Off 94 Pages Eight Sections. Section One Pages 1 to 20 VOL. XL "SO. 21 Entered at Pert land iOri Pontofflo Second-Class Mutter PORTLAND, OREGON, SUNDAY MORNING, MAY 22, 1921 PRICE FIVE CENTS LsTTn!iLLIETTEIIIuE 200 NATIONAL GUARD WILL GONTO CAMP OREGON BOYS TO HAVE AVEEK OF IXTEXSIVE TRAIXLXG. CRISIS IS PASSED GIRL STRUCK BY AUTO IS BADLY INJURED MARY XICOtAI, DODGIXG OXE CAR, RCXS IXTO AXOTHER. STILLMAN ANXIOUS TO DITCH TROUBLES 'Vixoirum 10 uuim-u ACCEPT WAGE CUT PHONE REHEARING SET FOB JUNE 11 Minn LOSES SPEED PUCE Temporary Check Fore cast for Tomorrow. BANKERS DECLARE SETT IEMEXT WITH JVIFE FRp POSED BY LAWYERS. RECORDS, MASTER COMPASS AND EQUIPMENT WIPED OCT.. V Public Service Commis sion Issues Order. RATE INCREASE SOLE ISSUE March Order to Stand Pend ing Investigation. NEW EVIDENCE POSSIBLE Commission Expresses llope Thai Data Presented Will Touch All Sides of Case. SALEJt, Or.. May 21 (Special.) Rehearing of the Pacific Telephone & Telegraph rate case has been set for June 27, in an order issued by the Oregon public 'service commission 46- day granting a review of the order of last March, which Increased telephone rates throughout the state an average of more than 30 per cent. The hear ing will be held in Portland. In connection with the order for a rehearing the commission held that the petitioners attempted no showing whatever to justify a suspension of the rates fixed in the schedule of last March, eiher in whole or In part, and therefore the commission was warranted In assuming that neither the law nor the facts support their contention. As a result of this the present rates will continue in effect pending the outcome of the rehear ing. "Primarily,", said the order, "the city of Portland in its application acts on its own behalf and on behalf of other cities and towns In Oregon j that have elected to Join with it. We were Informed by the'eity attorney. In oral argument, that the principal cities requested that Portland repre sent their interests. Consequently, waiving for the present technicalities, we assumed that Portland appeared for the various Interests except In such Instances as cities, associations or individuals actually filed applica tions. Only Oae Order Involved. "It will serve no useful purpose to rehearse the grounds here. Irrespec tive of many references by the city of Portland in its petition on mat ters touching other and prior orders of the commission affecting telephone rates, there is but one order, and one order only involved at this time in the rehearing. This is the order Is sued last March, known as No. ,689. Evidence and testimony on orders other than this ere not only redun dant, but Irrelevant and Immaterial, and any attempt to reopen other or ders is apparently made deliberately for the purpose of adding confusion and clouding the issues. "The telephone situation In all its phases has been thoroughly covered in numerous bearings heretofore held, as shown by the voluminous records in detail practically from the .time of the first establishment of a telephone station in- the state of Oregon to the present time. "The orders heretofore issued have become law. No appeal was asked or taken from any of the orders, and they must therefore stand. "Petitioners for rehearing attempt ed no showing whatever to justify a suspension of the rates fixed in order 689, either in whole or in part, and therefore this commission is warrant ed in assuming that neither the law nor the facts support their contention. New EviaVmce Hinted At. "This petition for rehearing has very remotely intimated that there might be some new facts and evidence to support the grounds alleged; but there are no allegations in the form! of affidavits or corroborating state ments as to any calculations on the part of the applicant that forms a Units Represented at Clackamas Will Be Infantry, Field Artil lery, Engineers and Staff. - - . -i SALEM. Or! May 21. 'Special.) Two hundred officers and selected enlisted men of the Oregon national guard will go Into camp Monday morning for a week's Intensive train ing preliminary to the maneuvers at Camp Lewis next month, according to final instructions issued today by George A. White, adjutant-general of the state. The camp will be held at the state rifle range at Clackamas, where tents have been erected and a model camp laid out. The units represented will be the Infantry, field artillery, engi neers and staff corps. The heavy ar tillery schools occurred during 'the last week at Fort Stevens. One of the features of the camp will be instruction in combat firing. The Instruction features will be directed by Colonel Cv E. Dentler, United States army. Several army officers from Camp Lewis and Vancouver bar racks will also act as instructors. Detachments will leave for Clacka mas tomorrow from Medford and Roseburg and on Monday from Eu gene. Salem, Dallas, Woodburn, inde pendence, McMinnvllle, Corvallls and Portland. Business Situation Fun damentally Sound.- FEDERAL RESERVE IS TESTED New System Held to Have Proved Its Worth. READJUSTMENT GOING ON - re purchasing Power of Dollar Xow Growing' and With It Result ant General Prosperity. " TARIFF BATTLE FORECAST Party Lineup on Resolution Indi cates Fight Xext Week. x WASHINGTON, D. C. May 21. The house ways and means committee re ported today a joint resolution under which new schedules in the perman- nt tariff bill would be made effective immediately upon Introduction of that measure, if the committee held that an emergency for such steps re quired It. ' The action of the committee was by a strict party vote, all -democrats present opposing it: Representative Garner, democrat, Texas, a member of the committee, announced that he ould reserve all points of order, in dicatlng a democratic fight against its passage. Republican' members said privately that efforts would be made to rush it through, probably next week. Left Lung Punctured by Broken Rib "and Victim. May Die as Result of Accident. Mary Nicola!. 14-year-old daughter of Mr. and Mrs. Harry T. Nicolai, 9S1 Westover road, received injuries which mav Drove fatal when she was hit by an automobile driven by H. J. ' Blaesjng, at Twenty-third and Washington streets, yesterday after uuuu. .- According to Investigation by traf fic bureau officials. Mr. Blaeslng, was cot responsible for the accident. Miss Nicolai, it was reported, was attempt ing to dodge, another machine, when she ran .directly In front of the car driven by Mr: Blaesing. Mr. Blaesing picked up the uncon scious girl and hurried her immedi ately to St. Vincent's hospital, where attending physicians said her condi tion was serious. . The left lung wis punctured by a broken rib, and t was feared she might have received other internal injuries, i Mr. Nicolai, the girl's father, is president of the Nicolai Door Manu facturing company. ACHILLES TENDON , TORN Accident at Gymnasium Sends Chester G. Murphy to Hospital. Chester G. Murphy, Portland attor ney and former athlete, is convalesc ing at Good Samaritan hospital from an operation he underwent last week to mend a serious rupture of the Achilles tendon In the left heel. The tendon was ruptured while he was playing handball in a gymnasium Monday. According to physicians and sur geons, a rupture of the Achilles ten' don Is considered a serious accident as this tendon controls the muscles leading from the heel to the toes. Mr. Murphy will be confined to the hos pital for another two weeks. (Concluded on Page 8. Column 1.) DRUGGIST IN DEATH TRAP Cloudburst Fills Basement, Man Caught in Flood, Drowns. GRANGEVIULE, Idaho, May 21. P. M. Granville. Grangevllle druggist and former county superintendent of schools, was drowned in the basement of his store building at 3 o'clock this afternoon during a cloudburst which caused the creek passing through the town to overflow and flood tbe base ments. - Mr. Granville had gone Into the basement to remove goods and waa caught by the flood waters. MORE SHOWERS FORECAST. Belter Weather Latter Part of Week Is Predicted. WASHINGTON, D. C, May 21 Weather predictions for the week be ginning Monday Issued by the weath er bureau today are: ' Pacific ' states Normal tempera ture, local showers first part, fair thereafter. BY HARDEN COLFAX. (Copyright, 1921, by The Oreaonlan.) CHICAGO, May 21 (Special.) The banking and business situation is fundamentally sound and the danger of a credit crisis has been passed. This Is the mature opinion and best judg ment of the soundest bankers In the middle west and in its way is an an swer to the critics of the federal re serve board when a sharp advance In discount rates was held responsible for a too-speedy deflation from war time levels. As a matter of fact, it was the after-armistice business and speculation which' strained the money reserves of the country to tbe limit.' Those charged with the administra tion of the federal reserve banks had never before had opportunity to test the power of, high interest . rates to cause business to alow up and thereby decrease -the demand for bank loans and improve the reserve position. Many people were skeptical about tbe success of such an effort. But there is now no doubt of Its efficacy. The Increase in the rediscount rates of the reserve banks and the conse quent increase of the rates on com mercial loans by all banks, had an immediate and increasingly strong in fluence on all business. The price of money became so h'gh that business I BERNHARDT IS DECORATED Spanish Cross of Alfonso XII Be stowed . Upon Actress. MADRID, May 21. Sarah Bern hardt today was decorated with the cress of Alfonso XII. King Alfonso will receive Madame Bernhardt when she returns to Ma drid from Malaga. - Allowance of $90,000 Yearly and Recognition of Child's Legiti macy Under Consideration. NEW YORK, May 21. Settlement of the divorce suit brought by James A. Stillman, millionaire, banker. against Mrs. Anne U. Stillman, in volving recognition of the legitimacy of the infant, Guy Stillman, has been sought . by Mr. Stillman's attorneys. the New York Times announces In ,lts Sunday morning edition. . The terms are still under negotia tion, the newspaper states. They, provide for a separation agreeement between ' Mr. and Mrs. Stillman whereby she is granted a yearly al lowance of $90,000, the abandonment of the divorce proceedings and recog nition of the child's legitimacy. The latest proposals for a settle ment are reported to have come frarn Mr. .Stillman's attorneys. Mrs. Still man is said to have been acquainted with them earlier in the week. She is said to have asked for a continu ance of her present allowance of $7500 a month, but her husband's attorneys are understood to have opposed such a sum. Should negotiations for a settle ment be successsful, attorneys are expected to appear before Justice Morschauser and ask for a discon tinuance. This, it is said, would automatically establish Guy's legiti. macy, as the paternity of a child In such circumstances cannot be at- Engineers Agree to 15 Per Cent Reduction. WORKING RULES CHANGED (Concluded on Page 14. Column 2.) INDEX OF TODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature, 72 degrees; minimum, 49 degrees. TODAY'S Fair; westerly winds. Departments. Editorial. Section 3, page 8. Dramatic. Section 4, page 2. Moving picture news. Section 4,' page 4. Real estate and building news. Section page 8. Music. Section 4, page 6. Churches. Section 5, page 2. Books. Section 5. page S. . Schools. Section 5, pae 8. Automobiles. Section 6. " Chess and checkers. Section 6. page 8. Women's Features. Society. Section S. page 2. Women's activities. Section 3. page 10. Fashifina. Section 5. page 4. Miss' Tingle's column. Section 5, page 4. Madame Richet's' column. Section i page 5. , . - Auction bridge. Section 6. page o. men found it-necessary to stimulate I CniId ""'a column. Section 5, page 7. their business so Abat they could pay Special Features. . ' ... their debts to tno banks. The banks refused to renew leans unless the bor rower Had very good reasons back of hls'request. The reserve banks com pelled the banks to pay in order that the 'reserve position might be strengthened. Prices Had te Drop. So, n addition to paying a higher price for money, if they got it. bor rowers at banks had to turn their merchandise into cash to pay their bank loans. Turning merchandise into cash means that prices must be made tempting. The increase in the re discount rate, therefore, operated to orrng apoui a towering oi tne general price level. In any event it had a marked influence in producing that result. . The process described can be justi fied by the 'nature of the exigency that the country faced. There was not. enough reserve money to warrant the business speed at which the coun try was traveling. The alternative would have been a smash, a panic and chaos.- The process adopted was or derly, scientific and effective. The price of money may possibly have been manipulated; it may have been arbitrarily fixed, but however it was. it was effective. The banker contends that the high est service he renders his community is lii distributing credit when -there is not enough to go around. The banker declares he is well within his rights as a public servant -When he says to one merchant v''ou cannot have that much,' and to another "you can have none at alL" The bankers have been preventing commercial fail ures, not promoting them. A high price for money made their task easier. It made the work of controll ing credit less difficult. With the approach to a final adjust- (Concluded on Pag 2. Column 1.) J. K. Gill wins, honorary fellowship. Sec tion 3, page 7. Oregon fir used by Peru mining concern. Section 3, page 11. Corvallls co-eds grind out teapots. Sec tion 3, page IK . - Huge copper, gold and silver deposits found at Portland s back door. Section 4, -page 5. Explorers 'plan to scale Mount Everest. Section 4, page 7. Hill Military cadets enjoy encampment at t ort btevens. bection 4. page 7. ' Speed spelled by local craft. Magazine sec tion 1. page 1. Tendencies of ultra-modern art. Magazine section, page 2. Mirage of gold entraps many In Baker estate hoax. Magasine aectiont page 3. News of world as seen by camera. Maga sine section, page 4. Hays human live wire who delivers letters. Magazine section, page 5. Newest marvels of zoo surgery. Magazine section, page 6. The Other Shoe, fiction feature. Magazine section, page 7. Hill's cartoons "Among Us Mortals." Mag azine section, '.page 8. Home building and arrangement. Section 3. page 1. George Ade fable. Section 9. page 1. James J. Montague feature. Section 5. page 6. Darling's cartoons on topics of the day. Section 5, page 7. Two women college professors start on world hike. Section i, page 8. -Foreign. . German commerce sees hope in east. Sec tion 1, page S. , Poles are blamed for Slleslan war. Section 1, page 3. - Briand-Lloyd George row over upper Silesia subtle political game. Section 1, page 4. British Columbia log prices falL Section 1, page 7. Pepe sends plea 'for peace in Erin. Section 1; page 2. Germany baa gold enough to pay bill now due. section 1. page 14. Farrell attacked In shipping debate. Sec tion 1, page 14. ' ' i National. ', Marine workers accept wage cut. Section 1, page 1. Harding's programme of foreign affairs makes good progress. Section 1, page 5. Senate committee hears of Columbia basin I Irrigation possibilities. Section 1, page 2. 1 Domestic. Crisis passed and business situation sound, say bank authorities. Section 1. page 1. Mrs. Stillman to get t'JO.000 annual allow ance in divorce suit settlement. Section 1. page . Presbyterians Indorse Billy Sunday. Sec tion 1, page 4. v Gardner reported surrounded. Section 1, page 6. Pacific Northwest. Governor names tax investigation commit tee. Section 1, page 3. Three hundred agricultural college men to entr summer training camps. Section 1. page 7. Crash of non-partisan league befuddles Idaho. Section 1, page 8. Two hundred selected men of Oregon na tional guard go Into" camp this week. ' Section 1, page 1. June 27 date set for rehearing of telephone rate case, section 1, page 1. Radio Operators and Seamen to Sign Separate Pacts. OFFICIALS HOLD CONFAB Strike' Settlement . to Affect All Government-Owned Craft on Atlantic and Pucific. WASHINGTON, May 21. Accept ance of the 15 per cent wage reduction for marine engineers demanded by the shipping board, but with modifica tions as to working conditions, is un derstood to be' Included In an agree- ent reached here today at confer ences between Secretary Davis, Chair man Benson of the Doard, and repre sentatives of the Marine Engineers' Beneficial association. Separate agreements, it Is under stood, will be signed by representa tives of the radio operators and th seamen, The changes in working conditions and overtime, it was indicated, would bring the actual reduction in wages to somewhat less than 15 per cent. Secretary Davisf W. S. Jenkins of the shipping board and the marine en gineers' representatives will go" to New York today to confer with the American Steamship Owners' associa tion in an effort to have it. agree to the terms alse. The radio operators and seamet representatives would agree to the same terms, Mr. Davis believed- The settlement came as a result of an agreement Thursday night by the engineers to leave the matter to bee Coast Guard Cutter Called Out bnt Is Helpless; Man on Watch. Using Small OH Store. ABERDEEN, Wash., May 21. (Spe cial.) The Westport naval compass station, put in commission. April 20, was completely destroyed by fire at 6 o'clock this morning, entailing a loss of the records, master compass, other equipment and the building, and throwing the radio station completely out of commission.' The fire started from an oil-stove explosion in the watch room. The radio tower la un harmed. The man on watch was using a small oil stove for heating. The coast guard watch as well as the compass watchman turned In the alarm. The coast guard was called out, but was helpless, as the light frame building was quickly enveloped In flames. The compass station is near the witter line, almost directly west of the life-saving station. The wireless tower is located near the coast guard station and was not damaged. Canles connecting It with the compass, wera destroyed. Construction of the Westport radio station was started a year ago" this month. ' S. E. Fields, chief electrician. Is commanding officer at the plant. Compass station at Westport is burned. End of Washington coal strike In sight, rctary Davis with certain suggestions Section 1, page 14. as to working conditions and hours. The agreement affects all government-owned vessels on both the At lantic and Pacific Hports. Cpast tra.-Jc meet won by. Washington. Sec tion 2, page 1. Three new local speedboats are deep mystery, section 2, page a. American golfing stars beat British. Sec tion z,.page 6. . Defeated Olympic club water pololsts poor losers, section i, page 4. Stanford to have new football coach. Sec tion z. page 4. Major leagues on way. to batting Jubilee. section 2, page 3. Carpentier's stock has decided slump. Sec tion z, page Moore hard nut for Mascott to crack. Sec tion 2, page 2. Young net stara to play for titles. Section 2, page 2., Boys defy barbed wire to see Carpentler. aection i, page z. Harvard noses out Princeton in meet. Sec tion 2. page 1. Multnomah club to meet University of Ore gon swimmers, section 2, page 3. Commercial and Marine. Wheat movement from Portland for season breaks all records. Section 1. page 18. Rapid advance In Chicago wheat on crop damage reports, section . page ID. Stocks are lower under further bear sell ing. Section 1, page 19. Swedish motorship Formosa loading wheat ror export, section 1. page 17. Pacific ship operators to make effort to revive westbound conference. Section 1,- page 17. Upturn in security markets erratic Sec tion l, page 18. Portland and Vicinity. City seeks larger revenue by extending license taxation, section 1, page Id. Marshall Fraser, bine-sky law 'violator. sentenced to penitentiary. Section 1, page 10. 1920 lumber cut beats all records. Section 1, page 18. Delay In patronage Irks plum hunters. Sec tion 1, page 13. Mary Nicolai, daughter of manufacturer. run down by automobile. Section 1, page 1. Road commission to let Mount, Hood Job. section l, page 12. Public Health association of Multnomah county reports year's work. Section 1. page 14. Rise in Willamette loses speed. Section 1, page 1. . Patriotic bodies ban- Daddies' club. Sec tion 1, page 9. Reorganization of Albers Milting company declared certain. Section 1. page 9. UMOX OFFICIALS ARE S1XENT Engineers Body Today Will Discuss Reports of Officers. NEW YORK. May 21. Members of the Marine Engineers' Beneficial as sociation will hold a mass meeting here tomorrow to receive the report of their officer's Sent to Washington to participate in conferences with gov ernment officials regarding settle ment of the nation-wide strike. Meanwhile local union officials would make no comment regarding th report that an agreement had l?een reached in Washington today. They "were waiting for the report of Bert L. Todd, their representative, they said. Thomas B. Healy, representing the engineers of the Atlantic and Gulf coasts, and Ernest F. Pegs, represent ing Pacific coast unions, already had announced they would oppose any set tlement that carried a pay cut. Winthrop L. Marvin, speaking for the American Steamship Owners' as sociation, declared the owners would stand by their statements that they would sign no more agreements with seagoing unions. RESTRAINING ORDER SERVED Pickets Continue on Duty at Docks - Despite Federal Injunction. A, temporary restraining order, for bidding violent picketing operations In connection with the trke of ma rine workers, was served yesterday by deputy United States marshals on the local representatives of the vari ous marine unions. No great 'change In the attitude of the pickets was no- JUSTICES MCORSE TAFT Members of Oregon Supreme Court Telegraph President Harding. SALEM, Or., May 21. Members of the Oregon supreme court today joined in sending a telegram to Presi dent Harding urging that the latter appoint William Howard Taft as chief justice of the United States supreme court to succeed Edward D. White. The telegram was signed by all seven members of the Oregon court and was as follows: "Justices of Oregon supreme court unanimously recommend that you ap point William Howard Taft chief Jus tice of the United States supreme court." DRY AGEN-TIS ARRESTED Prohibition Officer Charged With Drunkenness in Spokane. SPOKANE, Wash., May 21. S. S Murphy, chief of the federal prohi bition enforcement agents in eastern Washington, was arrested here to night and booked at the city police station on charages of drunkenness. Murphy gave his name as "John Smith," according to the police, but members of the force immediately recognized him. Murphy was among the officers given a six weeks' furlough today when the Spokane office was closed by the government 4ue to lack of funds. CREST NOT YET IN SIGHT All Signs Point to Greatest Flood Since 1894. LUMBER MILL IS CLOSED Houseboats Float Among Telephone Wires and Halt lit Dredging Operations Threatened. DESTRUCTIVE ACTS OK SIM MER 1HHS1IKT SUMMA RIZED. Tortland Willamette river loses speed in rising, with tem porary check slated for tomor row. West Oregon lumber mill forced to close. Flour caught on lower dock. Dredging opera tions threatened. La Grande Another levre breaks. Heavy rains fall. Cath erine creek swollen. Flooded areas estimated at 31.000 acres. The Dulles Indian village flooded. Inhabitants quickly pack household goods and flee in rowboats. Columbia stands at 35.1 feet. Farmers rake and haul hay green. Hood River Additional truck gardens Inundated. Columbia records rlso of Inch an hour. Vancouver, Wash. Columbia Continues to rise, reaching 20 foot mark. Grain fields flooded. Livestock moved to hither pas tures. Kalama. Wash. High waters of Columbia endanger diking district between Woodland and Kalama. j. (.Concluded on Puge 15. Column 1.) 221 CHAMBER SEATS WON Coalition Party Has Safe Majority in Italian Elections. ROME, May 21. Final reports of the parliamentary elections lq Italy last Sunday showed that the coalition parties will hold 221 seats In the next chamber of deputies. The other po litical parties will be represented as follows: Fascista (extreme nationalists), 28; agrarians, 22; socialists, 125; Catho lics, 106; communists, 15; republi cans, 9 Slavs, 5; Germans, 4. The election of Slav and German deputies raises the question of the language to be used in the chamber. HEAT IN EAST IS ' FATAL One Death and Five PrositraMous Caused In Chicago. BOSTON, May 21. One man died and five persons were prostrated by the heat in Boston today, the hottest May 21 recorded here. The official thermometer touched 93 degrees. CHICAGO, May 21. Many heat prostrations were reported as the mercury climbed to 90 today, the highest mark ever recorded in Chi caero on May 21. : 4 Cooler weather over the watersheds of the Columbia and Snake rivers, with a fall of more than half a foot in the Snake at Lewiston. led to the prediction yesterday that the present flooding of the Willamette will be checked temporarily Monday, when a stage of 21.1 feet will be reached, and that the river will remain nea.ly sta tionary Tuesday. Tbe crest of the flood Is not yet In sight, however, according to Edward L. Wells, weather forecaster, and the flood will probably go to a stage tt from 25 to 27 feet before it brgins A recede in earnest.' The official gauge on the Morrlson stree. bridge showed a height of 19 t feet at R o'clock yesterduy morning an increase or 1.1 feet In 24 hours. By 4 P. M., the river had risen to 19.6 feet, showing a slight decrease In the rate of rise. A stage of 20 feet if forecast for today. Flood I'ropec Mlprh. Indications are for a flood this year that will be the highest since the "great flood" of 1894. On June 7 of that year the flood reached a crest of 33.4 feet. Since that time tbe highest water was a stage of 25 feel, reached June 23. 1899. A considerable quantity of flour was caught by the rising waters at the mill and dock of the Portland Flouring Mills company. A large force of men was busy there yester day morning moving sacked flour from the lower to the upper level of the dock, while other' men were car rying sacks, bran and other less val uable products but of the already full upper level and storing them In the open to make room for the flour. At the Willamette moorage house bonts were floating among the tele- (Concluded on Pun 13. t'oiumn 3.) EVENTS OF WEEK AS VIEWED BY CARTOONIST PERRY. vfs, 3uXvut- AN u H CUE. To YO u . crr v v- - c-s a V . - w v i v i SN I.I . )E.SMY- GO f1 f ( VTV'VXS ONLY AO VA.CS Y-ASE. VME. CAN EE N A VUOOD ANY HVG.HE.V5. 4 m 101.2