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TWO SECTIONS
12 PAGES J
tIXTV-SKVKXTH.YKAlt .NO. 2j: j
HAUI, OUWiOX, SLW'DAY 3IOKXIXG, JAMAItV 27, 1918
PRICE .VIVE CEXTS.
FIRST SECTION
8 Pages' ,
mmm
FIRES BURN
WAR PLANTS
LOSS HUGE
.Destruction in Shipyards at
' Newark, N. J., and Baltf
" more Few Hours Apart
. Aggregates $2,000,000
PLOT TO HURT WAR
ACTIVITIES INDICATED
Flames Discovered on Muni
tions Ship Put Out -
Guards Strengthened -
. NEW YORK; Jan. 26. -Indications
i of a widespread plot to cripple the
war activities of the United Stale
were seen today In a series of fires
iti- shipyards,' on munition ships, in
' war plants 'and storage buildings at
i various points along the Atlantic sea
board and farther .' inland. Nearly
all of them wer j of distinctly su
spicious origin. , ' -w',,-
ears that the flames nay havo
been set by enemy aliens vere given
strength .by the fact that they start
. ed within a few. hour at widely sep
arated points almost a week to a day
after Edward N. Hurley, chali nan
of the United States shipping boar!.
declared that the government ' had
. been given Authoritative -warning of
.a uerman pioi to appiy ine tourcn
to plants of a kinds, especlay ship
yards, which are producing imple
ments oT war. ' - '
Mr. Hurley ordered the trebling of
soldier and police: guards at -all war
pants ijind, In sdme cases this pre
caution resulted in preventing veu
, more serious 16sses. It was announ
ced from Washington today that tnis
- warning ' was issued because of
."crank letter' had not been properly
investigated, put government agents
in various parts of the country were
inclined to believe that it was well
found. Guards were again strength
tied to make even more difficult tho
depredations of German agents.
Disastrous fires started ml a, few
hoars apart in shipyards at Newark,
X. J. and, Baltimore. The losses will
fgregate 12.000,000.
' ; Fires were discovered on loaded
munition ships at two Atlantic ports
today, but they were extinguished h
f4re serious damage had been, done.
'FFICIALS ANMICE
TTVW W W
mm-
J. V .,
BE
IS FORMED OF
RRY JUICE FIRMS
Pheasant Fruit Juice Compan y and Northwest Fruit Prod
i ucts Company . Combine to Take Over Production and
j Marketing of Output oi Wi de Territory Officers Elect
ed and Articles Are FUed Capitalization Is $400,000
Continued on pae 6.1
Announcement was made yesterday of the consolidation of
the Pheasant Fruit Juice company, of Salem and the North ws
Fruit: Products company of Salem and Olympia, Wash- Articles f
incorporation were filed in the office of State Corporation Com
missioner Schulderman and show a capitalization of $400,000. Gen
eral offices are to be located in Salem.
j (The new company takes over the production and the market
ing oi practically the entire loganberry juice industry of the Pacific
northwest, and will be known as the Pheasant Northwest Products
company., t Both the original companies have ! placed thir markets
nig aiMi auverxismg. into me nanus oi me new corporation, aituougn
trie parent, companiss control the entire management of the new
it j S ' . m . s i A
company uirougn tnc election or tne following omeers:
j President, It. S. Gile; vice president, Frank-T. Schmidt; sec
retary, Frederick AV. Schmidt ; assistant secretary, J. A. Wilson ;
treasurer, VYV T. Jenks; general sales manager, O. L.-Ferris.
t .The consolidation of. the two; bijgj companies is probably the
most important deal lever effecteU iu Salem- Its significance is
shown in the authoritative statement that in 1917 the total sales of
all loganberry juice companies in the field was in excess of $1,000,
000 and that at least 90 per cent' of this amount of moiieyresulted
from sales made outside the Pacific northwest. !
1 Is noon to Willamette v alley. -
PACKERS HAD
CLOSEST EYE
ON CONGRESS
Five Big Firms Financed In
spired Flood of Telegrams
Opposing Borland Resolu
tion Js Testimony
AD VANCE INFORMATION
RECEIVED ON ACTION
) :H S. Gile, president of the new
company, commenting on the deal,
said:
"The consolidation" means much
more to the Willamette valley than
appears on the surface. While last
year there were only about 2,000
acres W loganberry, vines' in the
whole state, I look to see this acre-,
age more than doubledn .1HJ8. We
have outstanding contracts with
many growers.-and others will soon
see that to plant loganberry vine
yard wilt yield .them a much larger
return in dollars and. cents than any
other fruit, or-al most any other kind
of, crop that can be oWained from
the soil of the Willamette valley.
which is particularly adapted to the
growing of loganberries. The cul
ture of loganberries staTted In Call
fornia, but the berries thtre are not
a good commercially as the berry
grown in Oregon, and for that rea
son the berries of, California, have
not made the nice pes that ours have
made and probably never will.
WAR DECLARED
ON KALEPINES
BY
COSSACKS
Newly Formed Congress Pass
es Resolution by Unani
. . moa Vote '
Defeat of Congressman Who
Fought for Investigation
to Be Bared
FACTS MADE PDBL
RELAIP'T0:;0MR
lADEDR, W.J.EERR
Capital Journal Refuses to Publish Statement Showing
Recommendations, of Spec! al Committee and Proof That
) Presidency of Kansas Stat e Agricultural College Re-
. mains Unfilled Faculty Member Defends His Chief
Through- a statement issued by Profejor Elwin T. Reed, editor
of bulletins at Oregon; Agricultural college. Tire Statesman today
publishes the facts relative to , proffers made to IVesijdent W. J.
Kerr to accept the presidency of Kansas State Agricultural college.
The statement shows that, acting upon the recommendation of
a specially appointed committee. The boardfof administration of the
Kansas institution called Dr. Kerr into conference, he having been
recommended to the board as a man who stood "head and shoulders
above the other men at this convention.'' To say nothing of
statements made subsequent to the eonfererice that the bosition had
WASHINGTON; Jan. 26. -Contl- 0ffered to Dr. Kerr, the fact stands that no man has yet been
.1J nnnrto An ihn atttt11 Of ' ....... . . ... . ... .
v V..v fill , nnvitin l.nl.l ..V-i H I I... nntinrm F
nTn towi?d legislation fo flf.cted to fill the position now held temporarily by an acti
ry into the livestock and fieiai. - - t ' .-
industry ; "taken from -.' the (Professor Reed," a week agooffered his statement to Tin
(Continued on page 2)
El
CAGGERMTON
is the foundation upon which many stores are trying to build
up their business. ' ' I
imag
fmk
inary
From Fictitious
Reductions
Values
constitutes at least ninety per weni of present day adver
tising... . : 1 ; i
It is an everyday occurence to see such statements as
"t3J00 values for $2:19 " whenn investigation will prove
that the' article was made to retail at $2.00 at most and is
$ poor value at that price. j
ANY MERCHANT WHO WILL MISREPRESENT IN
HIS AVERTISINO WILL MISREPRESENT IN HIS
STORE- . - I.;-;r.;
Merchants often seek to defend such practices by say
ing that they are compelled to resort to such means on ac
count of the action of their competitors. '
We believe that a majority of the fair minded people in
every community appreciate the advantages of a strictly
one-price store where profits are figured on the spot cash
basis and where there is only ONE PRICE FOR EVERY
BODY. Present market conditions have tempted many mer
chants to buy inferior goods to keep the prices down, but
there is a point in the downgrade of prices below which
cheapness ceases to be economy. f
Reliable merchandise has always been considered of su
preme importance in our buying and OUR LOW PRICES
ARE THE RESULT ,OF ECONOMICAL BUSINESS METH
ODS AND THE FACT THAT WE ARE SATISFIED WITH
SEASONABLE PROFITS AND HAVE NO LOSSES FROM
"BAD ACCOUNTS." - V
Our, store closes at ft:30 every evening except
o'clock. . , . . - , , .
Saturday
18 OFFICERS ARRESTED
Cossacks Fired With Enthus
iasm Bolsheviki Issues
Statement
PETROGRAD. Jan. 25. An offi
cial, statement issued today by the
ilolshev'.ki government aaya that on
Wednesday the congress of Con-
sacks from the front waa.inaugurat
ed at the inilitary station of Kam-
;nky and paesel unaulmoucly a res
olution declaring war on General
Ka led ineti and relegating all author
- , ii mM T nil n n n n i rnrnpv . t nr tiia
The cfficial statement which MKackerg alone in the office when he
to
'the
sera out by .wireless addressed
all' and under the caption of
revolution on the Don' begins:
On Wednesday at the military
station of Kamensky a ernsress of
Cossacks van inaugurated.
"Representatives were , present
from 121 regiments, five batteries
and two reserve regiments. There
were present also at the congress all
of the participants in the conference
i of laboring Cossack Dom which was
instituted at Voronezh on January
19. General ; Kaledines gave, orders
for the dispersal of, the congress and
the rest of the organircrs: The con
gress unanimously passed a resolu
tion declaring war upon Kaledines
and relegating to itself all authority
on the Don. r A military revolution
committee wa.elH-ted and detach
ments have been sent out for the
purpose of rapturing the stations of
Likhat nd Zvbrro, , Eighteen offi
ce a of superiour rank of the mili
tary hare, teen, arrested. ,
"Puring th operations fcr th cap
ture df the military statljn at Zver
o, the divisional staff, headed by
Colonel Mikahaloff, fledr and after
denouncing , the failure of the- at
tempt to arrest the general staff and
the finding of the note at headquar
ter of General Kaledines telling the
railway's had. been placed under spe
cial control, i the statement contin
ues . . N
"On the following day a noUbteJ
metting, took place at Kam?nky.
The Cossacks are fired with enthus
iasm and are striving to arrest Kale
dines with their own bands. The
array of the revolution, tbo army of
the workmen's and peasants and of
the, government's of the peoples
commissaries. Is greeting awakening
Cossack : Dom and redouble- Its en
ergy with the object of destroying
bourgeoise Russia on the Don and
in leading to victory -the great rev
olution." The statenient: 10 signed by "An
tdoo(f People's commissary"' (assis
tant minister of war here.)
dential - reports
congrcssm
an inquiry
packing
secret files of big packing concerns.
were read today into Ihe records of
the federal trade jcommission's m
packing investigation-
In addition to the continued re
cital of the efforts made by the
packers to forestall affirmative- ac
tion by congress in 1916 on the Bor
land resolution for an 'nquiry, the
com mission" was given "further inai
cation of the ramifications of the
packers' financial control, which was
said by Francis J. Heney, special
counsel, to extend to the street 'rail
way lines of Kansas City, to. banks
throughout the country and to the
tin industry. Mr. Heney said fur
then evidence along this line would
be offered next week.
Politics To Be Showp.
' Alleged political retribution visit.
ed on congressmen inimical to thei
packers' interests, will he one of the
major subjects taken up next week.
according to Mr. Heney, who an
nounced that he . would .offer evi
dence designed to show that one rep
resentative was defeated with the aid
of the packers after he made a fight
for an investigation of their business.
"Insidious methods of endeavoring
to Influence congressmen through
business for their law firms and by
appealing to their political welfare
will be developed, Mr. Heney told the
commission. After it had been dis
closed today that In 1914 R. C. Me
Manus of counsel for T3wift and com
pany, made a report. to the company
giving, a-resume of a complaint filed
with the commission and which was
confidential tinder the commission's
rule, notices were posted in the corn-
mission building that hereafter pas
tes from heads o' department wiii
he required for all persons, even, eni
ployes, srho enter the building out
side of working hours. When the
McManus report was- received Mr.
Heney protested the practice of leav
ing the office doors unlocked . of
fered a chance for "unfortunate"
happenings and said he bad several.
times found an attorney for the
ital. Journal for publication.
It has not appeared in that news
lTo a-t f hoi f llA aHiv T P a "Tsxivwmal -uroto o 4v a. V c
j, a v a.iacsi . v . uitvt va m. in v vui iiai n auia KIT v in
one siae oi tne casei air. iteea bsks.
The Cap-
Professor Reed has used his own initiative in. making his state
ment public- He says that if it were known to Dr. Kerr or to any
one in immediate touch With him that he is giving the statement to
the newspaper it would be ordered withheld. Thishe declares, ; is
because of President Kerr's scrupulous sense of professional honor
and his willingness to take abuse himself rather than embarass the'
people who, could make his case absolutely clear to the public, if
he felt justified in using their assistance; . T
AUSTRIA TRYING
SEPARATE PEACE
WITH RUSSIANS
Negotiations at Brest-Utorsk
to Be Resumed, Report
' v Is Current
EARLY PEACE DMAT,DED
returned there,
It appeared from the evidence to
day that the packers received ad
vanced information of a postpone
ment of action on the Borland reso
lution -by the house judiciary sub
committee.
(Continued on Page U)
BOMB PROOFS
ARE 1VRECKED
AND 10 KILLED
Ending of War Before Spring
Urged by German Social
ist Leader v
Seven Others Injured; Ten
Are Buried Beneath Hary
' Structures
EXPLOSION IS ACCIDENT
(fany Employes Away During
Noon Hour; HeavyLoss ,
of Life Averted
Willamette 4U' Beats
r University of Oregon
liltJG ENE. Or.. Jan. 26. In a hard
fought basketball name here tonight
Willamette University of Salem de
feated, toe, University of Oregon five
by a score of 27 to 19.
NEWPORT, R I.; Jan. 26. Three
bomb proofs at the, naval torpedo
station .here .were wrecked lat to
day by an explosion of fulminate of
mercury, killing at least ten civilian
employes and In luring seven others,
one probably fatally. Ten others
were buried .in the rtUns of , the
heavily concreted structures and lit
tle hope was exjVessed that many
of them would he removed .alive.
Captain Edward L. Beach, command
ant of the station, said none of the
survivors was able to give an account
of wat had.happened but there was
no Hbt. he; asserted, that -the ex
plosion wi accidental.
Late tonight a rescue party heard
voices inthe ruins of ;JCo. 1 .bomb
proof, one of the wrecked structures.
A pipe was sank to' the spot and It
(Bff The Associated Prt$)
Peace advocates are again Insistent
In the central empires, hard upon tho
German chancellor's nevf, declaration
of Germany's warlike purposes. A
report Is current that the BolsheviUJ
have decided to continue the Brest
itovsk. peace negotiations tnd anoth
er, quite unvemiea, mat Austria, is
prepared to make a separate peace
with Russia. '
. In Germany, Phlllpp Scheldemann,
the oeiallst leader, in his remarks
following Chancellor von Hertllng's
speech pleaded for peace before
spring. .
Regarding Russia, Scheldemann is
sued & warning that the military
leaders of the imperial government
would be deposed if they did not
bring about peace with her.
He insisted that there was ground
for a general peace on the basis of
the program laid, down by President
Wilson on eleven points o which an
agreement was easily possible. He
was an uncompromising ae Chancel
lor von Hertling, however, as regards
Alsace-Lorraine, declaring this ter
ritory must remain German.
Scheidemann's words comprise
perhaps the most radical utterance
that has yet ''come from the majority
of moderate Socialists in the reich
stag. ' Foreign press comment on the
speech of Chancellor von Hertling,
however, points out that there is as
yet no sign of acknowledgement on
the part'of the German government
of any responsibility to parliament
tttat to all appearances the military
party is still In full control.
Tho Bolsheviki report an organi
zation of Cossacks from the front
into a congress which has .declared
war on General ' Kaledines, ' driven
him and his staff from their bead
quarters and announces its purpoaa
of hunting htm down. "
In the military situation there have
been no developments of note. Ar
tillery duels at Isolated points, ot
rasional raids and plentiful air
plane reconnoitering are reported. '
Mrs. Tilaria Thomas Dies
at Home of .Her Daughter
TURNER. : Or. Jan. 26. Mts.
Thomas, 80 years old, dirt today at
the home' of her dnaghter, Mrs. F.A
Wood; near here. The fa-njeral will
be held at the home Monday at 12
o'clock. Rev. Mr. Mikey conducting,
the services. ' Interment will be In
City View cemetery.' Balem,' aboui. 2
Kansaa Publication Oted.
Mr. Reed showed The Statesman
a copy of the Kansas Industrialist of
port of the authorization of appoint
raent of the Kansas college alumni
committee by Mrs. Calvin, as sug
gested by the board of adlmnlstra
tion, and A copy of the Issue of Jan-
vary 9, 1918, reporting the appoint
ment of Dean Willard as acting pres
ie'ent. Jn the comment of the ap
pointment of the senior member of
the faculty as acting president, the
Industrialist makes the' statement
that, "For a number of years he wa
director of the station, and is ao
vice-director."
Mr. Reed la convinced, be sayr,
from every direct evidence that has
cO me from the Washington convec
tion and from Kansas hat Presi
dent Kerr was the one man that the
Kansas college community desired to
have as the successor to Dr. Waters.
He was Dr. Waters' own choice; the
choice of the. college people as ex
pressed .in the college paper ; he was
given more attention in the Kansaa
papers than all the other men that
were considered for the positioa. "
Boards Imputation Shady. .
"All this slander of President Kerr
by a few newspapers' of Oregon'Recd
declares "Is based on one or two
newspaper stories in 'Whch he de
nies that President Kerr was offered
the Kansas position. That he should
repudiate the advances .made to
President Kerr, even to the extent
of denying that the board had ever
considered him for the position. In
spite of the fact that the committee
of alumni, appointed , at his sugges
tion, made in the presence of his
fellow board members, nad officially
circulated score cards at the conven
tion, with PresidenfKerr's name at
the header the list, is quite consist
ent with certain other events in th
history of this board. A political
board, drawing a salary of 13500' for
each member, it has bad I loch &f
its guiding spirit since Its organiza
tion, and this is not the first time Jt
Lb as sacrificed an educator in the in
terest of politics. In 1913 It out
i aged the educational world of the
Middle West by discharging ruthless
ly without warning and without evi
dence of cause, the president of tha
great Emporia Normal school, with
t-everal members of the faculty.'
These are facts. Reed claims, that
the public of Oregon ought to know
as well as the people of Kansas. This
is his Justification for- giving them
out; and since he learned them from
other sources than the O..A. C. board
of regents or President Kerr, be feeis
that he is not compromising them by
making the facts known.
Reed Takes Initiative. ' ' '
Accompanying t- Professor . Reed's
statement as mailed to The Capita
Jorunal was the following, letter, to
the editor :.' I - ' -
"Mr. Charles H. Fisher, Editor
Capitol Journal, v
w'Salem, Oregon. 1
' "Dear Sir;,,! am sending you the
enclosed letter for publication In the
Journal in the interest of whae seems
to me fair play. I have a conviction
that President Kerr, through: Van
over-sensitive regard for professional
courtesy and personal confidences U
allowing himself to be needlessly
abused. If It were known to him,
or anyone in immediate touch with
him. that I am sending this , letter,
it would be ordered . withheld.
"I believe, however, that 1 have
some rlrjiis as an Individual and a
fhrmer as well as. in .my capacity of
editor of the bulletins of this institu
tion. - ,.: ; -. -s.-: .; . , . . .
"I am therefore asking' you that
you print the letter, which Is an
honest expression of -what I belie e
to be the 'true situation, from) my
reading of tne papers and my con-
Mft
Monday and . Wednesday
Wheatless, One Whcatle:;
Meal Every Day Ordered
, by Food Administration
and Proclamation
rJCf TTT4Tf rfi Tf np
-wUiuuiiiriiuii iu DL
REDUCED 30 PEIt CENT
Victory Bread" Adfbted
readers only oyitcm in bitect Tomorrow
Stop' Waste Is Appeal
Compulsion Held in Reserve
Chief Features of Nevr"Fool
Hytem in Effect Tomorrow.'
Baker's bread of mixed
flours, with substitption of
other cereals for wheat until
20 per cent substitution Is
reached. ,
Sale of equal amount cf sub
'stitute flour for every pound
;o -wheat flour.
Sale of only 70 per' cent of
tmount of wheat flour, sold last !
. year. " ;. '. '
Two wheatless' days a week
Monday and Wednesday i
and one wheatless meal each
"day. '..-. I
- One meatless day a week
Tuesdayand one meatless
meal a day.
- Manufacturers asked to use
substitute flours.
Wheat millers required to
produce one barrel of flour of,
196 pounds from 2M pounds
,of wheat making 74 per cent
flour, v ' '. " ' "
Hotels and restaurants re
quired to serve new victory
bread. '
, (Continued onPage 7j
WASHINGTON. Jan. 26. Tho
American people will go en a war
bread diet Monday as a $art of a
war rationing -system prescribed to
night by President Wilson and the
food" administration. "Victory
bread," the food administration calls
it. ' .
The reduced rations are asked for
the purpose of creating a larger ex
port surplus of if ood for, the allie3.
Curtailment of consumption will be
accomplished largely through volun
tary effort, butferce will be em
ployed ; wherever permitted, 'under
the-food rontrol act. , ; .
The rationing sj stem, as presented
by the president in a proclamation
and hy Food Administrator Hoover
In a list, of regulations, forms the
food administration's 191 food-conservation
program, of which tho
chief features are; ,
Xew Orders Given. ....
A baker's" bread of mixed flours.
beginning Monday with -a five per
cent substitution of other cereals for
wheat until a 20 per cent tustitu
tldn Is reached February 24.
. Sale by jretallers to householdera
?f an equal amount of substitute
lours for very pound "of wheat
flour - purchased at the time tho
wheat flour is purchased.
Sale by miller to .wholesalers and
wholesalers to' retailers of only 70
per cent of the amount of wheat
flour sold. last year. ' : i u
Two wheatless days a week Mon
day and Wednesday and one wheat
less meal a day. . i,
One meatless day a week Tuf
dav inrl on meatmen m(-a1 a Asv.
Two pArkless days a week Tues
day and. Saturday.
, Manufacturers' of macaroni, spa
ghetti. iioodleir -crackers and break
fast foods, pie, cake and pastry will
be: permitted to bur only seventy
per" cent of their last year's purrha3-
es and are asked to perform a pa
triotic 'service by using substitute
flour. . -' k- " i
FlourlwlU be sold through the reg
ular channels and in s:i--h a manner
kthat each community will receive !t3
equivalent share. .
The food 'administration will pur
chase for the army and for the allies,
as announced recently, thirty per
cent of the flour output and out of
his Mors will fill emergency require
ments If stocks run low In any part
or the country. ,r
' Victory UHrend to Be Served.
Wheat miliars are rcfpilrcd to pr--duce,
,on barrl of riour of 196
pounds from . 264 jonnd of wheat,
which represents a 74 pr cent flo'i?.
No patent or special flours to in?
manufactured although whole wheat
flour mar be made as usual. t
Hotels and. restaufanta will bj''