CITY EDITION
If All Here and I? All True
THE WEATHER Tonight and Wednes
day, rain ; southwesterly winds. :
Minimum temperatures:
Portland : , 6t New Orleans. . . 34
Pocatello ....... 28 New York ..,. 34
Los Angeles w... 60 : St Paul ........ -l
CITY EDITION
Buy Foods Cheaper
The Market Basket, printed each day
on the market page, tells you what Is best
to buy and when. This feature is printed
exclusively in The Journal especially for
the busy housewife. - -
;riT VTV MO KO En""! " 8-ont Clam Matter
V JLt. A1A. lJ. MA. postoffice. PortUnd. Oregon
PORTLAND, OREGON,
.EVENING, DECEMBER
920. EIGHTEEN
PRICE TWO CENTS
ON TRAIN AND New
STAN OB MV.iCsVt
28, 1
ED E. KIDDLE
State'. Highway Commissioner
Passes at Island City Home
- After Brief Illness; Was For
mer President of Flour Mill.
5 La .Grande, Dec, 28. Edward E.
. Kiddle, state highway commissioner,
died at his Island City home, three
rniles from La Grande, atM o'clock
this morning after a two-hours' ill
ness from acute Indigestion. ,
? Kiddle, before-taking the highway of
fice last summer, retired from the presi
dency of the Pioneer Flouring MJ1I com
pany, of which he and his brother were
the chief factors. . .
. He returned Just before Christmas
from Washington, where he went In the
Interest of the McArthur bill with Gov
ernor Oleott. State Highway Engineer
Herbert Nunn and I E. i Bean of Eu-
1 gene. -
. Kiddle hadalways been active in busi
ness, fraternal-rand political circles. He
wait a Republican and state senator in
1916.
Kiddle was born July 15, 1862. in War
ren,. 111. In 1884 he was married to Miss
Emma Wall injf at Hamilton, Mo. He
.heeded the call of the West In 1886, when
,he came to Oregon and located in Union
county, -where he has resided continu
ously since. , - -- .
His first location in this county was
in Union, where he entered the milling
business. Later he moved to. Island City
where he became associated with W. G.
Hunter and Charles Good nough under
. the firm name of the Pioneer Flouring
Mill .company, which institution survives
and was. under his direct control until
last year, when he retired from active
business and devoted his time entirely
-" ( Concluded on Paee Four, Column Two)
T NEED II. S.,
: -By Louise' Bryant
-(Special Correspondent of VtoIhtenutional New
JWrtee)
i (Special Badio DUpatch)
(OrTriiht. 1920, by International Newi Serriee)
Moscow, Dec. 28. George Tchitch
erin, Russian soviet commissary fpr
foreign affairs, has just granted me
' an exclusive interview for the Inter
national News Service regarding the
decision of the United States gov
ernment to -deport Ludwig C A. K.
Martens, soviet representative in
New York. M. Tchitcherin said:
"The decision of - the United States
. government to deport the soviet repre
sentative, especially in view of the
motivation of that decision, namely, that
Nr. Martens, being an agent of the
soviet government, belongs to an organi
sation seeking by force and violence to
"overthrow the United States govern
ment, seems to be the product of an in
comprehensible, panicky state of mind
which will appear to impartial observers
as a puzzling psychological curiosity. .
"It would be unkind towards America
- to believe that the deefsion represents
" the opinion of the American people, es
pecially of the American workingmen,
who have given so many proofs of their
'sympathy toward soviet Russia. ' ;
'We" also refuse to believe that it
represents the viewpoint ef American
business interests, whose many negotia
tions with, us demonstrate their great
'desire. to reestablish relations with Rus
sia. ' ' .
"However, the decision to deport our'
representative precludes the possibility
of any and all business with America
for the time being.- ' .
"We have Instructed our representa
tive to caacel all pending deals until a
(Concluded on Pace Two, Column Fire)
Farmer Sold Wheat
For $68.50; as Bread
It Brings $391.33
:M Washington, Dec 28, A load of Okla
homa wheat which netted the grower
$68.50, coat the consumer $391.33 when it
was baked into bread, according to -Sena-tor
Arthur Capper of Kansas, who cited
several glaring instances of exorbitant
profits accruMng to middlemen as op
posed to producer today.
Another Oklahoma farmer, the senator
pointed out. sent a green hide to a St
Louis commission house and -received
$2.10. for it. But the freight cost $1.69
and the dray age 50c, sq the farmer owed
the commission house 9c
Consumers are paying 25 to 42c a
pound for steaks cut from cattle which
bring the grower 6 cents a pound. Sen
ator Capper said, and 40 cents a' pound
. for prk chops from hogs for which
the grower gets 9c, the senator said.
Holders of Interim
Certificates Will
- 5 Meet This, Evening
'' Holders of interim certificates and
creditor of Morris Brothers generally
" have called a mass meeting to be held
this evening In the Short Story room at
Central library at 8 o'clock. --,
At this time it, is expeeted that an or-
ganization of these creditors will be per;
fected and steps taken to present a
united front in negotiations for the pro
tection of their common interest. This
meeting has been called by Dr. J. D.
Dubach, a creditor. .1
DON
VCT
Marjorie Brown
NIECE of President Wil
son who becomes bride
of former Portland man
tonight after romantic wooing.
4 rf.:gwww-:w;:w--;qy
:h- X. '
CALIFORNIA MAY
BAR ALL ALIENS
By M. D. Tracy ,
San Francisco, Dec. 28. (U. P.)
Sweeping legislation which may go
so far as to extend the present anti'
alien land law of California, whereby
Japanese are forbidden from holding
land in this state, so as to affect all
aliens" 4nstead of only Orientals, is
being planned for introduction at
the biennial- session of the state leg
islature, which will open next Tues
day at . Sacramento, it was learned
today, .
Chief points for the anti-alien pro
gram planned for introduction into the
legislature. prominent anti-Japanese
leaders indicated, will be : .
Amendment of the present California
law forbidding Japanese holding land by
title, lease, through corporations or by
guardianship, so as to strengthen it
against attack in the courts.
Passage of a measure which will fa
cilitate searching Investigations to de
termine whether land titles are hold in
good faith or by "dummies,", represent
ing Japanese..
Possible extension of the entire anti
Japanese program . to' all aliens, in or
der to fortify it against attack either
through diplomatic -channels or In the
courts on the ground of discrimination.
Should . the latter - plan be carried to
execution large interests might be af
fected. -Dutch and British companies
hold valuable oil interests in this state,
while there are extensive holdings cen
tered in other, foreign sources. Of late,
there has been some agitation against
the holding -of oil property by, non
Americans and particularly against ex
tension of such holdings.
Retail Trade Gains,
Wheat Crop Moving,
Says Federal Report
San Francisco. Dec. 28. fl N. S.l A
distinct note of optimism was sounded
in the December report, of the Federal
Reserve ba"nk on general business and
agricultural conditions in the . Twelfth
federal reserve district made public to
day by John Perrin, chairman of the
board and federal 'reserve agent. ;
"The retail tfartte of this district, as
reflected in the value of sales of 26 rep
resentative department stores in the
largest cities, was per cent greater
than in November, lsfs, although 9.2 per
cent less in November 'than in October,
1920," says the report.
"Colleciions of these sfbres appear to
be improving, for 25 per' cent reported
them as 'excellent' In November, 1920,
as compared with 6 per cerT in October,
1920.
"The large wheat crop of the district,
100,000,000 bushels, appeared Wj Decem
ber 1 to be moving to market, more rap
Idly than last year's crop was on that
date.
"In the three seaboard markets of the
Pacific Northwest, Portland, Tacoma
and Seattle, receipts of wheat for the
season to . December 1 were about 20
per cent greater than receipts during
the same period of 1919, although the
1920 crop in that territory ig over
4 per cent in excess of the 1919 crop.
WHIDES
SMOKE VEIL
Burning Forests and Exploding
Mines Indicate That D'Annun
zio's Attempt to Defy Italy Is
lSoon to Meet Tragic End.
By Camlllo Cianafarra
Rome, Dec. 28. (U. P.) Wreath
ed in smoke from burning forests
and exploding mines, Fiume today
neared surrender to Italian soldiers.
Premier Giolitti was informed by Gen
eral Caviglia, commanding the regulars,
that he could expect occupation of the
city this afternoon. He reported prog
ress of his troops impeded by D'Annun
sio'sv tactics of burning bridges and
streets and by sniping, but said .his men
had occupied several important centers
in the city.
Rector Venturio of the D'Annunzio
forces and Mayor Gigante of Fiume
were granted a" conference with General
(Concluded on Paee Three, Column One)
A romance which had its begin
ning when Benjamin King of Port
land' rescued the daughters of Wood
row Wilson from a Villa raid in
Chihuahua, Mexico, will culminate In
Washington tonight with the mar
riage of King and Miss Marjorie
Brown, daughter of Colonel and Mrs.
Edward Brown of Washington and
Atlanta, and niece of President Wil
son. King; who ia well known here, having
made Portland his headquarters much of
the time for the last 10 years, was one of
a party of Portland timber cruisers in
Mexico during the early days of Pancho
Villa .when that bandit started out to es
tablish a reputation as the "scourge of
the' North." Woodrow Wilson's daugh
ters were visiting an hacienda near Ma
dero. King's headquarters were at the
hacienda and he and the daughters of
the then president-elect became fast
friends.' When a breathless messenger
came racing up on horseback to warn
of the apprt ach of a Villa band of raid
ers the usual 'panic resulted. The Mexi
cans fled pell melL King kept a cool
head and, in true Richard Harding Davis
form, provided horses and escort with
which he was able to conduct the Wilson
girls safely out of the danger zone and
across the border into the United States.
CALLED AT WHITE HOUSE
Later King was a frequent visitor at
the White House, and Portland friends
heard of him as a possible fiance of
Miss .Margaret Wilson. These rumors
apparently had their base in the ro
mance between the. young Oregon tim
ber cruiser and the president's niece.
Miss Marjorie Brown, invitations for
whose wedding were received in . Port
land last week. Miss Brown was one
of the bridesmaids of Miss Jessie Wil
son when she was .married to Francis
B. Sayre,. and Miss Margaret Wilson
is to be one of Miss Brown's brides
maids at the elaborate wedding which
is to toe held in the Browns' Washing
ton home, ope of the handsomest in the
capital. 1
KATITE OF WISCONSIN ' ,
King is a native of Wisconsin, but
has spent much of his time on the Pacific-
coast, mostly in the employ of
Portland timber cruising firms. During
the war he was with the spruce pro
duction division at Vancouver barracks
and Toledo, Or., rising from a private
to a captaincy. At the conclusion of
the war he went with the G. Amsinck
(Concluded on Pace Three, Column Four)
Still Owner Fined; .
Jail Term Escaped
Marshfield, Ori, Dec. 28. What Is
claimed by . officers, to .be the largest
local moonshine manufacturing outfit
was seized and broken up at the George
Geddes ranch -hear Marshfield. Fifteen
quarts of whiskey and large quantities
of mash were Ttound." Geddes was fined
1350 and sentenced to 'six months in
jail. The' sentence was suspended dur
ing good behavior And the fine paid.
This is the fourth big still seized In
this locality in 10 days.
WILSON S NIECE TO
WED PORTLAND BOY
Orca, Drawing
35 Feet, Sails
With Record
Wheat Cargo
Astoria, Dec. 28. With one of the
largest and most valuable cargoes
ever taken from the Pacific Coast,
the big British steamer Orca, which
loaded at the port terminals here,
crossed out Monday afternoon at 2
o'clock. Despite the fact that she
drew 35 feet of water, she glided
smoothly out ko sea without the least
trouble, of anv kind. .
The Orca is e)n route to Havre, France,
with 12.000 trfns or 448,000 bushels of
wheat, valued aV$806.400. Of her cargo
336,000 bushels consists of bulk and
112,000 bushels of sacked wheat. In ad
dition to her cargo the big vessel took
on here 5000 tons of ' coal, water and
stores.
The Orca is the largest cargo carrier
that ever visited the Pacific coast She
arrived here December 10. Nearly a week
was required to line the vessel, more
than 150,000 feet of lumber being used
for that purpose. She was loaded in 10
days, a dispatch she could have received
at but few ports in the world. During
her stay in Astoria the Orca disbursed
approximately 60,000 for t labor and
supplies.
TACOMA'S 30-FOOT CHANNEL.
REQUEST IS TURNED DOWN
Washington. Dec. 28. (WASHING
TON BUREAU OF THE JOURNAL)
The chief of army engineers has re
ported adversely on proposed deepening
of the city waterway at Tacoma, Wash.,
and this report has been approved by
Secretary Baker and forwarded to con
gress. Tacoma interests sought to in
crease the depth of the channel north
of Eleventh street in that city to 30
feet, which they said would bring that
part of the waterway into use for the
largest vessels now. engaged in business
in Puget Sound. The engineers report
that they do not believe the estimated
cost of $60,001 would be justified, as all
ships in sound waters can use the chan
nel at present at low water, and little
commerce would be convenienced by the
greater depth.
S. P. AGREES TO
Officially .recalling the "ouster"
order against-the " -GrealCorthern
and S., P.- & S. railroads, J. P.
O'Brien! president of Northern Pa
cific Terminal company, sent a tele
gram this morning to Edgar E.
Clark, chairman of the interstate
commerce , commission,, stating that
the order would be rescinded until
action had been taken by the com
mission. The telegram was sent as
a result of telegraphic communica
tion with the board of directors of
the terminal company. It advised
the commission that the two roads
in question had been informed of
the action allowing them the use of
the station pending the decision of
the interstate commerce, commission.
Similar, but unofficial, announcement
had been made by William Sproule, pres
ident of the Southern Pacific company.
Notice of this, as far as the Southern
Pacific was concerned, was telegraphed
to the commission Monday afternoon by
Sproule.
SATS EFFICIENCY AFFECTED
The Southern Pacific will continue to
favor separate terminals for the Hill
and Harriman lines on a basis of public
service, according to Sproule. who ex
pressed the firmest conviction that the
G: N. and S.. P. & S. should return to
their Hoyt street station.
"At first blush everyone favors a un
ion terminal," said Sproule, "but the
more they think of it the less they fa
vor It."
Questioned as to the probable course
( Concluded on Paee Thnw, Column Fire)
Girl Says Man on .
Trial Took Her to
Gangsters' ShacK
San Francisco, Dec. 28. (U. P.)
Having told her story for the third time,
Jessie Montgomery was to take the wit
ness stand at the opening of today's ses
sion of the trial of James Carey, for
cross-examination. Carey is the third
gangster to face the court on a charge
of assaulting Miss Montgomery at a
Shack on Howard street ThaiiKsgiving
morning. Two others await trial.
Miss Montgomery gave her evidence on
direct examination late yesterday. She
said it was Carey who took her and
Jean Stanley in an automobile to the
Strollers' cafe on Ninth street and then
to the Howard street shack, where the
alleged assaults took place.
Miss Montgomery's mother and father,
Mr. and Mrs. Lee Montgomery of Beno,
Nev Salvation Army workers, were
spectators in court and heard their
daughter testify.
Storm Warnings at
Mouth of Columbia
Eiver Kept Flying
While the center of the storm which
was raging off Sitka, Alaska, has moved
eastward and the winds along the coast
have moderated, storm warnings which
were lifted for the mouth of the Colum
bia river Monday morjiing were replaced
on the possibility that another storm
may be following the Monday blow.
The wind was only eight miles an
hour at North Head this morning, but
the uncertainty over another storm kept
the storm .warnings .flying. Rain and
southwesterly winds were promised for
Portland today.
CANCEL
ORDER
WALTERS IS
TO BE HANGED
Sentence Pronounced on Slayer
of -Patrolman Jerome Palmer
by Judge Tuckerj Prisoner,
Overcome, is Led Away.
In the presence of a crowd that
packed the courtroom this after
noon, Husted A. Walters, slayer of
Patrolman Jerome Palmer, was sen
tenced by Circuit Judge Tucker to
be hanged Thursday, February 10.
Walters received the sentence with a
gasp and slumped back Into his chair
trom the standing posture he had as
sumed when Judge Tucker began de
livering the final edict. ' He was led
away through the judge's chambers by
deputy sheriffs' to avoid the crowd,
which broke into pandemonium after
the judge had sent the prisoner away.
The court's words were in sending to
the gallows the first murderer convicted
of first degree crime since the restora
tion o capital punishment-
"Husted A. Walters, convicted in the
first degree, are hereby remanded to the
custody of the sheriff of Multnomah
county and by him to be; delivered to
the warden of the' state- penitentiary
within 20 days, thereafter to be con
fined within tUfc walls of the peniten
tiary until Thursday, February 10, when
you will pay the penalty of your crime
.by being hanged by the neck until you
are dead, and may the infinite Father
'of us all have mercy on your soul."
The judge was almost overcome by
emotion while he was delivering this
sentence. His well known views in
opposition to capital punishment making
the ordeal extremely painful to him.
ASKED BY 0LC0TT
Aid of the State Chamber of Com
merce in obtaining better facilities
at Crater Lake National park was
asked by Governor Oleott in an ad
dress af a luncheon gathering of
delegates to the anual meeting of the
state organization in the Chamber
of Commerce at noon today.-
"Frankly I'm up against it- when it
comes to Crater Lake," said Oleott, who
said that he would appoint a Commit
tee of three men from his office to co
operate with a committee from the
state chamber to obtain betterment of
conditions at the Southern resort.
Capital cannot be "attracted to Oregon
unless the ,capital that is here is mak
ing a satisfactory earning, according to
Fred G. Buchtel, chairman of the public
service commission, who addressed the
luncheon gathering on the policy of the
commission for the cpmrng year.
R. A. Booth, chairman of the state
highway commission, said tnat within
the next decade expenditures for public
roads in the state would probably
amount to $100,000,000. -He appealed to
the public not to think that 'the road
building was solely hteinterest of the
highway commission;.
. Dr. La Violette, president of. the Wash
ington State Chamber of Commerce,
pleaded for greater cooperation between
Oregon and Washington in questions of
national importance. .
Immediately after the meeting was
called to order Charles Hall of Marsh
field, president of the organization, gave
his annual address outlining the pur
poses and aims of the state chamber.
This was followed by a report of the
year's expenditures by the treasurer. '
Appointment of a resolutions commit
tee followed. F. C. : Knapp was chosen
as chairman of the committee and other
members selected were Otto Mielke, F.
S. Sanborne of Astoria, C; L. Wheeler of
St. Helens and Leslie Butler of Hood
River. This committee will report to the
meeting at 3 :30 o'clock Wednesday
afternoon. '
W. D. B. Dodson, secretary of the
Portland Chamber of Commerce, deliv
ered an address on, "City and State." ap
pealing to the- representatives of the
state to support Portland in her mari
time, industrialj and 'state development
work. ! '
Alfred A. Ay a, secretary of the North
west Rivers and Harbors congress, gave
an address on the work of the congress
which convened in Portland this fall. :
Laying of Gable at
Miami Was Halted
By Wilson's Order
Washington. Dec. 28. (L N. S.) In
terference with the laying of the West
ern Union cable , connection in Miami,
Fla., was upon direct orders from Presi
dent Wilson, according to answers filed
today In the supreme court of the Dis
trict of Columbia, to rules issued against
Secretary of State Colby, Secretary of
War Baker and Secretary of the Navy
Daniels, to enjoin them from interfer
ing with the laying of the cable.
The ' cabinet officer admit Interfer
ence in their 'answers. They charge
that the cable connection sought would
establish a British monopoly and the
action was taken under direct; orders
from the president.'
Pershing Will Lead.
Inaugural Parade
:: Washington. Dec 28. -General John
J. - Pershing will ride at the head of the
Harding inaugural parade on March 4
as grand marshal. General Pershing
has not only consented to lead the pa
rade, but has also accepted the chair
manship of the military . BUbcomixsfee.
CRATER LAKE A D
ETHER DGE
SPENDS NIGHT
ON JAIL COT
Flight of Former Head of Morris
Bros.' Bond House Checked in
Minneapolis Held for Port
land Officers; Had $10,000.
Minneapolis, Minn., Dec. 28. A
telegram received by the Minneapolis
police department 15, minutes before
the east bound Coast train on the
Milwaukee railroad left here for Chi
cago resulted in the arrest late Mon
day afternoon of John X. Etheridge,
alleged absconding- president of the
Morris Brothers bond house of Port
land, Or.
Etheridge and his wife had enjoyed a
brief spin about the city in a taxicab
during the two hours ther train stopped
here and .were about Ui board It at the
Union station whenJwo detectives took
them into custody on descriptions fur
nished the local police by Sheriff Hurl
hurt of Portland.
ETHERIDGE IJT JAIL
Both were taken to police headquar
ters, where they were questioned by J.
F. Walker, superintendent of police.
Etheridge was held while his wife was
allowed to go to a downtown hotel.
Etheridge said he knew nothing of the
failure of. Morris Brothers, brokers at
Portland, until reporters told him.
' "I haven't a cent but what belongs to
me," he said.
Etheridge offered to return to Port
land alone if permitted to, do so. He
said he had nothing -to fear. He said he
would rot Tight extradition."
Currency totalling $10,000 and bond
coupons valued at $75,000 were found
on Etheridge's ' person, Minneapolis po
lice said last night.' Both Etheridge
and his w-ife wore diamonds.
Mrs. Etheridge, speaking for herself
and husband, gave a statement" to re
porters at her room in a local hotel last
night
"Dispatches from . Portland eaying
that my ' accounts are short $25,000 are
nothing but the worst kind of lies." she
said.
"FBAME-rP," SAYS WIFE
"The report that my husband abscond
ed with $99,000 is also false. How could
he get away with that much money
when all books and reports of the com
pany stood rigid investigation when we
left. It's the Portland newspapers and
jealous competitors who couldn't stand
to 'see my husband prosper that are
back of this. It's a frame-up,"
When questioned as to where they
were going, Mrs. Etheridge said she did
not know. Asked if she intended to re-
(Concluded on Pi Two. Column Eight)
RIOTS IN 2 DAYS
By Daniel O'Connell
Dublin, Dec. 28. tt-(f. N. S.)
Twelve persons have been killed and
19 wounded in Irish violence since
Christmas, acording to official fig
ures revealed here today. One of the
civilians killed was a woman.
Cupid Leads Both
Youth and Age to
Altar at Vancouver
Vancouver, Wash., Dec. 28. Four
minors, three boys and one girl, were
Earried in Vancouver, Monday.; The
edding of Arthur P. Holraan, 1 Port
nd, and Miss Leona Ratliff,. 17-year-old
daughter of Mrs. Hattie L. Ratliff,
310 St- Johns street, Portland, was wit
nessed by William Holman of 933 Pearce
street, who gave his consent to the mar
riage of his young son.
Emory J. Hess, 19, married Miss Zelda
M. Hall, 18, of Cascade Locks; The
mother of Hess, who lives at 108 West
Eighth street, Vancouver,' witnessed the
ceremony. ,
Raymond Bierman, 20-year-old son of
Mrs. Emma Bierman of Oregon City,
was married to Miss Lillian Lavener, 18,
also of Oregon City.
Romance does not seem to be con
fined to youth alone, however, for Clar
ence Gonyo. 50. and Mrs. Delia Cannon,
50. of Hillsboro, Or., were married here
Monday.
Although the number of minors secur
ing licenses here is on the increase each
month, all records in licenses Issued to
couples who : have passed the 60-year
mark have been broken in recent months.
Trapper .Missing,
Following Injury
By Fall Off Cliff
Albany, Or., Dec 28. Somewhere in
the Cascade mountains in the vicinity of
Fish lake, the body of a trapper known
as "Sweeney is believed to lie, froxen
in the snow. A searching party made
up of Cascadia residents is searching
for the missing trapper.
Sweeney has not been seen for 10
days. Evidence that he had fallen down
a 20 foot cliff was found, but at the
bottom of -the precipice his trail was
lost. H was known to be en route from
I Fish lake to his cabin at Cascadia, and
his abandoned snowshoes were found
where he is believed to have been over
come with exhaustion. The point where
his trail disappeared under fresh snow
is 60 miles east of Albany. '
12 KILLED IN IRISH
Bandit Forces
Woman to'Give
Him Diamond
Wedding Rings
Mr. and Mrs. Robert M. Cleveland,
448 Eleventh street, wei held up at
10 o'clock Monday' night at Eleventh
and College streets by three armed
highwaymen, who escaped with
$2500 in diamonds, bond coupons
and a few dollars in change, after
they had roughly handled Mrs.
Cleveland in removing her wedding
rings, which stuck to her fingers.
Cleveland is the owner of the North
west Bank building cigar store and the
Selling building cigar store. Monday
night he was going home with his wife
when they were accosted by the three
armed robbers.
"STICK 'EM UP QUICK"
"Stick 'em up and stick 'em up quick,"
was the order from one of the men to
Cleveland, while one of the other two
ordered Mrs. Cleveland to "take off
them rings."
The rings stuck to Mrs. Cleveland s
finger. Muttering something about rfcr
trying to "stall" him, one of the men
took her by the arm and tried to snatch
the rings from her finger, in spue of
the 'fact that she had a sprained ankle,
hurt as she alighted from the oar.
Failing in this he tried . to extract
the stone. Finally Mrs. Cleveland got
them off and gave them to the bandit.
The holdup men got from Cleveland
his watch and chain, $4 in cash and
$150 in Canadian bond coupons.
STRIPPED OF JEWELRY
Everything of value was taken except
Mrs. Cleveland's wrist watch which is
set in diamonds. Cleveland told the po
lice the three men were all about 25
years old. Information furnished by a
man who, saw men watching the cigar
store early in the night leads the po
lice to believe that the men had Cleve
land "spotted."
The jewelry taken by the robbers In
cludes two solitaire diamond rings, one
ring set with large diamonds surround
ed by seven smaller ones, a small watch,
two wedding rings. 5
FAILURE DUE TO
LACK OF CONTROL
The Morris Brothers, Inc.. disaster
would have beert averted, according
to John A. Keating, president of the
Lumbermens Trust company, had
the establishment been "under the
control of the state banking depart
ment. If the firm, .said Keating, had been
under proper control a check would have
been had upon the-funds received for
interim certificates and such a failure
would not have been possible. While
Interihi certificates are perfectly legiti
mate he believes that some legislation
should be passed tb govern the issuing
of interim receipts. .
"When Morris Brothers, under the
guise of selling Edmonton bonds, placed
82.066, 000 worth of interim receipts with
their clients, they simply floated their
unsecured paper to that amount." said
Mr. Keating, "At bottom, their interim
receipts were certificates of deposit.
UO STATE 8CPER V1SIOX
"Morris Brothers were not governed
by anv banking law ; they were not ex
amined or supervised by any state
banking commissioner or his organiza
tion. They carried on a banking busi
ness of magnitude, without control al
any kind.
"It is strange that so archaic a thing
should be permitted in this day and gen
eration. The establishment of supervi
sion of banks by public authority was
one of the greatest successes of the last
century. If Morris Brothers had been
under proper control of banking statute
and supervisory authority and examin
ers, a check would have been had upon
their use of the money, and disaster
would not have resulted.
"The remedy Is the passage of a law
by the legislature requiring individuals
or corporations issuing Ipterim receipts
to comply with either the national or
the state banking act"
BILL PROPOSES INSPECTION
Close scrutiny of the dealings of bond
houses Issuing interim certificates will
be provided in a bill to be submitted by
a member of the Multnomah county dele
gation at the coming session of the state
legislature. The act proposes mat an
bond houses issuing such certificates be
placed under supervision of the state su
perintendent of banks,, and that interim
certificates be secured by collateral or
bonds placed in escrow. ,
Interim certificates are issued as a
receipt for funds paid for bonds pending
the delivery of the securities to the pur
chaser. The majority of Portland bond
houses set aside a fund sufficient to
cover all outstanding certificates.' Fail
ure to comply with this custom was one
of the chief causes of the collapse of
Morris Brothers, Inc.
The' bin also w ill require that publicity
be given to prices received for bonds is
sued by political units of the state, and
that data relative to the sale of bond is
sues be contained in affidavits to be lied
with the state superintendent of . banks
by officials of the communities Issuing
them and by the bond house negotiating
the purchase.
This bill has the indorsement of the
local, association of bond houses and Is
approved by leading bankers, according
to Robert E. Smith, president of the
Title & Trust company. Smith also-" sug
gested that legislation be enacted calling
for closer supervision of the business of
firms selling stock of private corpora
tions. Mayor BakefcBack'
On Job, Kefreshed
Mayor Baker formally resumed the
reins of city government at a brief spe
cial session of the city council this morn
ing. Informing his peers that, afuy'his
vacation In California, he felt primed for
anything that might come before the
council. - ,
ETHERIDGE'S .
WIFE MAY
BE INVOLVED
District Attorney, Who Is Inves
tigating Her Connectio'n With
Failure of Morris Bond House,
Says Her Arrest May. Follow.
Mrs. John L. Etheridge j springs.'
into the limelight today as a prob
able codefendant j with John ' L.
Etheridge, her husband, j in! the
charges growing out of the; wreck- ;
age of Morris Brothers, Inc, j It is
known that District Attorney Evans
has investigated her connection with
the institution and is seriously con
sidering her arrest upon her arrival
in Portland with Etheridge. .
Etheridge purchased the business -Of :
Morris Brothers from Fred S. Morris,
and, according to the statement of the
latter, the transaction was closed and he
stepped out of both act I ye and flnanf-lal
affiliation with the business! at that
time. He states, however, that he con
tinued to keep himself informed as to
what Etheridge was doing, and from
time to time went to him with counsel
and advice.' M i
MRS. ETHERIDGE HELD STOCK
Early during the current year I Ethe
ridge, Mrs. Ethrldge. Forbes 'Pratt and
one or two others incorporated a new
11,000.000 corporation under the name of
Morris Brothers. Incorporated, i It is un
derstood that Mrs. Etheridge subscribed
to practically all of the stock of this
new company Issued, the best informa
tion available being that she; held in
name on the books 'of the corporation'
approximately 1498,000, par value of the
stock, while Etheridge himself held but
a fewhares ; Pratt and the others, all
employes, one or two shares each, only
enough to comply with the statute as lo
corporate organisation. j
There is no record, so far I obtained,
thab Mrs. Etheridge or any of the oth
ers ever paid anything of value to the
corporation for the ; stock for 1 which
she had subscribed, i . i J
BONDS SENT BACK -
On the other hand, she is charged 6n
the books with the purchase of 1100.000
of bonds, with no visible record Of pay
ment therefor so far discovered.) It ap
pears that out of this transaction cam ;
the $75,000 block of bonds shipped back
from Tacoma to Fred S. Morris, as well
as the additional package of 125.000 re
covered by the district attorney from
the Etheridge safe deposit bpx yester
day, i -
In addition to these transactions It
has been discovered that Mrs. I Etheridge
has an ovedraft of money taken from
the company .amounting td approxi
mately 833,000. while Etheridge has an
overdraft of 899,000, j , i.
Seemingly, too. the stock subscribed
by Mrs. Etheridge, plus that held by
Etheridge, Prstt and the other few em
ployes, constituted all of the outstanding
capital stock of the company with the
exception of some 860,000 par . value of
preferred stock sold by general sale to
outside and scattered individuals. The
total capital was $500,000 of common and
$500,000 of preferred stork. I . :
WORKED WITH HISBAND;
Taking the facts all together they
seem now to have developed i would ap
pear that Mrs. Etheridge has been work
ing shoulder to shoulder with her hus
band since his organisation of the new
corporation, and it is known that all of
the circumstances are being carefully in
vestigated by the d!trlct attorney, who
Intends to broaden the scope of his In
quiry to take the activities pot only of
Mrs. Etheridge and her husband,! but of
all those associated with the corpora
tion's conduct. 1 I
The district attorney . is also much
interested in the $75,000 of bonds or
bond coupons which were found In the
possession of Etheridge when . he, was
taken into custody at Minneapolis.
EXPLAINS flO.eoe FOUND) j
Fred Morris explains the) $11,000 In
cash in Etheridge's possession : by say- -ing
that this sum was loaned td Eth
eridge by him -prior-4o his departure
from Portland. j j . ' .
Etheridge had purchased , his ' Irving
ton home of Morris, this consideration
reported being $40,000. Morris states
that all of the purchase price had not -been
paid by Etheridge. He says that
on the basis of the statement j of the'
assets and liabilities of the Company -furnished
him by Etheridge, he had be- .
lieved the company to be -solvent. - and '.
had therefore loaned Etheridge the $10.- -000
when Etheridge bad retransferred .
the Irvtngton place to him! as trustee
for the company, which Morjrts then in- '
tended to take over and rehabilitate.
Bonds of $50,000 posted by W. D. Whit
comb as temporary receiver for the
bankrupt bond house, were approved
this morning by Federal, Judge Wolver
ton upon motion of Attorney! A. B- Win
free. -- j j
WHITCO.MB TAKES CHARGE; ;
Whitcomb was thereupon commis-,
sloned by the court to assume control of .
the property at once, , He Is hot to touch
the bonding end of the business, as the
directors desire to have the court ap
point an experienced banker as perma
nent receiver within a short time.
Whitcomb is to keep the bonding ,
bouse open during banking hours and
permit customers to reach their safety
deposit" boxes. He is also! to receive
checks, bonds and other valuables which
arrive by mall or ejtpress, and to pay.
such Incidental expenses asj arise from
day -to day. -
It has developed that Fred S.'Morria .
plans to step completely out from under
the wreck of the firm of Morris- Bros.. ,
Inc All" of the property and assets of
the corporation turned over to him by ,
Etheridge, including .both real and per-,
eonal property, will be transferred to
the custody of Receiver Whftcoma as
soon as may be, and Morris will cease
any connection with the case, according
to his plsns. ' , . -j 1
REPRESENTS JUMBLE, '
J The "actual status of the concern, from
the viewpoint .; of definite 1. assets -and
liabilities, ia as much In the air today
(Concluded on Ft Two. Coiuma One)