GCT. o i VOL. L.X NO. 19.014 Entered at Port In d (Oregon) ' y'x'- Paetofflce Seon1-C!ass Matter. PORTLAND, OREGON, SATURDAY, OCTOBER 29, 1921 PRICE FIVE CENTS GOTHi MARSHAL WILL NOT RIVER OUT OF BANKS; HIGHWAY IS FLOODED WYXOOCHE OVERFLOWS AS RESULT OF RAIJf DOWXPOCR. INDEPENDENTS LEAD NORTH DAKOTA VOTE REJECTS 3 ROBBERS IN AUTO HOLD UP 4 PERSONS MACHINE IS STOLEN; FAST WORK IS DONE BY TRIO. TOUCH LIQUOR HERE FOCH, WHILE IN AMERICA, B! MARSHAL 4 1 ' 'lll 1 CAPTURED L NES TO ASK NEW AT BOND RING SOUGHT FDCH LEVY XOX-PARTISAJT STROXGHOLD IS YET TO BE COUNTED. WILL OBSERVE LAW. PAY CUT AT ONCE Plans to Go Ahead, Say GRADUATED French War Hero Wel comed to America. U.S. DESTROYERS IN ESCORT Planes Also Go to Sea to Join in Greeting. CROWDS PAY TRIBUTE General Pershing Is First to Shake Ilund of Visitor Other No tables Also on Hand. WW YORK, Oct. 28. Marshal Foch of France came to America today. He captured New York and then sped away to conquer the rest of the country. General Pershing- waa first to wel come his old comrade to these shores. The marshal's welcome began 100 miles out at sea. There the liner Paris, bearing him to the new world, was joined by 12 American destroy ers. For a time, the war craft had It all to themselves, but soon through the mist broke a squadron of sea planes. The marshal raised his head at the familiar sound of sputtering motors. The Paris passed the George Wash ington which had raced into port with General Pershing in order that he might be first to grasp the marshal's hand as he stepped on American soil, en route to the American Legion na tional convention at Kansas City, Mo. Tonight Marshal Foch went to Wash ington to call on President Harding. Notables Join in Welcome. At quarantine came another wel oome. Transferred to the navy cutter Vigilant, the soldier of France clasped hands with Ambassador Jusserand. Assistant Secretary of the Navy Roosevelt and many other motables. But the series of receptions had hardly begun. The next came off Fort Jay, when guns thundered a general's salute. And the oil max Landing a few yards from Gastle Garden where his famous country man, Lafayette, had1 set foot on Amer ican soil, the marshal found awaiting him a reception that even his imagi nation could not have conceived. People Massed oa Streets. The wide stretch of open ground had been converted into a great stadium, the walls of which were sky-scrapers, stretching stories high. At every window, on the roofs, e-ven dut of dizzy cornices, 25 stories above the street were perched men and women waving the flags of America and France. On the streets below were massed a great army of welcomoTa men, women and little children. Indeed, It seemed as if all the little girls in iNew York were there with bouquets which they wished to press Into the marshal's hands. As soon as the soldierly little fig ure in the light-blue uniform of France stepped off the pier a mighty shout arose. A few minutes previous General Pershing had appeared to the sound of ruffles and flourishes, and these were repeated for the French war hero Cap Worn at Rakish Angle. Forward stepped the marshal, his scarlet cap at a rakish angle. There was nothing of the merciless warrior In his smiling face or keen, kindly eyes, as marching straight ahead, he j advanced with hands outstretched to greet America's military leader. A bush seemed for a moment to fall over the crowds as the two men of war warmly clasped hands. Standing In the open square the pair chatted as old friends meeting at a railroad ' atation, each Intent only on the j words of the other. I When the greeting was over and ' ' i the cheering broke forth afresh. j Nearly the first of his short, choppy salutes was given to veterans of veaied an estate or 95,ooo, oi wnicn France men who had fought with !5.000 is in personal property and him on the battle-scarred plains and,'80'000 ln real 'sat valleys of the western front. The wlu Provides for the sale of . , ..... i famous pictures belonging to the es- Ordrra Taken (iood-Xatnrrdlv. . . , , ., . , tate, including the buifalo paintings. There they were, a gallant platoon ..xlaB Poor Torick," "Drifting.- and soldiers of the French artillery and ,..Good Morning." the portrait of infantry, blue devils an blrdmen, j Buffalo Bill by Rosa Bonheur and the some with empty sleeves, all . wltn painting by Beacon, "The Conquest of decorations. Next the marshal's the Prairie." glance fell upon a battalion of Amer- I lean regulars, with khaki and tin' hats. And then, a sight tenderer than! STORM LOSS $5,000,000 the rest, a group of Red Cross nurses 1 In uniforms of white. I Most of Citrus Crop in Tampico Photographers would not permit I the allied generalissimo Immediately, Stripped From Trees, to step into his car. For perhaps the TAMPA Fla., Oct. 28. Definite re flrst time In many years Marshal ports from ail portions of the Florida Foch had to take orders "Stand peninsula swept by the tropical storm there!" "Over this way."' "Hold it!" of Tuesday put the total losses at ap They came fast and furious, but they proximately 85.000,000, of which be soon were over and the marshal tween 81.500.000 to 82,000,000 repre didn't seem to mind at all being or- sents the loss ln Tampa and suburbs, dered about. j The loss of life remained at 11 to- Parade of Triumph Brg-nn. day, five in this city, two at St. Then started the parade of triumph. Petersburg and four members of the As the line of motor cars moved crew of the yacht Kona wrecked at under the elevated tracks motormen Mayport. forgot to move their trains. They Reports received by the state citrus just opened their whistles and kept Inspector's office here estimated that them open. ' .60 per cent of the citrus fruit ln the There were no steps to be seen on district, comprising four counties, waa ttuoclud.d oa Fas 3, Column u Xo Beverages Carried In French Soldier's Luggage, Says Dr. Andre, Personal Physician. ON BOARD MARSHAL FOCH' 3 SPECIAL TRAIN. Philadelphia. Oct. 28. (By the Associated Press.) Mar shal Foch will observe the letter and spirit of the prohibition law while in the United States. While diplomatie precedent would permit him to bring ' wine and liquor into the country for his personal use. Dr. Paul Andre, his personal physician, declared tonight that the marshal Intended to follow the American custom of taking only water with his meals. Xo wine or other liquor is being carried in the marshal's luggage, the physician said. Marshal Foch, Dr. Andre continued, has always been very temperate, drinking but little wine with his meals, even in his native France. What table wines be does use are, of the ordinary variety and he does not take any other kind of alcoholic bev erage. Dr. Andre, who Is a professor of medicine in the University of Nancy, France, has been with Marshal Foch since the war. From the day that conflict broke out in 191-4 until the armistice, the marshal, he said, has not had one sick day, not even being bothered by a cold. Dr. Andre admitted that he slightly feared American hospitality, espe cially the institution known as the banquet, but added that he felt "al most certain Marshal Foch would not suffer thereby." He said the distin guished French soldier was "a good and obedient patient." Except on spe cial occasions, the doctor said. Mar shal Foch arises each day about 7 o'clock, works hard during the day and generally retires about 10 or 1-0:30 P. M. A pipe is his best companion when the day's work la done. The marshal's train stopped but a few minutes in Philadelphia, and the entire time was occupied with the French military leader and his aides obligingly standing on the observa tion platform while newspapermen photographed them. Marshal Foch was In conference with Jules Jus serand, the French ambassador, on the journey from New York to this city. BRUMFIELD ON HIS FEET Convicted Slayer Is Regaining His Strength Rapidly. ROSEBURG, Or, Oct. 28. (Special.) Dr. R. M. Brumfield, convicted re cently for the murder of Dennis Rus- sel, walked about his cell today for the first time since be attempted sui cide. This morning he told his guards that he was feeling much stronger and asked their assistance in getting from bis cot, where he has been since he attempted to end his life by cutting deep gashes on each side of his neck. He was helped to his feet and walked around the cell twice. Several times today he exer cised in this manner and late this afternoon walked unassisted. His strength is coming back to him rapidly, the physicians say, and he will soon be in good health, again. DANCES HELD OPTIONAL Pupils Refusing to Participate Can not Be Expelled, Court Holds. SACRAMENTO, CaL, Oct. 28. Folk and other forms of dancing, even though included in the curriculum as part of the regular course in physical education or guised as exercises, can not legally be forced upon children attending the public schools of Cali fornia against the objections and con scientious scruples of their parents. I Neither does refusal to take part' in such exercises afford sufficient ground for the expulsion of pupils by boards of school trustees. The third district court of appeals here so held today in reversing judgment of the superior court of Sacramento county. MRS. CODY'S WILL FILED Widow of Buffalo Bill Leaves Estate of $95,000. CODT. Wyo., Oct. 28. The will of Louisa M. Cody, widow of Colonel died at her home here last week, was fl'ed for probato yesterday and re- tripped from the trees by the wind. " Carrier Presidents. UNIONS' STAND IS IGNORED Rate Drop After Second Re duction Promised. NOTICES TO BE POSTED Appeal to Be Made to Labor Board if Employes Refuse' to Agree. Strike Recall Messages Out. CHICAGO, Oct. 28. Railroad heads tonight declared the nation's carriers would go right ahead with plans to seek new wage cuts through railroad labor board hearings, despite the an nouncement from the unions that their action in calling off the strike scheduled for October 30 had been In fluenced by the board's announce ment that pay reduction petitions for any class would not be considered un til working conditions for that class had been settled. "The calling off of the strike will have no effect on the plans announced by the carriers October 14 to seek Immediate wage reductions, so that rates could be reduced," said Samuel Felton, president of the Chicago Great Western and chairman of the Association of Western Railroad Ex ecutives. Action Soon, Is Predicted. "T don't know how long, under the board's ruling, it will take to reach ,a decision on any pay-cut petition, but these petitions undoubtedly will be presented within a very short time. It will be up to the board then to decide when action should be taken. "I want It made plain, however, that we will seek these petitions in accordance with the law, posting notices of cuts, then discussing them with the employes and if no agree ment is reached, appealing to the board to settle the dispute." With the code messages officially calling off the strike sent out today, only one echo remained of the rail road crisis which for two weeks threatened to develop into a gen eral strike. 6O0 Trainmen Still on Strike. The situation was unchanged os the International & Great Northern, the Texas line where 600 trainmen started a walkout last Saturday. No order to call off the strike was sent these men, W. G. Lee, president of the trainmen, saying that the matter "is in the hands of the union officials down there." Mr. Lee. however, conferred with the labor board today and It waa known that he is making every ef fort to bring a settlement of that (Concluded onPage 4. Column 1.) THE OLD Gale Is Reported at Grays Harbor With Jib Sign of Slackening. Planking Washed Away. ABERDEEN. Wash.. Oct. 28. (Spe cial.) The Olympic highway has been inundated and planking carried away between Sternsville and Aloha by the Wynooche river overflowing its banks today. The river was still rising rapidly, and Montesano residents were apprehensive tonight lest the high tide would back up the flood waters and cause further damage The flood was caused by the heavy rain and wind storm which has been raging on Grays Harbor since yes terday, and still continues tonight. About a 50-mlle gale was reported by H. A. Benham, weather signal mas for the harbor, with no slackening in sight, at 6 o'clock tonight No damage to timber has been re ported from any of the logging com panies. Five and forty-one hundredth Inches of rain have fallen in Aber deen since the storm started Tuesday and 9.65 Inches have fallen since the first of the month, which Is 2.9 Inches more than normal for October. The Satsop river bridge, five miles above Junction of Satsop and Chehalis rivers, was reported washed out this afternoon. The loss may force tem porary suspension of logging opera tions by the Shafer camp. ASTORIA, Or., Oct. 28. (Special.) After attaining a rate of 60 miles an hour at sea, the southerly gale which continued all of yesterday and last night moderated this morning and the rain ceased. Tonight the wind at the North Head station registered 38 miles an hour from the south and the barom eter was high, ranging slightly above 30. Aside from delaying shipping at various ports, no damage was re ported. ' The weather-bound vessels in the local harbor include the steam ers Colusa, Munaires, Begone No. 1, Curacao, Klso Maru and Pennyworth. MINISTER IS EXONERATED Charges of Gross Misconduct Prove to Be Groundless. ASHEVILLE. N. C, Oct. 28. Rev. Livingston T. Mays, corresponding- secretary of the Southern Baptist as sembly. Is exonerated of charges of immorality and sedition by the com mittee representing the Southern Bap tist assembly, in its report made pub l'c here. Mays, accused by counsel for J. T. Harris, who was executed at Raleigh, October 20. for the murder of F. W. Monnish, of gross misconduct at El dorado, Ark., and other cities, is vin dicated by the committee, which de clared that the attacks were insti gated by a malicious spirit. COMMANDER IS ASSIGNED General Martin to Take Charge of Maryland Training Center. THE OREGONIAN NEWS BUREAU, Washington, D. C, Oct. 28. Brigadier-General Charles H. Martin has been assigned to command the 3d corps area training center at Camp Meade, Maryland. He was formerly commander of the Oregon national, guard. STONE WALL IS AS HARD AS Nestos, With Tabulation Half Done, Has Lead of 25,000 Votes Over Governor Frazier. FARGO, N. D-. Oct. 2S. More than half of the estimated vote cast in the gubernatorial contest in yesterday's recall election had been tabulated up to 2 A. M. today, almost entirely from Independent territory, and showed K. A Nestoa, independent candidate, leading Governor Lynn J- Frazier, non-partisan, by 25,000 votes. When 731 of the state's 2094 pre cincts had reported, the count stood: Nestos, 63,804; Frazier, 38,990. The returns Included the Incom plete vote of some of the large east ern cities and of Mlnot In the north west. The non-partisan league leaders maintained that later returns from the strictly rural sections where they predominate would swing the final vote decisively to their favor. The candidates for attorney-general and commissioner of agriculture and labor were running about on the same basis as the gubernatorial candidates and it was apparent the final vote i their cases would approximate that of the heads of the ticket. Returns on the constitutional amendments and initiated laws had not been compiled at midnight. It was pointed out in independent and non-partisan league circles alike that the Missouri slope vote undoubt edly would decide, the election as It has In former years. ' Recognizing that section as non-partisan, the question was whether the league ma jority In that region could overcome the independent lead piled up in the eastern part of the state. Nestos' home town, Minot, its vote unofficially completed, showed a net loss for the independents from a year ago. The count was: Nestos, 2635; Frazier, 1050. Last year J. F. T. O'Connor, Independent candidate, polled 2753 and Frazier 1088. This was the first recall election against state officials ever attempted in the United States, the Independent Voters' association faction seeking to have its candidates oust three offi cials who were elected last fall with indorsement of the non-partisan league. Governor Frazier, William Lemke, attorney-general, and J. N. Hagan, commissioner of agriculture and la bor, are the officials the Independents are attempting to replace with R. A. Nestos of Minot, Svelnbjorn Johnson of Grand Forks and Joseph A. Kitchen of Sentinel Butte, respectively. 1 A group of proposed laws also was submitted to the voters today as ini tiated measures, one of which would In the future do away with party des ignations in the election of state offi cials. -Others would change the mem bership of the industrial commission, which supervises state-owned Indus-, tries so that the Control of the com mission would pass out of the hands of the non-partisan league regardless of the outcome of future elections; provide means to liquidate the Bank of North Dakota, a state institution, and provide for a rural credits act patterned after the South Dakota law. Diaz Goes to Legion Convention. WASHINGTON. D. C. Oct. 28. Gen eral Diaz of Italy left here late today for Kansas City to "attend the Amer ican Legion convention. He will go by way of Chicago and arrive at Kan sas City Sunday morning. EVER. i Flat 15 Per Cent Tax Is Voted on Corporations. NEW FIGHT IS PROMISED Proponents of Scale Assess ment Still Busy. CONFIDENCE YET HELD Fight Over Estate Tax Section Brings Night Session and Ends In Compromise. WASHINGTON, D. C, Oct. 28. Af ter rejecting two proposals for a graduated income tax on corporations each by a margin of a single vote the senate adopted today, 36 to 26, the finance committee amendment to the tax revision bill, providing for a flat 15 per cent tax. Proponents of a graduated levy, or of some other plan that would pre vent the proposed Increase of 60 per cent ln the tax of thousands of cor porations making small profits, gave notice that they would renew their fight later. They expressed confi dence tonight that they would win. Support Declared Pledged. Senator Walsh, democrat, Massa chusetts, author of the two amend ments voted down today, 38 to 32, said he had been assured by Senators Johnson, republican, California, and Myers, democrat, Montana, who were absent at the rollcalls today, that they would support his amendment when next presented. Senator Walsh also expects to win over some repub licans who voted against him today. The first proposal of the Massa chusetts senator was for a tax of 10 per cent on the first 8100.000 of In come, It per cent en the next $200, 000 and 20 per cent on all more than (300,000, with an added provision that corporations which did not pay an ex cess profits tax for the calendar year 1920 should pay only at the rate of 10 per cent. Night Session Is Held. After this had been rejected, Sen ator Walsh offered it again with a provision that in addition to those not paying an excess profits tax In 1920, corporations whose net Incomes did not exceed 8 per cent on the Invested capital should pay only at the 10 per cent rate. The fight over the estate tax sec tion followed. It led the senate into a night session and resulted in the adoption, 44 to 15, of the compromise agreement to increase the present maximum rate of 26 per cent on all that part of an estate over 815,000,000 to 15 per cent on all over 3100,000,000. Senator Walsh then proposed that there be a tax of lfi per cent on the transfer of tax free securities in an estate, with an exemption of 350,000 of such securities. The amendment led to another long fight, but was re jected without a record vote. Passage Today Predicted. Republican leaders sent word to President Harding during the day that the tax bill would be passed by to morrow nljht, but many senators on both the majority and minority side declared this hope could not be real ized. The Wadsworth amendment pro viding for a tax of 60 cents a gallon on beer, 81-20 a gallon on, wines, and ID.4U a gauon on wnisicy, manufac tured, imported or sold for medicinal purposes, was adopted without a rec ord vote after it had been amended so as to provide for double rates on such liquors unlawfully diverted for bev erage purposes, the tax to be paid by the person responsible for theediver- sion. , . The senate next tool up the capi tal stock tax section but Senator Reed announced that he had "a very spe cial" amendment to offer and sug gested that since it was late the sen ate might well recess until tomorrow. "There Isn't a possibility of passing this bill thiB week." Senator Reed said, but Senator Lodge insisted that the night session go on. After some debate, however, the senate recessed until 11 A. M. tomorrow. OREGON MAN APPOINTED Relative of Senator Stanfield Farm Loan Bank Secretary. THE OREGONIAN NEWS BUREAU, Washington, D. C, Oct. 28. Asa B. Thompson of Echo, Or., today was ap pointed secretary of the 12th district federal farm loan bank at Spokane and will take office November 1. At the same time the resignation of Tur ner Oliver, as registrar of the bank, was accepted and L. J. Birdseye of Spokane was named to succeed Mr. Oliver, effective November 15. Mr. Thompson's appointment came after a conference this afternoon of Senators McNary and Stanfield with Charles E. Lobdell, executive officer of the federal farm loan board. There was one other active aspirant for the secretaryship, Curtis E. Widdoes, also of Oregon, and the present acting sec retary of the Spokane bank. : .Mr. Thompson is a brother-in-law of Sejiatox Staaileid. Entire Police Department Roused and Bridges Guarded, but No One Is Captured. Four holdups In quick succession, following the theft of an automobile, last night, put the entire police de partment on Its ear. but the three robbers were not apprehended. Between 8 and 10:30 o'clock some one stole an automobile belonging to C. F. Meyers, 932 East Twentieth street North, from Its parking place at East Sixth and Washington streets. At 9:55 Mr. and Mrs. Elmer Conn, 1106 Belmont street, were held up at East Thirty-fifth North and East Stark streets by three men in an au tomobile. One man stayed at the wheel while the others performed the robbery. Conn lost 33 Mrs. Conn 325 and a brother of Mrs. Conn 345. While Captain Inskeep was rushing men to guard bridges ln an effort to stop the car, C. H. Spencer, 778 Irv ing street, reported being' held up at 10:20 at North Nineteenth and Hoyt streets. He lost I", and said that he was held up by three men, two of whom alighted from an automobile to accost him. The next victim was George Stelg er, 777 Jefferson street, who was ac costed by the same trio at North Nineteenth street and Canyon road. He lost nothing. Robert Selby, 650 Market Btreet, and Herbert Oldstadt, 324 North Nine teenth street, had just parted from two girls in front of 512 Market street when they were approached and robbed by the three men, who took Selby's overcoat and 25 cents from Oldstadt. One of the girls saw the robbers drive off, and she said they were going about 40 miles an hour when they departed her line of vision. Roads leading from the city and all bridges were policed, and Captain Ins keep was confident that the robbers were "bottled up" on the west side; the cork must have popped out, how ever, for after the Selby-Oldstadt holdup nothing was heard of them. PORTLAND CHIEF HONORED Head of Police Department Officer of National Body. OAKLAND, Cal Oct. 28. Captain John W. O'Connor, captain of traffic of New Tork city, was unanimously elected president of the International Traffic Officers' association at the final session of the organization's fourth annual convention here today. Among other officers elected were L. -ft. Geddes, Toronto, Canada, first vice-president, and L. V. Jenkins, chief of police of Portland, Or., scr-geant-at-arms. 5614 SEEK CASH BONUS 4601 ex-Service Men Have Filed Applications for Loans. SALEM. Or., Oct. 28. (Special.) A total of 10.305 ex-service men en titled to benefits under the so-called bonus law had filed applications with the world war veterans' state aid commission tonight. Of the aggregate applications 6614 seek cash bonuses and 4691 loans. The commission will meet here Mon day, when a large number of the ap plications will receive consideration. INDEX OF TODAY'S NEWS The Weather. YESTERDATS Maximum temperature, 68 degrees; minimum, 54 decrees. TODAY'S Fair. Foreign. Penitent reports vision of Christ. Page 5. National. Senate rejects graduated Income tax on corporations. Page 1. Representative Blanton apologizes to house. Page 2. Armament session to open November 12. Page 2. New Issue is raised on medicinal beer. Pace 0. Domestic. New Tork Is captured by Marshal Foch. Page 1. Marsha! Foch while in America will observe prohibition law. Page 1. Miner Is sought for murder of priest. Page 8. Logging congress asks for extension of fire patrol. Page 5. Railways to press new wage cut petitions at once. Page 1. New Tork hat salesmen give buyers thrill. Page 4. Country bankers ln middle west somewhat gloomy, says Richard Spiltane. Page 20. Savings of Idle nearly exhausted and suffering predicted. Page 15. Evelyn Nesbit tries to commit suicide. Page Outcome of recall election in North Dakota not yet Indicated. Page 1. Psclfle Northwest. v Governor Olcott, denying Intent to resign, is expected to seek office again. Page 8. Auto Jumps bank; two kilted, one injured. Page S. Wynooche river out of banks; Olympic highway flooded. Page 1. i Sports. Cougars and Bears alert for whistle. Page 14. Ferocious Cougars rarln' to go. Page 14. Multnomah boxers lose three of four events. Page 15. Commercial and Marine. Healthy demand for wool ln local market. Page 21. Calling oft of strike lifts wheat at Chicago. Page 21. Ratla and other Investment stocks strong at New York. Page 21. Ships run to shelter from hurricane off Pacific coast. Page 20. Portland and Vicinity. Wife-slayer aane, prosecution says. Page Leading wool buyer foresees rosy era. Page 21. Fall vegetables plentiful. Page 12. Effort to be made to Interest Japanese visitors in coming exposition. Page 12. Legality of Jewelry auction at issue In city council. Page 18. Hardest workers declared thrifty. Pag 21. Rail-pay check forger gets 13000 In Port land. Page T. Bond ring distributing queer securities in city sought. Page 1. Loop road fund pledge taken under advise ment by tax commission. Pag 0. Railway strike officially called off ln faclfio northwest. Page 4, i SECURITIES QUEER More Than $65,000 Are Fake or Stolen in City. ISSUE THIRD LIBERTY LOAN White Men of Standing Are Believed Responsible. NEGROES ARE VENDORS Net of Evidence Being Woven Ex pected to Lead to Arrest of Gang of Persons. More than 365,000 worth of stolen or counterfeit liberty bonds have been sold ln Portland during the last few weeks, and government officers are weaving a net of evidence which will probably bring under arrest shortly a ring of men responsible for the distribution of the bonds. Behind a number of rnegro vendors of the bonds are several white men of considerable standing In the city, according to the theory of federal of ficers. Both the white suspects and their-negro agents have been ques tioned by the officers, but not suffi cient evidence has so far been gath ered as to warrant their arrest. Bonds of Third Iasne. The bonds are of the third liberty loan Issue and are In denominations of 350 and 3100. Those that have been recovered show that the Interest has not been drawn on the bonds for a period of 18 months. This fact dis puted a theory that was held for some time that they might have been stolen by Roy Gardner, the notorious prison breaker, when he robbed a mail truck ln Sacramento. Serial numbers on the bonds also did hot correspond with the numbers of those taken by Gardner. A check of the numbers on the bonds stolen In Los Angeles in a rob bery more than six months ago also indicated that the bonds being dis tributed here were not of the same issue Counterfeiting; Is Suspected. ' Yesterday afternoon postofflce au- thorltl.'s were informed by telegraph that the Federal Reserve bank of San Francisco, after conducting an exhaustive search, had been unable to find any record of the theft of the liberty bonds of the same serial num bers as those ln Portland. This led some to believe that there was a possibility that counterfeiters were at work printing fake bonds so like the originals that it would be Im possible for even a banker to estab lish a difference. Federal authorities became aware that stolen bonds were being dis tributed through the city when they were informed through confidential sources that 350 bonds of the third liberty loan issue had been sold here for 312 and that 100 bonds had been sold for 320. White Men Involved. Their investigation Pad them to the offices of several professional men of the city and to the district below the customs-house where resides the negro population. How the bonds came into Portland has not been established. This much, however, the officers say they havo learned. The bonds were first in the offices of the two or three white men ln question. The negro agents set about to sell the bonds, not only to men and women of their race but to others as well. One agent approached a business man who invests his money In bonds. He was offered several thou sand dollars' worth of bonds. When he asked the prices that were de sired he was informed that "the price of 508 Is 312 and that of 100s Is 120." He asked if the agent did not mean discount rather than sale price and was Informed that those were the fig ures at which the bonds were being sold. The business man immediately notified the federal authorities and an investigation was started. Bond Sold to Bonk. A short time later a negro who had purchased one of the 350 bonds for 3L2 sold it to a local bank at mar ket value. He was Identified later by one of the bank clerks and Informed the officers the source from whence the bond came. Authorities think that if the bonds are not counterfeits they came from the east, where a number of liberty bond thefts running into millions of dollars have been made during the last two years. In the robbery of the mall truck in Toledo, O., February 17 of this year, when 15,000,000 worth of bonds were stolen, there were few bonds of the third liberty loan issue ln denomina tions of 350 and 3100. Thousands of Bonds Stolen. In a robbery In Cincinnati a few weeks later, under practically iden tical circumstances as in Toledo, many of the bonds were of the third liberty loan issue, but were In much larger denominations than those dis tributed here. Thousands of dollars' worth of bonds were stolen in the train rob bery at Council Bluffs, la., Novem ber 13, 1820, but they were also In large denominations and of the first and fourth issues The same Is true iOoauludea oa fas 2, Column 2.)