TOE 3I0RXING OREGOXIAN, SATURDAY, FEBRTJAHT 4, 1923
FREIGHT RATE CUT '
HELD IMPOSSIBLE
Roads Are Impoverished,
Hoover Testifies.
CONSTRUCTION IS ADVISED
I'ntil Readjustment Is Made, Eco
nomic Machine Vill Mots
Slowly, Secretary Asserts.
WASHINGTON. D. C.. Feb. S. Gen
era! freight rate reductions are Impos
sible at this time because of the im
poverished state of the railroad sys
tems of the country. Secretary of
Commerce Hoover testified today be
fore the interstate commerce com
mission invest igatioa of transporta
tion rate levels.
Uctii rates come down and railroad
expenditures for new construction and
betterments climb up, Mr. Hoover
declared, "the economic machine will
move slowly. He added, however.
that in his opinion railway operating
costs. In which connection he men
tioned ware scales, must come down
and railroad credit must be bettered
before rales can be safely reduced.
Spread" Held te Blame.
Most of the existing; economic de
pression la due to the "spread" be
tween the prices received by pro
ducers of raw materials and the prices
paid out by consumers for finished
roods. Mr. Hoover declared.. Railroad
rates, like wages, on their present
basis, increase this cap. he asserted
frivinir the increased "spread" as the
explanation of the lost purchasing;
power of the farm population,
Expressing his belief that an oppor
tunity to cut rates would be had in
about a year. Mr. Hoover, who was
called as a witness by the United
btates chamber of commerce, said It
would be an "economic crime" if rate
schedules were not revised to give
basic raw materials much cheaper
transportation as compared with fin
ished and high-grade materials.
Thorae's Views Different.
Mr. Hoover's views of railroad credit
brought him into sharp conflict with
Clifford Thome, counsel for shippers
and farm organizations, who demand
ed cm cross-examination whether rail
road users should be obliged to pay
rates baaed "on stock securities Is
sued as bonuses with bonds created
for promoters" profits" and generally
representing; no Investment.
I've heard that talk all my life."
rejoined the secretary, - "but the com
mission Is dealing with the future,
not the past. Its rates are based on
Its tentative valuations of existing
railroad property, not on the mass of
paper In the markets which sells
for a dollar one day and a hundred
the next."
Kvldeaee la Submitted.
Ftate railroad commissions submit
ted their evidence today upon an at
tempt to get railroad fares reduced.
Clyde M. Heed, chairman of the Kan
sas utilities commission, opened the
discussion with an argument that the
present rate of It cents per mile
was economically unjustified and had
operated to reduce the incomes of
railroads by restricting travel. Fred
W. Putnam of the Minnesota commis
sion and J. F. Shaughnessy, chairman
of the Nevada commission, presented
similar views.
The Pullman company also appealed
to the commission to reduce the sur-
wlth their property now as they bad
ten years ago.
"No, but the ratio of bond Issues is
too high for flexibility and financial
strength." Mr. Hoover returned. "We
would be better off if the bond issues
representing debts of the railroads
did not exceed 3a per cent of the total
capitalisation of the properties."
Km tar Aetloa Held lane.
"'Do you know how these stock is
sues originated, how the stocks were
given away as bonus with bond sales
and what lack of value they really
represented" Mr. Thorns demanded.
"I've listened to that all my life," Mr.
Hoover retorted. "But ws are here
now to consider what we are going
to do in the future, not what bas
been done in the past, and when you
talk of railroad values, there Is noth
ing to consider but the tentative es
timates that the commission has made
upon the actual property.
"Do you want the shippers and
consumers to pay out the stock value
by boosting up the rates V Mr. Thorns
asked
"It's not the mass of paper that
sells on the market all the way from
a dollar up that we consider here,
Mr. Hoover replied. "My vision 1
entirely that of the tentative value,
representing the real value, as found
by the commission, but I understand
that valuation of the railroads of the
United States is greater than the
whole amount of paper issued against
it."
Mr. Hoover Is Challenged.
Mr. Thorne challenged Mr. Hoov
er's representations of the difficulty
railroads have encountered In secur
ing new capital and the secretary re
plied that "we have a good test of
that right here in Washington, where
the director-general of railroads ha
a large parcel of railroad securities
he'd like to sell and hasn't been able
to peddle in the last six months, more
than enough to get back a sum sum
cient to meet the railroad equipment
needs in this country for a month."
Mr. Thorne likewise questioned Mr.
Hoover's .suggestion that less than
carload rates be increased if necessary
in order that the rates on primary
commodities might be lowered, but
the secretary Insisted this method
would rebound particularly to the
benefit of the agricultural commu
nity.
Transportation earnings, now
"perilously close to bond interest,"
Mr. Hoover said, make It impossible
for the commission to give "immedi
ate Important rate relief," but he de
clared that Improving conditions
would allow downward revision dur
ing the present year.
When such revisions were made, he
said, the commission should apply
them first to the primary basic com
modities agricultural products, coal,
metals and timbers even if passen
cer rates, class rates and less than
carload shipments had to be charged
more to protect railroad revenues.
This course should be adopted,, he
argued, because the series of hori-
xontal percentcge increases by which
the rates were advanced had dis
torted the existing fabric of com
merce in the United States, and "was
moving Industry as a whole toward
its sources of raw materials."
Incidentally, rail wages should not
be expected to .go back to pre-war
levels, he said, but should "follow
downward, step by step, the cost of
living, snd the rates decreases chould sr
be so applied as to maintain railroad
revenues, and restore the confidence
of investors In ultimate railroad
earning power.
x, lur HIM II isr
We talk glibly of giving billions
of credits to foreign countries, to in
crease our farm exports," Mr. Hoover
said. "I wish to say witn ail re
sponsibility for the statement that a I
billion dollars spent upon American i E.
railways will give more employment
to our people, more sdvance to our
ndustry, more assistance to our
farmers, than twice that sum ex
pended outside the frontiers of the
United States and there will be
greater security for investors."
There is danger that In the present
period of low earnings and little
traffics, the needs of the railroads In
new construction, equipment, better-
IS ADDED
TO STATE PRISON
Convicts to Begin Wooden
ware Manufacture.
DEPENDENTS TO GET CASH
Warden Compton Takes First Step
to Place Penitentiary on Self
Sustaining Basis.
SALEM, Or., Feb. 3. (Special.)
Establishment of a woodenware plant
within the walls of the Oregon state
penitentiary as the tirst step in an
effort to put the institution on a
self-sustaining basis was announced
here tonight by U ft Compton, war
den of the prison.
The first unit of the industrial de
velopment of the penitentiary will
represent an expenditure of approx
imately 17000. This will leave 123.000
of an appropriation of $30 000 author
ised at the 1S21 session of the legis
lature for additions to the plant and
other kindred industries.
A. W. McMillen, for many years a
practical sawmill operator and wood
worker, who until recently was em
ployed at the Washington state re
formatory at Monroe, will nave cArge
of the new plant. The machinery for
the industry already has been par
chased and it was said tonight that
every effort will be made to get the
piant in operation within the next
few weeks. Buildings now are avail
able on the prison grounds to fill the
immediate wants.
Work for Convicts Aim.
"I have been Investigating the
question of employment of prisoners
and industries at the prison ever'since
the appropriation was authorized,"
Warden Compton said tonight. "It is
my purpose to not only make the
penitentiary self-sustaining, but to
provide suitable labor for as many
men as possible. At the same time I
desire to give the convicts some op
portunity, to earn money in order that
they may assist their dependents out
side the prison walls.
Ttie first equipment will be utilized
to manufartura mnn Ha nrllp. u-nnilon
litRnnila. rhalra chnnn tahlaa and '
other articles. These will be sold as
largely as possible to state institu
tions and departments. The original
nvestment will give employment to
approximately 0 men.
Public Bnrden to Be lighter.
'With such a plan in operation the
public will be spared the burden of
keeping many of these dependents
who are now wards of charity, will
assist the men in maintaining or re
gaining their self-respect, and will
also relieve many suffering families
who are too proud to divulge their
condition to friends.
"The men. under the law, also will
be entitled to a small share of wages
to be saved for them for rehabilita
tion as citizens after they leave the
prison.
"It is our aim to develop, the prison
industries in the same manner as any
successful private business Is estab
lihed. . This will be brought about
by careful and conservative manage
ment. "We have In mind the installation
from time to time of additional In
dustries. They will be placed on a
similar basis to be developed grad
ually and along sensible, sound v and
conservative lines."
There now are approximately 425
men in the prison.
GIFT GRAIN TO BE GROUND
RATES ON LOSS REDUCED
WASHINGTON CUTS CHARGES
17 U PER CENT.
Thousands of Bushels for Near East
to Be Turned Into Flour.
TACOMA,-Wash, Feb. S. (Special.)
Thousands bf bushels of wheat
given by farmers of Washington,
Idaho and Montana to Armenia and
neighboring countries, will be ground
into flour at the Tacoma plant of the
Sperry Flour Mills company during
the next few days, for the near east
relief committee.
The finished, product is to form an
emergency cargo of food, together
with cast-off clothes from all over
the northwest, which, on February 16,
is to be loaded aboard the Ural-ted
American line steamer Ohioan, for
direct shipment to Batoum, where
thousands of lives, chiefly those of
helpless women and 'unsheltered or
phan children, depend upon its early
arrival.
J. M. Weatherwax School Wins.
ABERDEEN, Wash., Feb. 3. (Spe
cial.) The J. M. Weatherwax high
school won the January attendance
contest of the Aberdeen schools, with
an average of 97.94 per cent. It was
the first time In several months that
the high school won the contest.
Total enrollment of the Aberdeen
schools for the first semester was
8931 pupils, of which 1471 were boys
and 1460 girls. The average daily at
tendance during the month for the
whole school system was 2618 or
97.19 per cent. The Neushkah rural
school, which Is also included in the
district, had an average of 99.01.
Morton Mirror Changes Hands.
' MORTON. Wash.. Feb. S. (Special.)
The Morton Mirror changed pub
lishers this week, the incoming pub
lisher being R. L. Knapp, formerly
of Portland. Immediately and for five
years prior to coming to Morton, Mr.
Knapp was a linotype operator on the
Oregon Journal of Portland. V. H.
Honeywell, the retiring publisher, will
leave Morton.
Companies Expected to Make Al
most as Much Under Ruling Be
cause of Pay Redactions,
OL.YMPIA, Wash- Feb. 3. Reduc
tion of approximately 1714 per cent in
railroad rates on logs is accomplished
by an order issued today by : the de
partment of public works to apply on
all state traffic, wnich means, it Is
said, the saving of half a million
dollars annually to log shippers,
based on operations of 1920.
The department requested the car
riers to make a proper revision of
the rates in August. 1920, and upon
their failure to do so, filed a com
plaint against the four principal rail
roads a little more than a year ago.
Various hearings were held, the last
one being in November, 1921, when
the railroads agreed to file tariffs
which they believe would be Just.
The tariffs were filed and immedi
ately suspended by the department, It
being charged that they were higher
than the old rates. '
Under the new rule promulgated
today, if any one shipment averages
7000 or more feet a car, the freight
is computed on the basis of aptual
loading. Formerly the shipper was
required to pay on the basis of the
minimum load of 7000 feet for every
car containing less than that amount
The department also recommends
that carriers equip a reasonable num
ber of cars with steel log bunks and
directs that the charges for cars not
so equipped shall be 60-cents less.
"Even with the .reduction, the car
riers should receive a net revenue
from log transportation approxi
mately equal to that received in the
past, ia view of reduction in railway
employes' wages, and in other oper
ating expenses," said E. U. Kuyken
dall, director of public works.
CAR LUMBER PURCHASED
Union Pacific Places Big Orders
With Mills of Tacoma.
. TACOMA. Wash.. Feb. 3. (Special.)
Tacoma lumber mills are getting
a part of the orders for lumber for
constructing the 45.000 cars being
built for the Union Pacific- system,
and northwest mills are being called
on for practically all the millions, of
feet needed, said A. S. Edmonds, as
sistant traffic manager of the Union
Pacific at Portland, who, with R. R.
Mitchell, assistant traffic manager at
Omaha, were visitors in Tacoma yes
terday.
"Orders for the lumber for the cars
are now being placed to go east to
Chicago, Mount Vernon and other
car-building points," said Mr. Ed
monds. "Tacoma is to share In the
business and we think It should help.
The Pacific Fruit .Express company,
one-half owned by the Union Pacific,
also is to build 35.000 cars this year
and will require more lumber later.
"We have found on our trip that
freight ia moving better in the east
and west, but things still are elow in
the middle west, through the corn
belt."
. t
PARENTS, CHILDREN DrE
Wreck of Yacht Fatal to August
Frojendahl and Family. .
SEATTLE, Wash., Feb. 3. August
Anderson "Frojendahl, ex-Alaskan
capitalist and resident of Seattle, his
wife and four children were drowned i
when their private yacht, in which
they were cruising the bouth seas,
was wrecked two months ago, accord
ing to advices received by Andrew
Chilberg, Swedish vice-consul here
today.
The message received by Mr. Chil
berg gave no details and did not
mention the name of the yacht.
Mr. Frojendahl made his fortune in
the Klondike shortly after he arrived
there in the rush of 1898. Before go
ing to Alaska he lived here several
years. The family also lived for a
while In Douglas, Alaska. Mr. Fro
jendahl later returned to his former
home in Sweden, but was connected
with trading ventures on the Pacific I
coast for several years.
MRS. GARDNER IS BARRED
Yakima Refuses to fcet Wife of
Mail Robber Talk.
YAKIMA, Wash.. Feb. 3. (Special.)
Mrs. Roy Gardner, the mail robber's
wife billed to appear here Sunday in
vaudeville with a talk about her hus
band and films depicting his exploits,
today was placed under a ban by
Mayor Rovig in the interest of publio
morals. The prohibition was asked
by a delegation from ministers and
churchmen, the Y. M. C. A., Y. W. C.
A. and Chelminar Grotto, Nobles of
the Mystic Shrine, In a series of reso
lutions. s
H. A. Gillespie, assistant manager
of the Yakima Amusement company
which brings the vaudeville here, said
the company would not fight the city,
and would comply with the mayor's
order, but voiced a protest.
Warning Given Signers.
ABERDEEN. Wash., Feb. 3. (Spe
cial.) Those who sign Initiative and
referendum measures indiscriminately
are subject to arrest and prosecution,
according to Prosecuting Attorney
'Acret, who has received a message
from Secretary of State Hinkle. The
law on this point provides that the
signer must not only be a registered
voter, but must affix precinct num
ber and addresses exactly as de
scribed. Last year 608 careless sign
ers were obliged to explain why they
had signed petitions illegally. Two
were prosecuted and convicted for
violating initiative and referendum
law clauses. Mr. Acret said.
Debonaire Early Spring
atin Hats
in a great two-day selling event!
$398
Regularly $5, $6.50 and $7.50
It is not very often that one may purchase,
for such a tiny sum as $3.98, such smart early
spring hats
Of. shining satins with gay touches of
spring-like flowers, fruit or jaunty quills
they will quite transform your appearance.
BROWNS NAVY HENNA BLACK
For the Home Milliner
We are ready now with the largest assortments
of buckram frames and straw braids, flowers and
ornaments in the city
We sell our braid by the yard or piece
we cut our silks on the bias
Special salespeople will aid you in your selec
I - mm mi i m us sn in mil mm i i n i i inn i i n 1 1 1
..h.iiiii.i.., mwT., in turn iii.ii. ii ii u .m aw i ' '.jMm. uinum-i, m ini.i..iju.'nn.t- ; r .v-fc5f'3 J J. j
! .-5 if V A
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l '- - - -Wa. A S. 'V -. 1
I. .( " 4
124-128 SIXTH ST.
charge on travel in Its cara. eatlmat-
lng the dr..p In Its revenues from I menta and maintenance, will be neg-
those of 1920 at 11.000,000 per month.
Irlers aad Uiifi Compared.
Comparing price and wage statis
tics of 1S11 with those of today. Mr.
Hoover said there was demonstration
of great Inequality in their degree of
Increase, a great Increase in spread
between producer and consumer." and
a "lag in wage scales." which do not
follow commodity prices down with
regularity. The general result, he
said, had reduced the buying power
of half the population that engaged
in raw-maceriai proauctlon "to less
than TO per cent of pre-war and is
the consequent cause of a large part
of the Industrial and commercial un
employment ana stagnation in our
cities and our transportation."
Unless we. can secure their nearer
proximity." Mr. Hoover said, referring
to the "spread" between consumer's
prices and producers' prices, "we will
retard a return of employment and
prosperity. Jtaising agricultural price
levels by government subsidiary, of
otherwise." he added, would not cure
the difficulty, since tne real evil lay
In the "spread" where transportation
costs, distributors, profits, taxes and
many other charges accumulated,
which ought to be attacked.
Reaejnataaemt Held XeedeaL
"It ia a certainty that In order to
decrease the spread," he said, "rail
way rates must come down, and for
rates to come down, costs of railway
operation in wages and costs of sup
ply must be reduced. I'ntil this ad
justment is secured the economical
machine will continue to move slowly.
... there are permanent charges in
this spread, such as taxes, which will
hold the cost of living above pre-war
levels."
Increases In rail rates since 1914. he
estimated, "have added probably less
than 1 per cent to the price of cotton
goods oa the average haul, but has
added probably CO per cent to the
price of coal, while the Increased
rates since 114 have added nearly 100
per cent to the cost of assembling ma
terials for pis Iron. Some increases
In rates had come out rf the pro- I
cucer. as In the case of farm commo
dities sold at world wholesale prices
while ethers were pa!d by the con
sumer, as oa manufactured articles,
lavesllsatloa Is t arraated.
"Even If the commission at th
present moment cannot justifiably
reduce railway Incomes a single dol
lar." he said, "it Is warranted In In
vestigating the possibility of some
relief for the more distressed com
modities by a revision of some rates
upward ... It would be an eco
nomical crime to apply relief to horl
sontal reductions in all rates, thus
givicr relief to higher-priced goods,
and travel, when the vital mainspring
ef our economical life, our agricul
tural, fuel and metals are chocked.
'I recCaTixe that the uncertainly
and slow reduction of rates In this
fashion will Itself delay business re
covery because of the uncertainty of
business as to Its future costs. If our
railways were in a position to stand
the temporary shock. 11 would be in
tinitely better to drop the rates on
primary commodities tomorrow. But
we can not ask the impossible."
Ferela-w Railroads Warn Off.
Notwithstanding preaen difficul
ties. Mr. Hoover said. American rail
ways are in better condition than
carriers of other countries, are better
run than the publicly owned lines
elsewhere.
t'itfford Thome, for shippers and
agricultural organisations took up
Mr. Hoover's statement on cross-ex-1
amination asking him first if lie I
thought railroads had a great pro- I
portion of bond issues as compared I
lected. Mr. Hoover added, with re
sulting breakdown of transportation
when a full load Is put upon them
by Industrial resumption. This
should be averted, even by the exten
sion of government indorsement of
railroad securities, whose sale would
give bonds for expenditure on equip
ment. ' The commission's efforts
should be devoted, he said, to a policy
of "maintaining public control of
monopoly, and at the same time
maintaining private Initiative."
CLAM PACKING TO BEGIN
1500 Men and Women to Be Em
ployed on Beach and In Plants.
ABERDEEN, Wash, Feb. S. (Spe
cial.) (jrays Harbor clam canneries
will begin packing during the first
w-ec-k In March, with approximately
1SU0 men and women employed oa the
beach and in the packing plants. All
the beaches from Moplips to West port
will be worked by diggers from March
1. the beginning of the season, to
May 31. its close. No price agree-1
ment has been completed yet be
tween the diggers and packers.
In addition to the established pack
ing companies, two new outfits will
be in the field this year. They are
the strand r lsneries and the Ueep
Sea Food Packing company.
Logging Campa to Open.
CEXTRALIA. Wash.. Feb. S. (Espe
cial.) The Western Lumber company
is preparing to open a logging camp
alongside the Northern Pacific rail
way two miles from Pe Ell. Construc
tion of the necessary buildings for
the camp will be started at once. The
Yeomans Lumber company of Pe Kll
is taking up Its old logging road
along Stone creek preparatory to ex
tending its system up the Chehalls
river to tap more distant timber
holdings.
No soltd fuel equals dlefsen's coal
In heat, lastinp. price Adv.
INTENSE ITCHING
burning
On Neck, Chest, Arms and Shoul
ders. In Blisters. Cuticura Heals.
"Eczema broke out In small, red
spots around my neck and quickly
Dread to my cheat, arms and across
my shoulders. The itch ins; and
burning wia intense, and when I
scratched or rubbed k, small, white
blisters formed.
"I waa treated but got no relief, r
sent for a free sample of Cuticura
Soap and Ointment. Seeing they
were helping me I purchased more,
and now I am completely healed."
(Signed) Mrs. John Tim brooks, Rt.
3, Romeo, Michigan.
Cuticura Soap dally, with Cuticura
Ointment occasionally .prevents pim
ples or other eruptions. They are a
pleasure to use aa la also Cuticnra
Talcum, a fascinating; fragrance for
perfuming the skin.
etaak'Sa.krNatTafon. Uaar-OHMaUk-
w-r SoapSW. OiuaailSaaSt. - -
TODAY
In "The Lane That
Had No Turning"
beautiful star of "The
Sheik" in her first big fea
tured vehicle.
from a story by Sir Gil
bert Parker.
co-starring THEODORE
KOSLOFF of "Forbidden
Fruit," "The Woman God
Forgot," etc., in one of the
finest character parts ever
screened. .
the story of the career of
a beautiful opera star and
a private life that the public
did not know.
CECIL TEAGUE
In an Unusual Wurlitzer Inter
pretation and in Concert
Tomorrow at 1 :30 P. M.
PROGRAMME
"WHUnm Tell" Overture Romlnl
"llecaute," from Jocelyn. . .. . .Oodard -
Three songs:
IMn't Leave Me Mammy. . . .Stanley
When Shall We Meet Again T
Whiting
Too Hoo Al Jolson
111 Trovature Verdi
Pathe Weekly and Comedy
re-
jj irecti on or Jensen and Von Herbert?
f!!BBSSlatesf If you
jaPlftol light hom
iR3HK5lles (andtlie-!
MM& to2$Ni le your fait
1H0EK&' the
mmmmmw "
I : hmarflilHHWHEe iir A Tan Tar Ch
WSmMfTlNrimf3n!f - of indescrib
WSBSSVJ They're at
Have yon bought your Sunday candyf
Sweetmeat Perfection
could visit the great day-
: VoGAN chocolates
string is always out)
i the purity behind
avor would be Dounaiess.
ocolates are
e goodness.
your dealer's.
somebody's birthday?
Vogan Candy Co.
Portland, Oregon
KIRK'S MILITARY SHOP
61 Sixth SU, Corner Pine, Portland, Oregon
OUR LINE OF LEATHER PUTTEES IS MOST COMPLETE
AND EXCELLENT VALUES, selling at $1.00, $4.50,
$5.00, $5.50, $6.00 and $6.50. All new.
Spiral Leggins, brand new, selling at.. ....$1.00
EXCELLENT WORK BREECHES, new with double seat and
laced legs, selling at only .' $3.00
Gabardine Breeches . .$3.50 Bedford Cord Breeches $3.75
Corduroy Breeches ...$4.00 Heavy Canvas Breech's $3.25
Heavy Wool Breeches $4.50 Khaki Breeches $2.75
OTHER BREECHES khaki $2.00, moleskin at. a... $3.50
Kenwood Motor Robes, all wool.. $10.00, $12.50
PLUSH AUTO ROBES, priced at $3.50, $4.75
OLIVE DRAB AND FOREST GREEN SUITING CLOTH IN
THE BOLT, 58 inches wide, reduced to, yard $4.00
Khaki Work Shirts $1.15 Khaki Trousers 95
SWEET ORR Blue Shirts, 2 collars, now $1.50
Wrist Bands 200-500 Leather Hat Straps 100
SECURAKETS ...250,300 Tool Kits, metal 250
HIP RUBBER BOOTS, U. S. Rubber Co, at $3.35
Blankets. Sweaters, Flannel Shirts, Raincoats, Socks, Wool
rrousers. Wool Middles, Packsacks, Arctic, Etc. All' Goods Are
Open for Yovr Inspection.
, Always Your J
Money's Worth j
Cash or
Cash or
Easy Terms-
' Victor Record
The SHEIK
FOX TROT
WITH DAPPER DAN
CLtJB ROYAL ORCHESTRA
REDUCED TO
75c
Seiberling-Lucas
Music Co.
125 4th St, Near Washington St.
Phone Your Want Ads to
The Oregonian Main 7.07.0 9 A 560-95,