The Sunday Oregonian. (Portland, Ore.) 1881-current, February 03, 1918, Section One, Page 6, Image 6

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Sinkings of Merchantmen Are
Wow Under Mark Set Prior
to Unrestricted War.
Tlrt Lord of British Admiralty
Folats Oat That Germany Most
1'aJslfr Records of Sinkings
to Satisfy People.
ZftWOS. fw. X. "Trie aubmartna Is
Tttus. to fo-ar words. Sir Erta Camp
bell Gsddsa. First Lord of ths Ad
mlraltjr. jrsstsrday lummirlitd lbs rs-
nltl nf Ik. Mr vamp .r nirmnf!
vnr.trtct.d submarine warfare. tic ""7' "
abmartns Is In bo war Awiual In effi
ciency to the U-boat of s year ijo."
Gilbert Tan Camp Charges Ills Glrl
Wlfe With Desertion.
LOS ANGELES. Jan. it Throu.h
Attorney E. E. Sldebolten suit has been
filed la tbs "superior Court by Gilbert
G Van Camp for divorce from Alice
Van Camp. The charge Is desertion.
Tbs plaintiff, who has 11 red In the
harbor district for ths last three years,
la a son of ths packer of that name.
Ths young nan la an employs In ths
Vsn Camp plant at San Pedro.
Ths Van Camps were married aeY-
eral year. ao. Mrs. Van Camp being
the daughter of a wealthy Indianapolis
family. They cams to the harbor dis
trict to live, but It Is said that Mrs.
Van Camp became dissatisfied with life and left more than a year ago to
live with her parents. ihers are no
children and I: is said that no special
property Interests are Involved in ths
Rules on Personal and Corpor
ation Measures Completed.
Depletion In Case of OH, Gas and
Mining Companies Provided For.
Certain Dividends Held Not
Taxable a Income.
Programme One of Best Ever Ren
dered Before Portland Audience.
Portlanders played a prominent part
In the appearance of the University of
Oregon ; ee Club at Lincoln High
began February 1. a year ago.
A measurs of Its fatljrs. he added to
ths correspondent, was found la the
fact that sinking of mercinl ships
Bow had been reduced to a level lower
than before Germany cast aslds ail re
"I am aa optimist . regarding ths
C-feoat war." said Sir Eric "The sub
msrtne. restrained and nrre. trained.
ba met and ha. not proved In
vlrxMble. 1 am Inclined to think that
Bow. sines I made my last public state
ment. we are sinking submarines as
fast as Germany ran build them.'
"My 'curves are all good and
cannot see any way In which the situ
ation can be changed except for ths
Mere Skips "Seeded.
"The sooner ths better Is now ths
allied aavy'a aim. But you sea there
still is a but. and It Is a very Important
ne we nut have more ships If we
are abls to turn this German failure
Into a positive allied victory. Ths sub
marine deatructlon of the world's ton
Base Is not a big percentage of ths
whole, but the submarine deatructlon
still eaceeds ths production of ships
and meantime the demands for ton
Bags are increasing by leaps and
Turning to ths pro-tress of ths cam
paign against the German submarine,
air Eric again referred to ths satisfac
tory trend of the curves to which be
kas referred In several of his speeches.
"Ail the curves continue to bend In
the right direction." he said. "The de
atructiun of allied shipping decreases
rapidly: ths conatruction of merchant
iiirpiag Increases steadily and the
sinking of German submarines steadily
Cerssas) Ezaggeratlea Grows.
Thsrs Is still another curve which
I keep. I never told the public about
It. but It gives me personally much
satisfaction It Is the curve repre
senting what I call the factor 'exag
geration' In the German official state
ments of L'-buat results. Let at ex
platn that curve briefly.
"Every month since the nnrestrlcted
submarine war begin the Germans
have Issued an official statement of tbs
total amount of tonnage alleged to
have been sunk during that month.
We found from the very fir.t month
test there wss a certain "margin of
exaggeration' that Is. the German Ad
miralty always added a few thousand
tons for good measure.
This margin of exaggeration was
fairly small In ths sarly months of un
restricted warfare. -VWth Lha lessen
ing sf ths German successea of July.
August and September the margin of
exaggeration began to Increase. The
German Admiralty found tteelf obliged
to falsify Its returns more and mors
flagrantly In Its effort to persuade ths
German people that ths L"-boat was a
continuing success."
eiUlaga treat aa Km.
8!r Eric referred to the 3erman
claim that the decreased sinkings wers
das to the decrease la the number of
ships sailing.
"That Is false. he said. "Sailings
and arrivals are Just as numerous to
day aa they wers a year ago.
Ths correspondent referred to Pec
retary of War Maker's statement of I
few dsya ago concerning the German
plan for concentration against amerl
can transports.
"There Is no doubt." said Sir Eric.
"that ths U-boat will bend svery ef
fort to attack American transports.
and If you are to bring across ths At
laatlo ths number of troopr that you
plaa there will bs losses, and probably
heavy on. a, (or life-saving la mld
Atlantle Is aet easy.
"I do not doubt that Mr. Baker had
good grounds for his statement, but
we have no evidence to support ths
vi.w that the Germane at present are
withdrawing their l -boata In prepara
tion for a concentrated attack against
the Amsrtcaa lines of communication.
"Ths steady decrease of merchant
sinkings tl do not refer to the abnor
mally good weeks of this moot) a not
due. I am convinced, to any withdrawal
of submarines from ths shipping lanes,
but to the steady Improvement In the
allied methods of deaung with them."
ftey Poller Wlaa.
Ths British policy of entire sscrsey
regarding ths sinking of L-boats waa
"thir policy of secrecy." ha said. "has.
I believe, much to do with the steady
deterioration la the morale of the Ger
man submarine crews.
"We know from prisoners how much
this policy of .ecrecy wears oa tbs
German U-boat sailors. Every month
there are German submarine crsws wbo
fall to return to their base
wbleh nothing Is ever hesrd.
tlon from tbs valley city. Tns club I
aa strong, an organisation as ths uni
versity has ever sent to Portland
delight local audiences.
The progrsmme opened with a rol
licking chorus by the G ee Club, fol
lowed by a bsritone solo. "Evenin
Star." from W-agner's "Tannhauser.
sympathetically sung by Curtis Petsr
son. of Eugene. Then the club re
turned to give an endearing Krenrh folk
song and followed nith an equally ap
pealing number. Other numbers
helped to mske the programme one of
the best sver given In this city.
Accused Man Denies lie la Person
Wanted by Officers.
LOS AXGEL.ES, Jan. !. A man
giving his name as Francis True, bu
wbo. it is alleged by Kederal officers.
Is Orrln Robertson, who Is under
dlctment In Kansaa City, charged with
concealing the asaeta of a bankrupt
claimed to be valued at tics. 000. was
arrested by Fred H. Bod en. of ths
Iwpartment of Justice, at 177 Alesssn-
dro street, where True, who says he
is a physician, has for some time been
conducting a sanatorium.
Trua denies strenuously thst hs Is
Robertson, and claims that he v
never mixed up In any shady business.
The matter will be further investi
gated today. Ths accused is in ths
County Jail.
'Llghtlc- Night" KesnlU in Great
Savins of Fuel.
"WAJfHIVGTON". Jan. IS. Washing'
ton's first "llghtlesa" night under ths
latest order of the fuel administration
resulted In an appreciable saving of
coal by ths Potomac Electric Power
The order dimming signs, which
was characterized by the fuel admin
istration as a failure, saved only 15
tons of coal a month bv the power
company in vlashlngton. Though exact
figures are not available. It Is believed
that 16 tons of coal or mors were saved
last night by the dimming of all signs.
S. Signal Corps Reports Airplane
Prof-raninie Progressing.. 1
WASHINGTON". Jsn. :3. Ths United
States Signal Corps "is ahead of
schedule In sll its work." General
Saltsmann. acting chief signal officer.
aid In submitting an annual report to
This laconic statement was prac
tically all his message carried to In
dicate that Americas air work Is
really well on the way to accomplish
"Conditions." hs wrote, "prohibit ths
publication of details showing the
progress In personnsl and material. "
Socialist Kditor Vses Wrong Name
In Making Application.
WASHINGTON". Jan. IS. E. C. Key-
ser. who Is said to be a correspondent
for a Philadelphia Socialist newspaper,
was taken Into custody by . an agent
of the Lepartment of Justice on the
charge that he waa trying ts obtain
pass for the State. War and Navy
epartment building under the name
of "K. E. Hamilton. '
When arrested Keyser said ha frs-
quent'.y wrote articles under the name
of IU E. Hamilton. and that he saw
no barm la having bis pass made out
that way.
Rigid Regulation of Sugar and Flour
Sale Found Necessary.
CLEVELAND. Feb. S. Adoption of
the card sy.tem t control distribution
I of sugar, flour, flour substitutes and
other cereals to grocers and retail
m-A ? I stores was annouueeu nere touay or
Chairman Bishop, of the city and
-Th. l.rrr... . .1 mnr.l. r.n. tounij. lima comwuirm. L am ormr win
under the acid te.t of this of t-repeat.d ' n, bruary i. The action
,,, r ..,. -rh average I 'olloed revelation of a serious situa
tion nere. particularly sua regaru ko
WASHINGTON. Feb. 1. Regulations
governing administration of the per
sonal and corporation Income tax were
completed Friday by ths bureau of In
ternal revenue and will' bs ready for
distribution early next week, Xlost of
the provisions are the same as thoss
covering the old Income tax. The ques
tion of Inventories is lsft open to be
covered by a special regulation later.
Among the more important new ref
lations are those relating to dividends,
depletion in tha case of oil. gas and
mining properties and payments from
depreciation and depletion reserves.
"The ruling on dividends in sub
stance." says aa official memorandum
on the regulations, ."Is that dividend
paia raring 1MT will be deemed to
have been paid from 1917 earnings I
sucn earnings au-ing the year were
greater than the dividends distributed,
unless the corporations show that
tbs tlms of distribution of any panic
nlar dividends ths eafnln-rs were not
sufficient to cover.
A new ruling as an alternative to
the existing one has been provided for
computing the amount necessary to re
turn capital invested in oil and gas
wells, the rule being based upon an
estimate of the units contained in th
property, and fee owners and leases
are placed npon tha same basis Insofar
aa bonuses have actually been paid for
"In regard to mining- corporations. I
Is stated that In passing on values set
up as of March 1. 11S. aa a basis for
depletion the department will give due
weight to market quotations on card
tal stock aa of that date and to values
stated by the corporations in their cap
Ft tal stock returns.
It Is held that dividends paid out of
depletion or depreciation reserves are
in the naturs-of a liquidation dividend
nd are a return of capital to the
stockholders and not taxable as in
come Such dividends will not be so
regarded, however, unless the Income
and surplus have been first distributed
and the fact that their capital has been
reduced or partly returned is made pub
lic in their published statements.
Provision has also been made re
versing a previous ruling and holding
as to stock returned to corporations
upon reorganisation for purposes of
resale to raise working capital, that
the proceeds when sold shall not be
treated as Income.
A provision of former rulings that
forgiven debts constitute Income to
the debtor has also been stricken out.1
mH EillMiHHBBillwaiBlkMIIBIalllillMallHlwISIIIallBliMIIIHIIflCKI
Farmer Exeemtlve, Xw Drawing Cia,
00 aad Doing Little. Falls to Caa
vIbcw Casasslttee of Ability.
Ington. Feb. 2. There Is jio likelihood
that the Senate commerce committee, on
the evidence now before It, will recom
mend that the Shipping Board relin-
auish its control and management of
the Sloan Shipyard at Olympia. wastu,
and restore that property to the man
agement and direction of Philip I.
Sloan, president of the Sloan Shipyards
Corporation. For while the evidence
discloses that the Sloan yard Is. seem
ingly, a good property And can be made
to produce ships, the record, especially
the testimony of Philip D. Sloan, did
not satisfy the committee that the own
era of this property ara as wen
equipped aa the Shipping Board to carry
forward ths contract for building is
Ferris ships for Government account-
So far as the physical plant or the
Sloan Company is concerned, Mr. Sloan
had little difficulty In convincing the
commerce committee that he had the
means necessary to carry through con
tracts for tbs Government, but on ques
tions of business management, finan
cial transactions, stc Mr. Sloan did not
convince the committee that he should
be restored to control.
On his second day on the stand. Mr.
Sloan was making a plea to have his
yard returned to him. He told how the
Shipping-Board had taken control, had
turned out most of bis employes, and in
stalled new men. Asked bow he him
self had been affected under the agree
ment by which the Shipping Board took
over control of his shipyard, Mr. Sloan
aald he thought he waa to be consulted.
but found out to the contrary. "1 sat In
mr office in Seattle for five weeks and
ths only time I waa consulted was when
they wanted to remove the Premier
Engine Works up to Olympia," he said.
Cocoanut Oil Fine
For W ahin Hair
keep your hair In
careful what yoa
If yoa want to
good eondltlon. bi
wash It with.
Most soaps and prepared ehsmpoos
contain too much alkali. This dries
the scalp, makes ths hair brittle, and Is
very harmful. Just plain mulaifled
cocoanut oil (which Is.pura and en
tirely greaselees Is much better then
tha most sxpensive soap or anything
!ie yoa can use for shampooing, as
this can't possibly Injurs the hair.
Simply moisten your hair with water
and rub It In. One or two teaspoonfuls
will make aa abundance of rich,
creamy lather, and cleanses ths hair
and scalp thoroughly. The lather rinses
out .a.i.y aad remove every particle
sf du't. dirt, dandruff and excessive
OIL The hair dries quickly and evenly,
aad It leaves It fine end silky, bright,
fiuffy and easy to man-ge.
Yoa can get mulstft.d coeosnut oil
at most any drug store. It Is vary
cbeap. aad a few ounces Is enough to
last everyone la tha family tor months
Profiteers to Be Curbed.
WASHINHTON. Feb. I. Unwarranted
price increases In wheat flour substi
tutes wi.l not be permitted. Tbe Food
Administration tonight gsve wsrnlng
to dealers that they must not take ad
vantage of temporary shortsges In oth
er cereals brought on by the heavy de
mand ths new baking regulations havs
Many complaints resetted Food Ad
ministrator Hoover today that dealers
In the substitutes already have begun
to lift their prices.
"Mills of the country." said Mr.
Hoover, "are prepared to meet the
greater demand of housewives snd
bakers for other cereals during the
next few months. Lack of transporta
tion is the only factor that will stand
In the way of proper distribution
throughout the country.
"Unlicensed food retailers who sell at
more than a reasonable profit will have
their supplies cut off through ths noti
fication of licensees by the Food Ad
ministrator forbidding them to receive
orders for food from such ret altera"
A Korean lad holds tbe world's rec
ord for rapidity at figures. Recently
be added mentally a column of JS items
of four figures each In seven seconds.
II. C. Campbell laterrapts Judge McGlaa
la Midst sf Dlacuaalea mt
Slx-Cewt Carfare.
Verbal pyrotechnics were touched off
with a genuine sputter at the luncheon
of the Portland Realty Board at the
Benson Hotel yesterday, when H. C.
Campbell interrupted Judge Henry E.
McGinn with a question when tbe latter
was In tbe midst of a discussion of the
(cent fare situation.. 0
Judga McGinn. "in reviewing the early
history of the street railway system,
had made ths statement that the valu
able franchises now owned by the Port
land Railway. Light A Power Company
were acquired originally from the city
without price through political manip
ulation and afterwards disposed of for
a fabulous sum.
"What Is your motive for attacking
the street railway company?" Inquired
Mr. Campbell.
"I am actuated by purely patriotic
reasons and a desire to see that the in
terests of the people are properly pro
tected." answered Judge .McGinn.
"In the past whenever you have gone
out on one of these crusades you always
wanted something at the hands of the
people." came back Mr. Campbell, "and
the people will soon find out thst you
are expecting something for your pres
ent attack. It may be a United States
Senatorship or the office of Mayor of
Portland, bat there Is something you
will want."
"Yes. and be will get It on bis rec
ord," chorused ths luncheon guests.
Good Taste
in Diamonds
There's nothing: that -"fives
more dignity to the wear
er than the properly chosen
Diamond King. There is
good taste in diamonds, as
in all other jewelry, but
my $50 and $100 special
rings are correct for
either man or woman at
any time or place and un
der all conditions.
Credit accommodations
without extra charge.
jLars-mt Diamond Dealer
la OrcBTon
OppMlte Owl Dnif Ca.
ho, while enjoying the passage at
words, apparently were not unfriendly
to Judge McGinn.
In the main, the remarks of Judge
McGinn did not differ essentially from
other discussions he has made In public
on the same subject. He charged that
the increased fare had been obtained by
the street railway company by unfair
means and renewed his charge that the
members of the Public Service Commis
sion, which msds the order granting
the greater fare, was controlled by the
officers of the railway corporation.
"You need expect no assistance from
the City Commissioner? in this fight to
secure a reduction In the 6-cent fare.
added Judge McGinn, "for they are wfth
the Portland Railway, Light & Power
Company in this controversy. The street
railway company had a hand in the
election of Mayor Baker and several of
the City Commissioners and they are
merely doing what is expected of them
by the Interests that helped in their
The very best work you can do Is to
abolish the Public Service Commission.
The members of that body are abso
lutely In the control of Franklin. T.
Griffith, president of the Portland Rail
way. Light & Power Company. He
has at all times had free access to the
front and back doors of the commission
and never has any trouble in getting an
audience. But not so with LaRoche,
your City Attorney, who is employed
ana paia oy tne city ana is supposed
to look after the Interests of the whole
city. But he never was there.
'Residents of this city may well ad
vertise to the rest of the world and ad
vise them not to come to Portland if
they have any Intention of doing so.
We now head the list of jay-towns on
the Pacific Ctast. We have a City Com
mission that does not possess the neces
sary backbone to stand up and assert
its rights under a solemn and binding
contract. They do not have the Inter
ests of the people sufficiently at heart
to insist upon the fulfillment by the
street railway company of the terms of
Its franchise, which plainly stipulates
that a s-cent fare only shall be charged
for passenger transportation on Its
In this connection Judge McGinn
scored Mayor Baker and the City Com
missioners for their failure to restore
the jitney service in competition with
the street railway and said the people
could not expect any relief from the
situation at the hands of the city ad
ministration. He advocated restoration
of a jitney service as the most certain
way of forcing the utility company to
abandon its 6-cent fare and restore the
former charge of 6 cents.
Department af Justice Receives Haay
Reoneerta for Rulings oa Cltl
aeashlp mt Aliens.
WASHINGTON". Feb. 2. The Depart
ment of Justice has received many re-
uests for special rulings on the citi-
tenshlp of aliens In preparing for tha
Nation-wide registration of German
enemy aliens next
All unnaturaljxed German males
above the age of 14 will be required
register between next- Monday and
Saturday with the police of cities
bove 6000 population and with post
masters of smaller communities of
rural districts There will be no
charge except for the four copies of
the photograph which the registrant
must furnish. Tbe subjects of Austria
Hungsry and women are not compelled
register. Men torn in the United
States of German parents, or fully
aturalixed here, need not register, but
hose who have taken rut only their
first papers will have to enroll- Former
residents of, born
It's Real Efficiency Applied to Selling of Men 's Clothes
We make less profit that we may do more business. Every customer who buys a Gray's
twenty or thirty sends his friends here because of the value hereceived. We do a
strictly cash business and have no losses to make up from bad accounts, as other stores.
Since adopting this profit-sharing policy our business has more than doubled in the
Clothing Dept. When we tell you we will save you at least half the profit you pay else
where we will do it.
Compare Gray's
Suits and Overcoats with those sold by
other stores for $25 and $30.
Compare Gray's
Suits and Overcoats with those sold by
other stores for $35, $40 and $45. .
After You Have Compared We Will Supply Your Clothes
there after the German seizure In 1871,
are regarded as enemy aliens, even
though they are of French descent and
sympathies. .
Special efforts are being made by
the Department of Justice, by police
and postoffice officials and others as
sisting in the registration to eliminate
any idea that the registration implies
any specific blame on the part of the
Charles E. Danl Purchases Property
at Cost of $25,000.
The $25,000 three-story home of the
late E. Z. Ferguson, at 825 Alameda
drive, has been purchased by Charles
E. Dant, of Dant & Russell, according
to an announcement Friday by K.
T. Street, xrvtngton realty dealer.
through whose agency the sale was
transacted. The cash consideration Is
said to be around $25,000.
The Ferguson house is situated on
quarter-block of level land on the
crest above Alameda drive. It is one
of the most conspicuously attractive
homes in that neighborhood, with a
brick exterior and the interior finished
in oak and mahogany.
The sale of the Ferguson house is the
largest all cash deal to take place on
the East Side since the outbreak of
the war. 1
Th Ld In g Ft ares f the Leading
Machine all harmoniously combined In
one naruiaonia New Trouble-free Writing
Machine of tbe First Quality In which
you will find your own favorite feature
of your own favorite typewriter, and tha
others bealdea.
SOt Oak Street.
"T -UFi' ' -' X. '
f l :
So Easy and
Sweet Music'
Four or five lessons all" you
require. No previous knowl
edge "of music necessary.
C o m p 1 ete Outfits,
t n e 1 u d I as every
thing neceswary for
beginners. Including
Graves Music Store
. 285 Morrison St. (at 4th)
Free Lessons with every Uk
ulele and other instruments.
If you will hold an investigation over the shoe proposi
tion you will find that the Ground Gripper Shoe is sold
far below other high-grade shoes.
We specialize on the one shape and therefore are in a
position to give you more for your money.
There is no other shoe like them at any price or any
other place.
Ground Gripper Shoe Store
u r
" (
from eye strain is assured by wear
ing my
Perfect Fitting Glasses
Dr. Wheat
207 Morgan Bldg.
"rVashington at Broadway.
Formerly in the Corbett Buildin-Ji
Portland Motor Car Co. i
I -. ;
1 ' .. : : . : . . i
" ' t" ' " - I
m r-i j rr rr..: r n,i rri. u
lOUTing Vais aim j.rukis im -uaia auu xiui-m . j
i I I i !
j I ,
Fastest Car in the World, with Packard Twin-Six j
- ' Aviation Motor on exhibit in our showroom from I
February the Fifth until February the Thirteenth.
i . j
. ' ' ' j!
i 3