaiser Bottom, near Salem, stumbled
blindly for a quarter of a mile this
morning before reaching assistance
as the result of an explosion of a
blasting gun while cutting wood.
The blast lacerated his face and
hands, but physicians believe his
sight will be saved.
Blackner's wife is in a Portland
hospital undergoing an operation,
and he expressed the wish that she
be not told of his accident.
FRANCE TO STAY LONGER
American Senator to Remain in
Russia Few Days More.
RIGA, July 26. Senator France
has decided to prolong his stay in
Russia a few days. He is expected
to return to Riga July 30 and from
here will go to Berlin. He has sent
a telegram reserving a berth on the
steamer Rotterdam, which will be
due to sail from Rotterdam for New
Tork August 17.
In his message M. France said
that he was in good health and hav
ing an interesting trip.
INDEX OF TODAY'S NEWS
The Weather.
YESTERDAY'S Maximum temperature, 74
degrees; minimum. 53 degrees.
TODAY'S Fair; northwesterly wind.
Foreign.
Many signs point to peace in Erin. Page 3.
National.
Japan decides to Join unreservedly in dis
armament conference. Page 2.
Senate makes early response to president's
plea in behalf of roads. Page 1.
Washington rouaed over pellagra scare
wUile southern states protest- Page 5.
Portland Railway. Light & Power com
pany seeks federal permit for exten
sions. Pace 1.
House committee opposes sales tax.
Page 14.
Rate overhauling in Fordney tariff bill
advised. Page 14.
Army to be cut to 150.000 by July 31.
Page 2.
Russians probably will yield to Hoover's
terms, says Mark Sullivan. Page 3.
Secretary Mellon offers new certificates
to meet railroad settlement demands.
Page 1.
Domestic.
Governor Small to submit to arrest.
Pase 1.
Pacific Northwest.
Washington sells last bonus bonds. Page 7.
Sheriff to follow Brumfields trail. Page 4.
Pittock will is held to be valid. Page 1.
President of Purdue found dead In preci
pice. Page 1.
Phone company officials fear cut in valu
ation. Page 1.
Sports.
Pacific Coast league resulta: Portland 4.
Vernon 7; San Francisco 12. Salt Lake
O; Ixs Angeles 3. Sacramento Seattle
game postponed. ' Page lL
Change of owners aids Seattle ciuds.
Page 12.
Twelve Seattle anglers will compete here.
Page 12.
Confessions read to ball plot Jury. Page 12.
American to try swimming channel.
Page 13.
Commercial and Marine.
Country trading in wheat is slight. Page 21.
Wheat market strengthened at Chicago.
Paga 21.
Stock trading is active. Page 21.
Japanese steamer begins new service.
Page 20.
Portland and Vicinity.
Razor is target for Agee defense. Page 1.
Committee for ban on for-hlre stands.
Page 10.
TCatar front Improvemeunt by private cor
poration suggested. Page 11.
State will plant 12,000,000 trout this year.
Page 10.
Message in Behalf of
Roads Effective.
ACTION STARTED IN SENATE
Extension of Finance Corpor
ation Power Proposed.
FARM RELIEF IS ASSURED
Substitute for Norrls Bill Submitted
to Lawmakers Fight Over
Measure Is expected.
FEATURES OF PRESIDENTS
PLEA FOR ROADS, FARMS.
Government is morally and J
legally bound to fund railroad f
debts and provide agricultural a
credits. 4
Proposal that war finance
corporation take charge of
funding railroad debts would
cause no added debt or new tax
burden.
Railway claims based on in- t
efficiency of labor during the 4
war to be waived for the pres- J
ent to hasten settlement with- 4
out surrender of any rights. f
Justice of funding railroad I
indebtedness to the government I
has at no time been questioned 4
I believe it essential to re- I
store railway activities and es-
eential to the country's good 7
fortune to hasten both funding 4
and settlement. t
There is no thought to osk 4
congress for additional funds. I
The railroad administration has, 4
or will have, ample securities to J
meet all requirements.
The question of our obliga-
tions cannot be raised, and the
wisdom of affording early relief ' I
is not to be doubted. J
This corporation has proved 4
itself so helpful in relief thus t
far undertaken that I cannot 4
help but believe that its broad- t
ened powers will enable it to 4
meet the nation-wide (agrlcul-
tural) emergency. 4
WASHINGTON, D. C. July 26.
Partial response was made Immedi
ately by congress today to a special
message from President Harding re
questing that powers of the war
finance corporation be broadened to
take charge of funding upward of
$500,000,000 of railroad debts and to
provide additional farm credits.
The president in his message de
clared that the government was
"morally and legally bound" to fund
the railroad debts, and was under
"an impelling moral obligation" to
provide agricultural credits.
Tie first step toward meeting the
second of the two requests provision
for additional farm credits had been
taken in the senate before the mes
sage was read. Senator Kellogg, re
publican, Minnesota, introduced a bill
drafted by Secretary Hoover and Di
rector Meyer of the war finance cor
poration, and said to have the ap
proval of the president, as a substi
tute for the pending Norrls bill to
create a $100,000,000 farm export cor
poration. The bill embraced the pres
ident's suggestions to empower the
war finance corporation, instead of a
new federal corporation, as provided
in the Norris bill, to advance credits
for agricultural exports.
No New Harden Imposed.
The message dealt particularly with
railroad financing and declared the
proposal that the war finance cor
poration take charge of funding the
railroad . debts to the government
would cause "no added expense, no
added liability, no added tax burden."
The president described the pro
posal as 'Vi simple remedy," contem
plating receipts and disposition by
the corporation of "ample securities"
deposited by the railroads.
The message was referred by the
senate to its interstate commerce
committee, but Chairman Cummins, in
ill health, was "out of the city, and
when, the railroad legislation . would
be taken up was in doubt. Leaders,
however, expected action within the
next fortnight. Several senators said
privately that they would fight the
legislation.
Speedy Settlement Aim
Railway claims, based on the "in
efficiency of labor" during the war,
the president said, were tcr be waived
for the present to hasten settlement
without surrender of any right in
court. Although the railways owe
the government large sums, the presi
dent said, the government also owed
the railroads large sums on various
accounts.
"It is merely the grant of autnority
necessary to enable a most useful
and efficient government agency to
use Its available funds to purchase
securities for which congress already
has authorized the issue and turn
them into channels of finance ready
to float them." the message said.
"The contract covering operation
provided that the railways stmuid "be
Concluded on 'al 4, Column l.j
Iran 101.0