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lj-V i 0,.HW Postoff lee as Second-Class Matter
PORTLAND, OREGON, THURSDAY, AUGUST 4, 1921
PRICE FIVE CENTS
FEDERAL- BANKERS
RESENT CRITICISM
WIFE OF POLICEMAN
IS DROWNED IN SURF
BRITISH LEADERS
SEEK FAVOR HERE
STREET CARS STOP
IN PES MOINES, IA.
ACTO BUSES AXD WAGONS TO
TRANSPORT CROWDS.
GIFTS OF TROPHIES
OF WAR ARE HELD UP
PRICE OF COAL HERE
Drnnom m rrn a tymvi
BRITISH TO BUILD
4 FAST CRUISERS
GETS BIG PROFITS
MRS. R. Ii. WHITES IDES CAUGHT
IX DEEP WATER.
HOUSE ORDERS MEASURE SENT
BACK TO COMMITTEE.
DEALER MAKES REDUCTION TO
STIMULATE BUYING.
PARENT COMPANY
V
V
Fistic Battle Threatened
at Hearing.
EX-CONTROLLER PASSES LIE
Harding Almost Comes to
. Blows With Williams.
ALL" CHARGES ARE DENIED
Allegation That Speculators Got
Credit at Farmers Expense
Laid to Jealousy.
WASHINGTON. D. C, Aug. 3. Crit
icism of federal reserve system credit
policies continued today before a con
cessional commission by John Skel
ton Williams, former controller of
the currency, aroused resentment by
the system's two highest officers.
Governor Harding of the reserve board
and Governor Strong of the New Tork
reserve bank. In one of the frequent
verbal interchanges Governor Hard
ing charged across the committee
room, swinging his fist, but was halt
ed by struggling associates just in
front of his adversary, who remained
cool, but was rising for the threat
ened encounter.
A few minutes later Mr. Strong,
while reading to the commission a
report which charged Mr. Williams
with "false and misleading state
ments," was interrupted by the for
mer controller, who shouted: "That
statement of yours Is false."
"Il'ii a Mr," Says Mr. Williams).
Governor Strong resumed reading
and presently referred to Mr. Will
lams as "being jealous of his preroga
tives." "And that's a lie, too," the latter
Interjected.
"At this point I request the com
mission to require the controller to
make oath whether he has stated
the whole truth or not," Governor
Strong exclaimed.
Chairman Anderson ruled amid the
confusion that it was "not feasible to
adopt the policy at this stage of the
game."
Both federal reserve officials, with
a number of associates, had sat appar
ently unmoved during two days, along
with an audience which numbered
many senators and representatives
allied with the "agricultural bloc" in
congress, while Mr. Williams elabor
ated three general charges. He said
first that the board had countenanced
Undue lending to a New York banking
group during the last two years, for
speculative uses, while forcing liqui
dation in southern and western agri
cultural districts and that it had al
lowed extortionate Interest charges
and generally failed to "ease down"
inflation.
Harding Replica to Charges.
Governor Harding today rose out
of the audience and demanded a hear
ing on personal grounds, to deny al
legations concerning himself as Mr.
Williams had made them, and present
ly, with Governor Strong, produced
e. Am i . i . . i
, '-""'""""M i"es ot reserve
officers correspondence and reports ,
to combat Mr. Williams' criticisms.
v. c. "litis ana memoranda
K.r A , - 11 ' i ' 1
, nuinraa ana wnicn he.l
to tlla associates in I
me reserve board during 1920 and .
;1921, protesting their policy and
course, Governor Harding demanded
and received permission to read a
letter of response which the board
made to Mr. Wllilams in 1921.
"The federal reserve board feels
constrained to say." the letter said,
"that your action . . . has dem
onstrated the futility' of discussions
with you on questions of honor 6r
fair play."
Mr. Williams' criticism of the board's
handling of credit problems and con
tained in the correspondence and
reported to the congressional com
mission were characterized in Gov
ernor Harding's letter as "igndrant.
inaccurate and misleading."
CritirlMia Termed Trivial.
"The object seems to have been
merely to make a record during your
tenure of office of statements to be
handed to the public later," the let
ter said, '"as an appeal to prejudices
and sympathies and not to reason."
It further said that Mr. Williams'
criticisms generally were "trivial. Ir
relevant or susceptible of no definite
constructive interpretation."
As to the criticism of lending to
New York banks, the Harding letter
said that out of a "disordered mass of
details and statements" forwarded by
Mr. Williams, it had been "impossible
for the board to understand what
action" he desired taken. The letter
said also that out of 80 meetings of
the board preceding Mr. Williams'
retirement from office he had at
tended 18 during their entire time, 18
during a part of the time and during
44 was absent.
It was charged also that Mr. Will
iams had circulated , the board letter
on credit matters and refused to tell
the board to what person or persons
they had been sent:
Polios (in" Is Answer.
The reading of the letter resulted
In a remark from Mr. Williams about
"poison gas" and retorts in which
(Concluded on Face 2. Column 4.)
Death Follows Daring Rescue by
Young Men, Arter Little
Daughter Cries for Help.
ROCK AW AT, Or., Aug. 3. (Spe
cial.) A daring rescue n the surf
today, following: a young: daughter's
cries for help, failed to save the life
of Mrs. R. L. .Whitesides of Portland,
wife of a special police officer. She
died following- 2M hours of artificial
respiration.
Mrs. Whitesides had been bathing
in the Rockaway surf with her
daughter, Marie, and sister. Mrs.
Amelia Hogg. The little- girl saw
her mother venture out into water
six feet deep. After hurrying- to
shore the" girl called for help. Mrs.
Whitesides had drifted several hun
dred feet down the beach. Three
boys Ray Peterson, Delbert Koonts
and Norman Olson attempted to res
cue her. Finally Olson, assisted by
T. T. Todd and C. I. Seymour, brought
her to shore.
First aid was administered until
the arrival of the Barview lifesaving
crtw. Dr. W. C. Hawk, the attending
physician, said death might have been
due to an attack of heart disease.
J. J. Krebs, acting coroner, took
charge of the body and announced
that no inquest would be held.
. Mrs. Whitesides is survived by her
husband, two daughters, Edna,. 15
years, old, and Marie, 13, and her
father and three brothers of Cedar
Mills. Or.
Funeral services will be held In
Portland.
i Mrs. Lulu Whitesides, lived at 63
Jessup street west, and was the wife
of Robert L. Whitesides, a special
patrolman who was shot and wounded
on July 19 by Andrew Holeman. in a
I quarrel with Al Gruman, a taxicab
driver. Mrs. Whitesides went to the
beach at Bar View last Friday. She
was 37 years old and the daughter
of Charles Hickethier.
RATE RISE TO BE FOUGHT
Southern Pacific Efrort to Get In
crease Arouses Lumbermen.
Proposed Increases in the rates on
lumber shipments I from points in
western Oregon and western Wash
ington to El Paso. Tex., will be op
posed by the West Coast Lumbermen's
association at a hearing to be held
before Examiner Howell of the inter
state commerce commission in the
courthouse at 10 o'clock this rrtorn'ng.
The Southern Pacific line had pro
posed an increase of 5 cents a hun
dred pounds on shipments over its
direct line to El Paso, and three
lines operating by way of Denver.
Colo., had announced an increase of
6 cents a nundres pounds.
The West Coast Lumbermen's asso
ciation takes the position that the
existing rates to eastern points are
now too high and any increase 's not
justified under existing condition?.
The association will-, be represented
at today's hearing by W. C. McCul
ioch. attorney, and H. N. Proebstel,
traffic manager of the organization.
EXPORTER'S HALVES PART
Sections Drifting Apart, but Tugs
Still Stand By.
ASTORIA. Or., Aug. 3. (Special.)
Captain John C. Reed, the bar pilot.
who went-an board the stranded Brit
ish steamer Canadian Exporter from
the tug Wallula last Sunday night,
returned today. He said the steamer
hrnv i,n,.t mM.h! t e n
day morning, the first crash coming
,hnnl nn hnn, MrlUr Wh.n l
f
ReeH lf North r-nwo Ihl. , 1
the two parts of the
steamer were
about 50 feet anart.
The tug Algerine and cutter, Sno
homish were still standing by, but
what they were doing he did not
know. All the members of the crew
of the ill-fated craft got off with
their personal effects, even the ship's
cat being saved, and were placed on
board the tugs.
NEWSPAPER PLANT RAIDED
Coreans Clash in Honolulu and 2 3
, Are Arrested.
HONOLULU. Aug. 3. The office of
the Pacific Times, a Corean language
newspaper, was wrecked and five
Coreans Injured todav in two raids
on the office. The disorder started in
an altercation between the staff of
the newspaper and a group of women
who came to protest against an ar
ticle which .they considered an - at
tack on the Corean Women's Benevo- I
lent society. They were expelled from j
the office, but later their husbands I
took up the dispute and a second dis-
tur banco ensued. I
Ten were arrested as a result of
I the first raid and 13 of the second.
S. K. Ham, 73, manager of the Times,
was the uost seriously injured.
CANDY PRICES ARE CUT
Firms Making 300 Per Cent Front
Slash 33 1-3 Per Cent Off.
NEW YORK. Aug. 3. A reduction
of 33 1-3 per cent in candy prices was
announced today by George W. Loft,
Inc., one of the largest candy store
firms in the city. This cut follows
closely after that of the Miller Candy
company, the president of which an
nounced that his firm, along with
several others, had been making 300
per cent profit.
Coincident with the announcement
of reduced prices it was learned that
the wages of the Loft employes would
be reduced 12 Hi per cent.
Politics Seen in Recent
Hot Interchanges.
PARTY WOULD OUST PREMIER
Coming Conference Vital to
Both Factions.
HOME ISSUES PARAMOUNT
Xorthcliffe's Purpose as Well as
That of Lloyd George Clear,
Declares Mark Sullivan.
BY MARK SULLIVAN.
(Copyright by the New Tork Evening
Post, Inc. Published by Arrangement.)
WASHINGTON, D. C Aug. 3. (Spe
cial.) Probab'y a 'certain degree of
injustice is done to Great Britain by
the puzzled doubt with which Amer
ica has seen the British government
suggesting a preliminary conference
prior to the disarmament conference
and the apparent suggestion that
Lloyd George would like to come to
America for such a preliminary con
f erence.
These suggestions would best be
read, not as reflecting any disposi
tion on-the part of Great Britain to
anything inconsistent with perfect
candor in the conduct of ths main
conference, but rather as episodes
arising out of British domestic poli
tics. As such they are pf a piece with
the curious use made last week by
L'.oyd George and Lord Northcliffe
of America's front yard as a clothes
line. Lord Northcliffe and his friends
believe that Lloyd George's power at
home is waning. They believe, in
deed, that he may lose his position as
premier almost any day. Lord North
cliffe, it is needless to say, would be
most happy to hurry that event. One
of the best ways to accelerate it, ob
viously, would be to convince the
British public that Lloyd George is
unpopular in America-and -would be
an unhappy choice to represent Great
Britain-at the conference here.
Premier's Position Clear.
On the other hand, if Lloyd George
has any fear that his power at home
is slipping, there could be no better
way of Intrenching himself than by
making a demonstration to the Brit
ish public that he is popular In Amer
ica and is just the man to represent
Great Britain at the conference.
The forces opposed to Lloyd George
hope to drive him out of power before
the date of the conference, and Lord
(Concluded on Pag 2. Column 2.)
WE KNOW WHAT THE PRESIDENT SAID ABOUT PEACE, DISARMAMENT, ETC., BUT WHAT
.
111 IMA jm
Railway Quits Operation as Re
sult of Inability to Continue
on Fares Allowed by Law.
DES MOINES, la., Aug. 3. On the
eve of the cessation of street car serv
ice at midnight tonight. Des Moines
hurriedly was making preparations
to transport the 80,000 or more per
sons who have heretofore - depended
upon street cars to take them to and
from their daily tasks.
Nearly every conceivable sugges
tion was made to the city council, in
cluding use of the street car tracks
by buses equipped with flanged
wheels, licensing of' buses for one
year, emergency licenses for 'automo
bile owners who wish to enter the
transportation field, organization of
automobile owners into classes ac
cording to whether they transport
people free or charge for the service,
and a wholesale "pick up" campaign
of aiding the buses in transporting
citizens.
No automobile whatever Its appear
ance and condition is despised under
present circumstances. Even wagons
and carts will be utilized in the outT
lying districts, having been hauled
from their promised oblivion to meet
the emergency.
Suspension of the street car service
is the culmination of a struggle of
several years. Company officials said
that the situation is the direct result
of the inability of the company to op
erate under a 6-cent franchise with
out bus competition and under an
8-cent fare with unrestricted bus com
petition. The company hjs been in
the hands of receivers for several
years and it was at the request of
Receiver Chambers and bondholders
that a court order was issued yester
day bringing about ces&ation of serv
ice. The order deciarea mat me pruy
erty could not be operated longer
without financial prejudice to the
bondholders , and general creditors,
and that it must therefore be sold to
satisfy bonded and general debts.
Tha total outstanding bonds of the
company amounts to $4,875, 000. De
bentures and notes bring the total in
debtedness of the company up to
$7. 500. 000. Approximately 700 persons
employed by' the company will sbe
thrown out of work when the cars
are taken to the barns tonight,
SAM BROWNE BELT 0KEH
Gay Leather Waistband Prescribed
for Oregon Guardsmen.
SALEM. Or., Aug. 3. (Special.)
The festive Sam Browne belt was ad
mitted to the Oregon national guard
today after having been held on the
anxious seat for more than a month.
Adjutant-General White prescribed
the Sam Browne for the citizen sol
diery of Oregon only after an unsuc
cessful search for some authority or
plan of avoiding the gay shoulder
loop and waist band of shining leath
er, which he was said to regard as
"altogether too European."
During the world war the Sam
Browne was worn by overseas offi
cers only and all others were forbid
den its use.
DOES HE SAY IN A CASE LIKE THIS?
Appropriation of $400,000 to Pro
vide for Distribution Is Cut
Out; Many Guns on Hand.
WASHINGTON. D. C, Aug. 3.
After five hours of debate a senate
bill authorizing distribution , to states
and municipalities of cannon and
other war materials captured by the
Americans from the Germans was
recommitted today by the house to the
military committee by a vote of 103
to 99.
A section appropriating $400,000 for
distribution was eliminated on a point
of order by Representative Garrett of
Tennessee, acting democratic leader,
but the house, by a vote of 126 to 120,
immediately rejected an amendment
to require communities receiving the
captured articles to pay all trans
portation and packing charges.
Before the motion was adopted, the
bill, which provides that states should
snare in the distribution in propor
tion to the number of troops furnished
during the war, was intended so that
the distribution would be made by
congressional delegations, instead of
by governors, as the senate had de
cided. Chairman Kahn of the military com
mittee reported that 84,000 trophies,
including 70,000 rifles, 10,000 machine
guns, and 2200 field guns and trench
mortars were in storage.
WORKER IS ELECTROCUTED
Lineman of Telephone Company Is
Killed Near Tillamook.
TILLAMOOK. Or.. Aug. 3. (Special.)
Stanley Fox was killed instantly
today by coming in contact with an
electric wire belonging to the Coast
Power company. Fox worked for the
Mutual Telephone company, and with
Horace Keyes was working on the
telephone line two miles north of this
city. Fox was on one pole and Keyes
on another.
When Fox caught hold of the elec
tric wire he called to Keyes to cut
the wire, but before Keyes did fo the
electric current passed through Fox
and killed him, at the same time burn
ing his body. As the body fell it
lighted on a barb wire fence, breaking
the neck."
Fox was married and had one child.
BOY RESCUER DROWNS
Glen Lewis, 15, Loses Life Trying
- to Save Carol Clark. -
DAYTON. Or., Aug. 3. (Special.)
While trying to rescue a girl in
danger of drowning in the Yamhill
river. Glen Lewis, 15, son of Mr. and
Mrs. J. G. Lewis, was drowned near
the Lafayette locks this afternoon.
His body was recovered by Fred
Holmes of Lafayette.
The girl young Lewis tried to res
cue was Carol Clark, daughter of
Rev. K K. Clark, pastor of the Meth
odist church here. The rescuer
reached the girl and started for shore
with her. but became exhausted and
sank. The girl was rescued by Roy
Amy of Newberg.
i
Pacific Phone System
Pays Large Dividend.
INTEREST ON LOAN HEAVY
Automatic Plant in Arleta Is
Rebuilt Equipment.
SERVICE AGAIN ATTACKED
Patrons Tell State Investigators
of Inconveniences and Burdens
Imposed by Monopoly.
A total of $2,072,901 was paid in
1920 to the American Telephone &
Telegraph company by the Pacific
Telephone & Telegraph company, ao--cording
to figures presented yester
day to the public service commission
by James T. Shaw, rate hearing at
torney for the company, at the re
quest of Assistant City Attorney
lomlinson.
Of this amount, SI. 407, 360 was a 6
per cent dividend payment dh 73.3 per
cent of the preferred stock of the Pa
cific company, which the parent com
pany owns; $190,000 was note interest
on loans amounting'to $8,133,000, and
$175,541 was for payment of rental of,
instruments supplied by the parent
company, and payment for other mis
cellaneous service. ,
Hearing; Bound to Drag.
Thai the rehearing will occupy the
greater part of next week seems in
evitable. Members of the commission
have no disposition to cut off any
testimony and have thrown the barj
down to receive all the light possible
on the telephone situation. Natur.
ally, in so doing, the case Is dragging
somewhat, and it is not probable that
the city will conclude its case before
tonight or tomorrow.
The hearing yesterday, for the most
part, was restricted to complaints on
service and on present rates. And a
numbtr of the witnesses had waited
for two days for the opportunity of
reciting their tales of woe to the
members of the commission.
Assistant City Attorney Tomllnson.
evidently acting on a "hunch." called
C. E. Flegert. plant engineer of the
Pacific company, to the stand, and
through .leading questions developed
the fact that the automatic system
recently installed in the Arleta ex
change, which serves the Mount Scott
district generally, was purchased in
Chicago and is rebuilt equipment.
The equipment, according to. the
engineer,- was purchased at a favor
able price and was taken to the shops
of the Western Electric company in
Berkeley, Cal., where it was recon
structed and then shipped to Port
land for installation.
Attorney Tomlinson attempted to
establish the fact that the numerous
service complaints originating in the
Lents district might be traced to the
age of the equipment.
Plunt Held Serviceable.
Engineer Flegert refused to con
cede this, maintaining that the re
constructed equipment would, as
quickly as It could be fully adjusted.
give as aaequa-.e a service as new
equipment. v
At the request of Mr. Tomlinson
Attorney Shaw promised to trace the
history of the equipment and furnish
the commission complete detailed re
port on the cost of the equipment,
as well as the cost of reconstruct
ing it.
Attorney Tomlinson introduced a
copy of the original contract between
the American Telephone & Telegraph
company'and the Pacific Telephone" &
Telegraph company, with numerous
amendments. This contract, according
to Mr. Tomlinson. was supplied to him
by the officials of the Pacific com
pany, and provides only for the rental
of telephone instruments and patents
connected with such instruments.
In introducing it Into the record.
Attorney Tomlinson requested the
commission to go . over it carefully,
and to take particular note that It
was substantially ifferent from any
contract in the records of the com
mission, and different from the con
tract with the parent company and
the Southern New England Tele
phone company, a copy of which id
contained as a sample contract form
in one of the commission's telephone
orders and provides for no other serv
ice than the rental of Instruments.
Mr. Tomlinson then introduced a
statement made by the company
showing plant installations for war
purposes which are now useless. In
this connection he requested that the
commission be told whether or not
the government had paid the company
losses in constructing wartime plants.
His contention on this line was that
the cost of any such construction
should be removed from the Oregon
base rate.
Service Complaints Revived.
Everyone attending the telephone
hearing relaxed a bit in the afternoon
while Dr. J. A. Pettlt of Portland
and Attorney Shaw "swapped" obser
vations about telephone service, tele
graph rates and economic conditions
in general.
Dr. Pettit complained that the cost
of service in his office was far In
excess of what he thought it should
be. Attorney Shaw bepan his cross-
iCuiiciudcd nil Page 7, Column 1.)
Guarantee Made to Protect Con
sumers Against Loss in Further
Cuts to March 1, 192 2.
A reduction of tl.50 a ton on coal,
with a guarante to protect immedi
ate purchasers against loss in the
event of further reductions before
March 1, 1922, was announced yester
day by the Pacific Coast Coal com
pany. This reduction makes the price on
Utah and Wyoming lump and nut
coal, which is the ordinary grade
Used for heating and cooking pur
poses, $15 a ton. This is the lowest
figure quoted on coal at Portland
for some time. It was announced.
The belief was expressed that other
coal concerns in the city would meet
the reduction made by the Pacific
Coast Coal company, and that the re
duction would be general. None of
the firms, however, had announced
such reduction yesterday.
Most fuel firms here have quoted
Utah and Wyoming coal at $16.50 a
ton. although one firm reported $16.
Officials of the Pacific Coast Coal
company said the reduction was an
nounced as a result of a general buy
ers' strike. They said few consumers
had taken steps to lay in their win
ter's supply.
"There has also been a general re
ductlon in various other commodities.
and we felt that there should be a
reduction in coal prices," it was an
nounced.
The officials urged that those need
ing coal make purchases at the pres
ent time, as there are indications of
a car shortage this fall which might
hold up deliveries and cause a fuel
shortage. To encourage the pur
chase now the companies announced
their willingness to "protect custom
ers by making refund if coal prices
fall below the present figure before
March 1 of next year.
NURSE DROWNS IN RIVER
Cramps Believed to Have Caused
Death of Miss Eugcna Dillree.
Seized with cramps after diving into
deep water near the Waverley Coun
try club, Eugena Dillree, a nurse at
Sellwood hospital, was drowned in the
Willamette about 8 o'clock last night.
The body was recovered within a few
minutes by O. W. Willie. 1751 East
Thirteenth street South, but efforts
at resuscitation failed.
Miss Dillree had gone to the river
with two companions, Isabel Moulton
and Nettle Nordeen, both nurses at
the hospital. She called to them with
a smile, dived and failed to come to
the surface immediately. An alarm
was spread, which brought other bath
ers to the rescue.
The harbor patrol sped to the scene
with a pulmotor and for two hours
and a half artificial respiration was
kept up without success.
PRESIDENT SLEEPS LATE
Period or Rest Will Be Broken To
day at Welcome Festival.
LANCASTER. X. H., Aug. 3. Presi
dent Harding, who Is a guest of Sec
retary Weeks, had a taste of real
vacation today, but he promised to
break in on his period of rest and
recreation tomorrow by speaking in
Lancaster public square. The occa
sion will be a special public gather
ing to welcome him to the White
mountains.
A number of other towns are ex
pected to send delegations, but at the
president's request the ceremonies
will be kept as informal as possible.
Mr. Harding is to make only a brief
talk.
Today the president slept late and
spent several hours resting and read
ing beneath the trees.
INDEX OF TODAY'S NEWS
Tne Weather.
YESTERDAY'S Highest temperature, 73
degrees; lowest, 52; clear.'
TOUAX'S Fair, northwesterly winds.
Foreign.
Russia releases all Americans. Pape 2.
British piannlns' four fast cruisers. Page 1.
Sinn Fein dickering with Ulster party.
Party 6.
Caruso's funeral to be held today. Page 3.
National.
Gifts of war trophies are neld up by house.
Past 1.
Amendments to farm credits bill Dreclplt&te
hut contest In senate. 1'age 4.
Federal reserve bankers resent criticism
of policy. Page 1.
Ship seized as whisky-runner declared of
oona tide British registry. Page 4.
Indiana senatorial contest year hence
shows signs ol bitter strife. Page 2.
British leaders seek tavor in America to
win at home. Page 1.
Dome&tlc.
Knights ot Columbus to tight propagan
dists. Page a.
Girl mindreader startles guests by Inside
story. Page 3.
Street cars stop in Des Moines. Ia. Page 1.
Pacific Northwest.
Mrs. R. I Whitesides.. -aire of Portland
policeman, orowns at Rockaway.
page 1.
Sports.
Winged 'M" swimmers and divers being
groomed for Victoria. B. C, tourney
Page 13.
Baseball Is purged, says Judge Landls.
Page 13.
Murphy-Ortega bout Is draw. Page 13.
Commercial and Uarine.
Oregon Bartlett pears bring highest prices
in west Pago 19.
"Wheat lower at Chicago because of lack
of export orders. Page IK.
Profit-taking causea reaction in stock list.
Page 1U.
ew Europeau steamship service estab
lished out of Portland. Page 12.
Portland and Tirlnity.
Lew brain power is laid to too much, water
in skull Page 11.
Telephono rate hearing may last another
week. Page 1.
Nightshirt society threatens editor. Page
10.
iiujers are thrilled 67 style bliow. Pago L.-,
Vessels of Hood Type to
Keep Navy Up to Date.
16-INCH GUNS TO BE USED
Challenge Not Intended, Says
Speaker to Commons.
SEA LEAD HELD MENACED
Churchill Declares United States
and Japan Will Surpass Xiivy
if Programme Is Delayed.
LONDON. Aug. 3. (By the Asso
ciated Press.) The house of com
mons today voted In favor of the
government's programme to build
four warships to take the place of
obsolete vessels.
In discussing the naval estimates
in the house of commons. Lieutenant-Colonel
L. C. Amery, parliament
ary secretary of the admiralty, an
nounced that the four replacement
ships the government proposed to
build would be battle cruisers of the
Hood type, armed with 16-inch guns
and designed to obviate the need of
larger dockyards than exist.
Contending that there was no ele
ment of challenge or provocation In
this policy of replacing obsolete ships,
he said It was simply a policy cir
cumscribed' within the narrowest
limits and postponed to the very
latest dote consistent with the em
pire's safety.
Vnied States Programme t'p.
Alluding to the building pro
grammes of the United States and
Japan. Colonel Amery argued that
the admiralty, by proposing comple
tion of only these four ships by 1925.
was laying itself open to the charge
ot accepting the risk that the British
navy would temporarily be inferior
in strength to the navies of other
powers, but the government was fac
ing this risk to avoid any atep tend
ing to invite fresh competition on the
eve of a disarmament conference.
The object of the conference, he
said, was to endeavor to obtain by
agreeement no further expansion of
the navies of the three greatest naval
powers, but as it was quite unlikely
that the other powers participating
would offer to scrap ships already
built or under construction, it was
obvious that the building of these
tour ships, or even twice their num
ber, could not affect the problem
before the conference.
His statement was followed by an
animated discussion involving many
references to the relative positions of
Ureat Britain, the United Slates and
Japan, and revealing the intense in
terest taken in the proposed Washing
ton conference.
Superiority Held Endangered.
Winston Spencer Churchill, secre
tary for the colonies, replying for the
government, made reference to the
big building programmes in both the
United Stales and Japan. He con
tended that there could be no con
ceivable cause for a quarrel with,
either country. Still the fact re
mained that if England delayed an
other year the construction of neces
sary vital units, she would have to
face a position of definite and perhaps
final naval inferiority; she would
sink to third naval power, and hav
ing sunk there might never be able
to recover.
"We should exist as a great power
in the world only on sufferance." he
continued. "Wo have never done that.
Profound peace might continue to
rule for many years, but during that
peace everyone would know Ureat
Britain's day was done. Everywhere
it will be known that the essential
foundation of the British empire haa
been erased, and that this Island, de
pending for four-fifths of its food
and all of its economic wealth and
being as a modern state upon sea
borne commerce, was powerless to
keep itself alive, except by good wilL
Conference ot Relevant.
"High hopes are based on the
Washington conference for the bene
fit ot mankind, but unless we can as
sume that the ships now building in
America and Japan will be scrapped,
then no disarmament proposal which
might be agreed on at Washington
would be relevant to the decision this
house must take on the construction
of these four ships.
"The one-power standard Is the
barest minimum England can con
ceivably adopt, and delay already has
occurred which has reduced that
minimum to the finest possible mar
gin." Mr. Churchill exhorted the house to
avoid a path which might lead to dis
aster and force Great Britain to make
compromising or entangling agree
ments in the desperate hope of sup
plementing her own resources by the
strength of others.
"Let us stand on our own feet." he
exclaimed. "Only in that way at the .
"Washington conference shall we be
able to play the part of the real
peacemaker, and only in that way
shall we be able to walk hand in
hand with the United States, not as a
suppliant for protection, but as ei.ua.
partners In a common victory ani :
the fair future ot the world."
Lady Aslor declared that the Unit- ;
Slates was in earnest In saying ;t
.iCoududed ua Pafce . Coiauiu i.