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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (June 11, 1922)
19 PACIFIC PACIFIC LINES CHIEF FIGURES IN RAILWAY TRIANGLE THAT PRESAGES BATTLE FOR CENTRAL PACIFIC PROPERTY. BEK TEAL'S EX-WIFE ACCUSED OF FRAUD Phone, write or call for this FIGHTS SOUTHERN y. x ; WASH I N jcT V '(KOK IAN TP 1 rTD n n Claim to Central Pacific . Is Opposed. Genevieve . Paddleford Ar rested in Vienna. . 102 LIVELY CONTEST LIKELY COSTLY FURS ARE SEIZED THE SUNDAY OREGOXTAX, FORTLAND, JUXE Ml, 1923 lf ' V I D A H Q.j Carl H. Gray Issues Statement to Effect That Road Oaglit to . ' ' . Be Entirely Free. (Continued From "First Tag-,) provided for the merging of the Rock. Island with the Southern Pa cific, thus giving the latter a 10 per cent haul over its own lines via El Paso even to the middle west as well as to the Atlantic seaboard via New Orleans and Galveston, which, quite naturally, it would be inclined to favor, as far as it could control the traffic, as against the sraort and direct haul through Og den. Such an arrangement the Union Pacific obviously would be interest ed in opposing to the last resort, and might be expected to take all meas ures necessary for the vindication of its rights under the Pacific rail road acts. Interest Is Explained. -The interest and right of the Union Pacific ia to see that the westerly half of the federal railroad system from the Missouri river to the Pacific ocean, of which the Union Pacific is the easterly half, shall perform its share of the duties Imposed by the Pacific railroad acts, which provide fo the operation of said system as 'one connected, con tinuous line,' without discrimina tion of one against the other by whomsoever operated. Now that the supreme court has canceled the lease and enjoined the ownership of the stock of the Central Pacific by the Southern Pacific and decreed the Independence of the Central Pa cific as a competitor, in connection with the Union Pacific and its con nections, of the Southern Pacific, via Its El Paso route, the Union Pacific is directly concerned in the treat ment and disposition of the Central Pacific to the end that the through transcontinental line which together they constitue, shall, In the lan guage of the supreme court, 'be able freely to compete with' the Southern Pacific's southern line, 'to serve the public efficiently and to accomplish the purpose of the legis lation under which it was (they were) constructed.' Line Willing; to Make Purchase. "The Union Pacific is willing to buy the Central Pacific from the Southern Pacific if fair and reason able terms can be agreed upon. But it is not seeking to buy 'the Central Pacific, and It is not necessary for a compliance with the decree of the supreme court that it should. All the Union Pacific will ask is that the Central Pacific be made an in dependent line to be operated as such and that It perform its duties as the Union Pacific is performing its duues under the legislation by which they were both constructed, and that If It is to be. merged into any sryatem, under plans being worked out by the interstate com merce commission, It be merged with the Union Pacific, with which it forms & continuous transconti nental line, competing with all others. It is inconceivable that the commission ever would, even if it could, under the decisions of the supreme court, put it in the power of the Southern Pacific or any other company operating and having larger interest in a rival and com peting line to close this gateway, in the face, so to speak, of the shortest and by far the best and most effi cient transcontinental transporta tion line, and certainly the rights of the Union Pacific,, which is still bound, as Is the Central Pacific under the Pacific railroad acts, are entitled to consideration. Propaganda Is Active. "There is very active propaganda In California for the purpose of working ud public sentiment, with the idei, presumably, of influencing Uie interstate commerce commission to exercise some very doubtful power In the premises, which need not be commented upon now, fur ther than to say that according to reports it has gone beyond the bounds of possibility in represent ing the alleged detrimental effect that would result from carrying out the supreme court dcree. The rates would not be more, or the service lees. If the Central Pacific were made an independent and competing line as ordered by the supreme court, but every reason Just to the contrary, and as for the possibility of the Central Pacific being merged with the Union Pacific, no line- has ever come under the oontrol of the Union Pacific which has not been improved in service and facilities to the public, and there is no reason why the present Instance should constitute an ex-) ception in this respect." Good Fight Is Expected. Again the coast is all set to watch a fight for one of the Pacific rail roads, the Central Pacific this time, with the contestants the Southern and Union Pacific The west has seen them time and again, these battles for control of the Southern, Union or Northern Pa cific, with rail magnates and bank ers allied in groups with a property worth the ransom of kings as the prize. Harriman and Hill played the game to the limit in the old days, when the rules were far more elastic and there was no hampering restraints fjom the interstate com merce commission Qr the more re cent railroad act. It seems one of these colorful incidents of the old days is to come again, for advices from California and Chicago tell of determined rivalry between the Southern and Union Pacifies for control of the Central. Southern Pacific propaganda 1s active in favor of its retention of the Central Pacific property. It is argued that the decision of the su preme court ordering the release of Central Pacific stock by the South urn Pacific was predicates upon the Sherman anti-trnst act of 1899 and the decision took no cognisance of the transportation act of 1920. It is declared the acts are in direct oppo sition to each other and that the de cision should be in the light of the last law rather than the first. Two Railroads Joined. Acting under the transportation act. the interstate commerce com mission issued its order of August 3, 1921, when it made a tentative plan for the consolidation of rail road properties of the country. In this new scheme of things the Southern Pacific and Central Pacific were joined, just as they already were In active operation. In expla nation of its plans the ommission stated It had sought to minimize dis- H T? i . r MJ- (( I y -V, . 1 JULTlIWcTrY iy , jf T a ! VW-K I c T A H VA av An' i' aw raw" Map shows relation of Central Pacific to two roads that want It. Black line Southern Pacific property. Dotted lines Central Pacific lines. Dots and Dashes Union Pacific system. memberments of existing lines and systems.. Southern Paeifio adherents allege that the commission plans hearings throughout the country in connec tion with its groupings as outlined and the enforcement of the court decision, based, it is said, upon the archaic and outgrown act of 1890, will undo the very things the com mission is trying to do under the transportation act of 1920. It is pointed out, moreover, that the two Pacifies have been operated as one for the past 50 years, that development and growth have been as one rather than of two rail sys tems, and that the credit of the Southern Pacific was pledged to pay the debt of the Central Pacific to the government. Oregon Has Direct Interest. Oregon, indeed, has a direct in terest in the disposition of the Cen tral Pacific property. The main line of the Shasta route from the Oregon state line to San Francisco bay is a Central Pacific holding, and in the event the Union Pacific should acquire the Central Pacific lines It would be of interest to speculate upon a possible penetra tion of California from the north as well as east by Union Pacific rails. Given the right to use the Central Pacific line from Hornbroolr to the Golden Gate, the Southern Pacific could scarcely do less than per mit the Union Pacific, to use its line through Oregon from Portland south. - v Aga'n Oregon interests are in volved in the Natron, cut-off, dis continued in 191S when partly com pleted. This is a Central Pacific property, although it was being built in furtherance of a plan to make a new through Southern Pa cific route to California. If the Central Pacific were made an inde pendent line, it is said it would have no inducement to - complete the project, since, of itself, it is a line of minor significance. Natron Cut-off Case Cited. It is urged by Southern Pacific protagonists that Should the Union Pacific obtain the central holdings, it would have no motive to com plete the Natron cut-off either, since it has a line to Ogden of ap proximately the same mileage as that proposed. Value of the Southern Pacific's service to. Oregon fs stressed in the statement of California interests to the Portland Chamber of Commerce, it being said purchases of the sys tem in this state amount to be tween 17,000,000 and $8,000,000 an nually in lumber alone, whereas It would not pay the company to buy much lumber in this state if freigh; on it muBt be paid over Central Pa cific rails to tbe south. ' It is set out, too, that with the Central Pacific in other hands, .the Southern Pacific would be denied its long-haul privilege on freight originating in this state, and it is held probable that good manage ment would dictate the sale of its Oregon lines to some other com pany, either the Northern Pacific, Great Northern or Union Pacific, with consequent loss to Oregon of a competing direct route to the middle west and north central states. In its report of last August the interstate commerce commission con siders the unmergihg of the Central and Southern Pacifies and decides against it, with the recommendation that the Oregon lines remain in pos session of the Southern Pacific-Rock Island system. It is said in the same report that proportion of earning power to in vestment account of each of the proposed national railway groups gives warning that the Southern Pa cific, in order to compete on even terms with its neighbors, must not be too roughly handled. It is held the amputation of the Central Pa cific would be a real loss. It is the conclusion that Southern Pacific competition throughout Oregon and up into Washington should be left undisturbed. DECISION HELD HARMFTTj Public Service Commissioner Corey Issues Statement. SALEM, Or.. June 10. f Special. H. H. Corey, public service commis sioner, declaring that, during their 54 years of common ownership, the Southern Pacific and Central Pa ciflc companies' facilities fcavs be come so interwoven that to sepa rate them Would seriously inter fere with public seryice, today is sued a statement In which he said that the effect of the supreme court's decision of May 29, dissolving- the -common ownership of the two lines, .will be extremely harm ful to western Oregon as well as to all of the Pacific coast states. "Maiiy lines of Southern Pacific ownership will be isolated from the main system," Mr. Corey explained. "The lines of the Southern Pacific in Oregon are separated from those in California, the Central Pacific owning a considerable portion of the main line south of Ashland.' Thus the Southern Pacific lines in Oregon will be isolated, there being no connection between them and the remainder of the Southern Pa cific system. There will be 17 or possibly more new junction points as between railroads of independent operation and tolls accordingly. Thousands of new joint rates will replace the single rates of the one system now in effect" Train service, Mr. Corey added, confined to rails of one ownership as competitive measures, will re sult in disruption, to a large degree, of the present service and he adds that "round-about routes will re place direct routes." "A separation of the lines would result in great financial loss to 1 western Oregon, for the reason that the Southern Pacific purchases in Oregon between $6,000,000 and $7,000,000 worth of Uimber annual ly," he added. "For the 12 months' period March 1, 1920, to February 28, 1921, the Southern Pacific's pur-, chases from Oregon mills amounted to $6,637,000. Under the interstate commerce commission act railroads have been prohibited since 1906 from hauling for each other at free or re duced ratea In all cases where the transportation is over a railroad other than the purchasing line, they must pay either local rates or a di vision of the through rate, if one obtain, representing at least an actual out of pocket expense." RDAO MEETING JULY 10 CONFERENCE TO BE HELD AT CRESCENT CITY. REHEARING MOTION PENDS So Action In Dissolution Can Be Taken Before October. THE OREGONIAN NEWS BU REAU, Washington, D. a, June 10. . .... .......... ..... . v. i ber looking to the dissolution ofl the Southern Pacific-Central Pacific merger, there being a motion for rehearing pending and the su preme court having adjourned for the summer. This explanation was given today when Representative Hawley presented several telegrams from chambers of commerce in west ern Oregon protesting against im mediate action under the decree re cently issued by the supreme court. Professor A. C. Schmltt of the school of finance and business ad ministration of Oregon Agricultural college, Corvallis, conferred with President Harding today with ref erence to the needs of the agricul tural industry. The president lis tened intently to suggestions of methods by which the . government could help the farmer. ' Members of Highway Commis sions of Two States as Well as - Other Officials to Attend. TILLAMOOK, JuneO. (Special.) -The north of the bay counties of California and the Roosevelt Coast Highway association have definitely determined on July 10 next as the date of the big meeting of repre sentatives interested in the Pacific coast highway, which In Oregon is commonly known as the Roosevelt Coast highway. From indications this meeting will be attended by not only large dele gations representing the county courts and commercial bodies of each of the coast counties of the Oregon and northern California dis tricts, but also will be attended by official representatives of the high way commissions of 'both Oregon and California, as well as depart ment engineers representing the United States -bureau of public roads. , The meeting, which has been set for July 10 at Crescent City, -will be called to order by W. E. Miller of Eureka, the president of the North, of the Bay Counties of Cali fornia association. Ben F. Jones of Newport, Or., president of the Roosevelt Memorial Highway asso ciation, will respond for Oregon, to gether with Senator Norblad, Clat sop county director, and John C Kendall of Marshfield, director for Coos county, and many others who will present different phases of the coast highway in Oregon. United States Engineer Pureell of Portland; Herbert Nunn of the. Ore-' gon state highway- commission; R. A. Booth, John Teon, W. A. Barratt, associate members of the Oregon commission, as well as the county courts and commissioners of the counties along the California and Oregon coast, have been invited. Woman .Who Figured in Gould Divorce Case in Trouble Abroad. Business Men Victims. VIENNA, June 10. Genevieve Paddleford, who claims , to be the wife of a wealfhy California oil trader, is under arrest here in con nection with a number of fraudu lent operations in which business men of Lucerne, Paris and Vienna were the victims. Eleven" trunks, containing costly furs and other goods alleged to have been obtained illegally were seized, as well as two silver mounted vases bearing the mark of .the Kitz-Carltcjn hotel. New Horn. - . ! " i LOS ANGELEsTCah, June 10. I Genevieve Paddleford, under ar rest in Vienna, is the wife of Dr. George B. Paddleford, of Holly wood, Cal., former associate of E. L. Doheny, the oil merchant prince, and she is widely known for the sensational part she had in the Gould divorce case, when she was known as Mrs. Ben Teal, and at one time was Mrs. Eleanor McKlnney Toomey of St. PauL Woman Is Separated. She has been separated for mora than a year from Dr. Paddleford and her departure from Los Angeles was followed by a sensational num ber of suits over accounts, created a maze of litigation, which en tangled valuable properties of the Paddlefords here. ' According to the attorney of Dr. Paddleford, Mrs. Paddleford had a sensational' legal history under the name of Mrs. Ben Teal,' which fig ured in several sensational divorce cases. It is charged b? Dr. Paddle ford's attorneys that she married him under an assumed name and that she did not disclose her past life and in answer to this Mrs. Paddleford made denial and as serted that her history had been well known by her latest' husband. -: Accused Born Here. -A few months ago Mrs. Paddle ford, with her daughter, Marie Paddleford, whose real name is Marie Teal, and who .Was reported engaged in grand opera work, sailed from New York for Europe. "Genevieve Paddleford, who was at one time the' wife of the late Ben Teal, member of the pioneer Oregon family of that name, was born in Portland, the daughter of Mr. and Mrs. Albert McKinney. Her grandfather was Captain James M Gilman, retired New England sea captain, who built the Gilman House at the southeast corner of First and Alder streets, a famous hostelry in its day. . Ben Teal Ex-Port lander. Ben Teal first studied law and was admitted to the bar in Port land, but he-removed, to San Fran cisco and later to New Tork, where he gave up the practice of law and became, a producer of plays. He gained fame first through his staging of the play "Ben Hur," on a gigantic- and elaborate scale. It was in Kew York that Mr. Teal met and married Genevieve McKin ney. Ben Teal was a hrother of Joseph Teal of this city. His mother is still living. ' Albert McKinney, father of the present Mrs. Paddlefo-rd, was a real estate operator in Portland for some years. Booklet not a book of building plans, but known, indis putable FACTS about why everyone should own their own home and the personal experiences of others who have found that it pays to own a home. Not only is home ownership profitable in dollars, but it yields even higher values in the added moral stamina and courage that it gives 'the owner, in contentment it gives the family, and in the con fidence with which the, home owner faces the s future. -" . We are not concerned merely in the selling of lumber, lath, shingles, doors, mouldings, etc, but in really and truly helping you to realize what you want in the way of a home at the greatest economy, so that you may fully appreciate. 1 ' -a new name and trademark for the following old and well known products made by the companies men tioned herein: Lumber, Lath, Mould ings, Shingles, Doors, Sash, Glass Frames, etc. The same name and trademark and the same policy of highest quality and unexcelled serv ice are employed in the conduct of business by: OREGON DOOR COMPANY Sash, Doors, Glass Frames and1 Sanded Finish. Phone Sellwood 62. Foot of Spokane Avenue, Portland EAST SIDE BOX COMPANY , . Boxes and Box Shooka. . Sellwood 597 I . Foot of Spokane Avenue, Portland East Side Mill & Lumber Company LUMBER LATH SHINGLES MOULDINGS "Build It With Lumber." FT. OF SPOKANE AVE. SELLWOOD 597 PORTLAND, OREGON now is weathering: a financial storm by owing about 125.000 in addition to the bonds. Mr. Coats would have all bond holders cancel their bonds, thus making a donation of the amount paid for them. Then the city would vote bonds for J2B.00O. pay off the debts Against the fcuisjing and be come owner of a building worth ahniit S100.000. . No provision is made in this scheme for the American iiegion itself, through whose efforts the building was erected. . Basket Picnic to Be Held. OREGON CITT, Or., June 10. (Special.) The . local council of Knights of Columbus will hold a basket picnic at Chautauqua park Sunday, June 18. Among the sports scheduled for the event are base ball games between married men and bachelor knights and a series of foot races. RAILS LAID TO BUXTON 17 TO BE GRADUATED Christian Brothers' Commence ment to Be Held Tomorrow. Commencement exercises will be held in Christian Brothers college tomorrow night. A featare of the exercises will be a morality playlet "Conscience." The cast includes Henry McDowell, James Tempi James McAllister, J. J. Nledermeyer and Henry S. Gagnon. There are 18 in the class! John W. Brennan, Robert Buckley. John Cottardi, Ralph H. Dernbach, Philip Galluzso, Henry S. Gagnon, Leo E. Hammel, Frederick J. Hoerner, John D. Keating, William M. Langan, James D. McAllister; Henry P. Temple. Henry C. McDowell, Joseph J. Niedermeyer, Aurel P. Popia, Jerome J. Slavich and Mark A. Sweeney. - Tracklaying on Portland, Astoria & Pacific Progressing. BUXTON. Or., June 10. (Special.) Track laying on the Portland, As toria & Pacific was completed from Wilkesboro to this village yesterday and Buxton now has two railroads. the other being - the Tillamook branch of the Southern Pacific. The track laying crew numbers 90 men and they lay about half a mile a day. Two ballasting trains follow. hauling the gravel or sand from the cut of the Spokane, Portland & Se attle, across the peninsula neaV St. Johns. i , Vernonia is about 12 mijes from here, so rails should reach that city in four weeks, and it is expected trains from there to Portland will be running some time in July. PUPILS PLAN CONCERT Demonstration of Dunning Sys tem to Be Given. A demonstration of the Dunning system. of improved music study will be given next Wednesday night, j June 14, at the Baker theater by s the pupils of Kate Dell Marden and Mrs. E. Gladys Nash. A programme will be given in which pupils will demonstrate the Dunning methods.- Tiny beginners will transpose melodies- into any major or minor key asked for by members of the audience and tests will be given In rhythm and eai training.. - One 7-year-old pupil will modu late, an achievement that is general ly considered possible only among adult players, , . LEGION BUILDING SOUGHT Councilman Offers Plan for- City to Become Owner. VANCOUVER. Wash., June 10. (Special.) E. V. Coats, councilman pt the third ward in this city, is soonsor lor the idea of the city of Vancouver taking over the Amer ican Legion building, which Just M:A attlOO. Credit term: LT GemiM Diamonds GUARANTEED .Our Diamonds are dia- .fcnrtive ta aery Brilliancy, Mo watte, perfect cat. Sent prepaid for your Fra sawMbestM. mm Chars Aastuai PBECES ME DOWR Oar HUMCNSt MlY INtt MWB tor oar Chain of StorM. la lemd Intr eitiM Ukd W Itm Mut Orriw HoomcobMM to maxe ww wnr VMM- than Hnsl! conearna. tfmitvttisfied. Utatty Bds AeoaeM patimtrnm. Money bask i rmr. AU.H&tmQB, bono jota Kinarm Kir AtM ThoM am over -1.000 illat tioas of EHunaods. Watche, ri WstcbM, Fault, Mesh Ban. Siliarware. ate., at m 4noW Priaaa. Catakw exDlaina everything. Send for it today. Wifet Watch $ 1 a Week Watch and biaeetat daap are 18-k SoHd White Gotd. 7-jwel movement, guaranteed. Soadal at US. Other fancy shapes-Octagon. Toanean, Cashiaa-as tew aa W. tm, ctm T.nM., Tffcf m DRUKEhwe- S trial. CREDIT EWaSs to M. stall 4rMtr BROS&CCl'is i iOFT Wage lifted by Bend Mills. BEND, Or., June 10. (Special. ) Bend mills today announced a wage increase of 25 cents a day. to take effect June 16. The announcement was made following a meeting with the conference committee of the Loyal Legion of Loggers and Lum bermen. A letter to employes said that while the lumber industry was hit harder than almost any other, the country is now slowly getting back to normal and with the gradual strengthening in lumber the com panies feel warranted in makihsr -the increase. - Approximately 1500 men will be affected. IT Bend Moose Want Orphan Home. BEND. Or., June 10. (Special.) Bend Moose are initiating a move ment to obtainthe location in this vicinity of a home for the orphaned children of members of the order similar to that now maintained at be given in connection with the rose Mooseheart, I'd. show. Queen to Be Selected. CLATSKAN1B, Or., June 10. (Special.) ' The Columbia county rose show held under the auspices of the Presbyterian Ladies' Aid of Clatskanie, will be June 24. A queen will be selected to preside over the activities of the day from some town in Columbia county, excluding Clatskanie. 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