Tb Statesman receives the leased wire report of the Asso ciated Press; the .(rea'est and most reliable press association la tb world. DAILY EDITION mm MMMWaMPaMBMMMMaMMaMaM am 'mm 'mm-.KUiimi Yn"1u.xn on .. m SAI.K.M. UHKliOX, S.VmtlMV MOltMMi, XOVKMHKlt ISt. HUH. PRICK FIVE CEXTS H'ADOO QUITS RESIGNATION IS ACCEPTED Affectionate Letters Pass Be tween Wilson and Son-in-Law as Treasury Head De cides to Quit RECOUPING PERSONAL FORTUNE IS OBJECT Burdens Held by Democratic Atlas Likely to Be Di vided in Future WASHINGTON. Nov. 22. William ClbbsTElcAdoo, secretary of the treas ury, director general of railroads and often discussed as one of the presi dential possibilities of 1920. has re signed his office to return to private business. . . President Wilson has accepted his resignation Mr. McAdoo will rive up the treasury portfolio as soon as a successor has been selected, lie wished to lay down his work as di rector general of railroads by Janu ary I. but will remain if the presi dent has not then choseu a successor. Upon the secretary of the treasury, whoever he may be. will devolve the task of financing the nation through the transition period or war to peace, which probably will include at least two more liberty loans and possibly a further revision of the system of war taxation.- Letters between President Wilson and Mr. McAdoo, made public today, with the announcement of the resig nation, give Mr. McAdoo' reasons for leaving the cabinet solely as a ne cessity for replenishing his personal fortune. and express the president's deep regret at losing his son-in-law from hit official family. " The following leters were made public with the announcement: Mr. McAdoo's letter of resignation, dated November 14. follows; "Dear Mr. President: "Now1, that an armietlco has been signed and peaee Is assured. I feel at liberty to advise yon of my desire to return, as soon as possible, to pri vate life. "I have been conscious for some time of the necessity for this step, but of1 course, I could not consider It while the country was at war. "For almost six years I! have worked incessantly under the pres sure of great responsibilities. Their exactions have drawn? heavily upon my strength. The inadequate com pensation allowed by law to cabinet officers (as you know I receive no compensation as director general of railroads, and the very burdensome cost of living In Washington have so depleted my personal resources that I am obliged to reckon with the facts of the situation. "I do not wish to convey the Im pression that there is any actual im pairment of my. health, because such Is not the fact. As a result of long overwork I need a reasonable period of rest to replenish my energy. Bnt more than. this I must, for the sake of ray family, get back to private life, to retrieve my personal fortune. "I cannot secure the required rest aor the oooortunlty to look after my 1 long-neglected private affairs unless I am relieved of my present respon slbllltles . "I am anxious to have my retire ment effected with the least possible Inconvenience to yourself and to the Public service, but It would. I tnins b wis to accent mr resignation now as secretary of the treasury, to be come effective upon the appointment and qualification of my successor so . that he mar have the opportunity ana advantage of narticiDattng promptly in the forulatlon of the policies that hould govern the future work of the treasury. 1 would suggest that my resignation as director " general of railroads-become effective January JllJ. or upon the appointment or my successor. I hone von will understand. My "tear Mr. President, that I will per mit nothing but the most Imperious umands to force my withdrawal trom the public service. Always. I hal cherish the greatest honor of y eareer the opportunity you have o generously given me to serve the country under your leadership In these epochal times. "Affectionately yours, "W. O. McAdoo." The president's letter of accept ance, dated November 21. follows: "My Dear Mr. Secretary: "I was not unprepared for your letter of the 14th because yoii had W(re than once, of course, discussed with me the circumstances which hare long made it a serious persona! acrlTice for you to remain in orfice. I know that only your high and exact ing sense of duty had kept you there "ntil the immediate tasks of war would be over. Uut I am none the less distressed. 1 shall not allow our Intimate personal relations to de ?K me ' the pleasure of saying Dt In, my Judgement the country ' (Continued on page six) $500,000,00(HS CUT MDE FROM GREAT TAX BILL Luxury . Taxes Are Decided on for a Paring by Sen ate Finance Body TOBACCO ALSO LOWER Chewing Gum Rate Goes Down; Photo Films, Candies in List f WASHINGTON. Nor. 22. Reduc tions aggregating 1500.000.000 in the yield from the new war revenue bill were made today- by the senate finance committee In revising the measure downward to the 16 000 -000.000 total for 1919 proposed by Secretary McAdoo. The decrease was confined principally to the to bacco, luxury, semi-luxury and oth er special and excise schedules. Among the more important deri sions today were elimination of the luxury scneauie proposed in the bourse -.bill, levying 20 per cent on ctfsHy articles of clothing: and other mercnanaise and estimated to raise $184,795,000. elimination of the house tax of two cents a gallon dn gasoline, estimated to yield 140.000. 000; reduction from 10 to 5 tier eent or about $200,000,000 in revenue In rates on many articles classed as seml-luxurles and a reduction of about one half in the house rates on tobacco, a cut of about $54,000,000 in revenue. The committee deferred decision on the plan, suggested by Secretary McAdoo and specifically presented yesterday by Chairman Simmons, for Incorporating in the measure specific rates for 1920 taxation, by which the total revenue yield would be limited to $4,000,000,000. Republican mem bers still vigorously oppose legisla tion for 1920 and the committee de cided to pass that question tempor arily. Tomorrow it will resume re vision of the miscellaneous taxes with a view to cutting off another $500,000,000 necessary to reduce the whole to six bill ton dollars. Considering the excise or semi-luxury schedules today the committee reduced from 10-to 5 per cent the house rates on the following articles: Piano players, phonographs, photo graphic films, candy, portable elec tric fans, thermos bottles, slot ma chines and toilet soaps and powders. The chewing gum rate was cut from 4 to 3 per cent: that on hunting and bowle knives from 10 to 10 per cent; on firearms and ammunition. from 25 to 10 per cent, and on sculpture. paintings and statuary from 10 to 5 per cent. Ten per cent taxes Imposed in te house bill on bathing suits and photo graphs or reproductions were entire ly eliminated and that of 10 per cent on fur and wool articles made appli cable to fur manufacturers only. In me excise scneauie no change was made in the 5 per cent sales tax on automobiles, tires and accessories nor In the 10 per cent rate on sport (Continued on page 2). John Ryan and William ' Potter, Quit Air Work WASHINGTON. Nov. 22. Resig nation of John Ryan, second assist ant secretary of war and director of air service, and of William C. Potter, his chief assistant was announced to day, by Secretary Baker. Both Mr. Ryan and Mr. Potter desire to re turn to their private business as quleklr as possible, but Mr. Raker said they had consented to remain at their posts until the rush of air craft demobilization Is over and la ter to give the department the ben efit of their experience whenever necessary. After the retirement of Mr. Ryan and Mr. Potter, the offices they now hold will not be filled Immediately If at all. It appears unnecessary to officials now that a director should he named In Mr. Ryan's place. There is no longer a production problem to be handled as the war is over ana operation :. is naturally a military function. It was said, that pending reorganization of the army and war densrtment on a peace hasis. recom mendalions for which will be laid be fore MnrrM next month by Secre tary Raker. It is not possible to ar range for. the permanent aircraft es tablishment of the army. Mr. Ryan, who was president of the Anaconda. CoDer company, vas called un hv President Wilson to take rharre of the aircraft production las Mar after charges of delay and ef flelency In the program had been aired In the senate. Mr. Ryan re signed his private connections to be come chairman oX the aircraft ooaru and director of production. Three months later he was mado second assistant secretary of war and director of air service. Mr. PotteV. who Is a banker, mln In g engineer, railroad man and for mer general manager of the Amer ican Smelting and Refining company, was called to assist Mr. Ryan In the task of pottinc the aircraft product Ion program into fall Bwing. s I 1 "- SALEM MAY BE PUT ON AIR ROUTE War Department Official Asks Landing Place for Proposed Flight From Sac ramento to Seattle. FAIR GROUNDS ARE FOUND TOO LIMITED Smooth Tract of Forty Acres Is Needed Where Planes Come to Earth Airplane mail service between Sa lem and other coast cities is very likely to be an established fact in the future of a local landing field can be found. . Following receipt of a telegram from Lieutenant Col. Emmons sta tioned at Mather field. Sacramento. Calif., asking for information con cerning a suitable landing place near tne city for the government's pro posed flight from Sacramento to Se attle, Mayor Keyes wired him sug gesting the Btate fair grounds. A reply yesterday said the race track would not be broad enough, so the matter was Immediately looked into fnrtner and several possible loca tions were found, chief among them one on the Turner road. Specifications for the ground are given in the following telegram sent Wednesday by Lieutenant Colonel Emmons: The war department Is contem plating an airplane flight from Sac ramento to Seattle. Please advise immediately whether there is a land ing place in your vicinity of at least 40 acres of level land free from all ground and overhead obstructions and in sub condition that an auto mobile can travel over any part of it at a speed of 20 miles an hour. If affirmative please mail map at once showing Its exact location." It Is surmised by Mayor Keyes from the telegram and a letter also sent him that the government Is planning to utilize the planes now on the California aviation fields for carrying swift mail. If they should stop In Salem It would be an added though mall sent by this means is establishing fast communication with other points along the route. Al though mall sent by tis means is costly. It is a great saving over tele grams and long distance telephone service and messages may be trans mitted in a few hours time. The great difficulty encountered In looking for the field Is In finding one that is smooth enough. Almost all of the large tracts of land near Salem are plowed up and are In a condition which would not permit an automobile to travel 20 miles an hour over them. Ths, however, could be remedied. Berkeley Will Have Fast Team Against Oregomans BERKELEY, Cal.. Nov. 22. Fot the first time sine It discarded the Rugby game and returned to Ameri can football, the University of Call fornia will have a team, none of whose members had unlearned the British style when it lines up tomor row for it annual game against the University of Oregon. For three years the Otegonlans have ridden rough shod over the Californlans on the gridiron owing to the latter's unfamiliarity with the game. The last of the Rugby players went out with last year's California graduating class.. Last year the score was 21 to 0 in favor of the Otegonlans. while the year previous they rolled up 39 points to Califor nia's blank. With a team grounded in the fun damentals of the American game the Californlans. not only expert to score and to make a close contest, bnt are cherishing hopes of recording a vic tory. These hopes are based on the fact that, man for man. the Califor nlans outweigh the Northwestern and for the reason that they count on knowing as much football. The Californlans have shown an admirable defense against line plays but are considered vulnerable against open attack. Under tho cir cumstances it is expected that Ore gon will resort to end funs and for ward passes. The gate" receipt will be donated to war work. K I F,CK 1 1 EFKK V X I K fr'KATKIK CHICAGO, Nov. 22 "Augle" Kleckhefer, world's champion three cushion bllllardist, successfully de fended his title tonight when be de feated . Robert Cannefax. former champion, in teir three-night match, 150 to 106. in 147 innings. Kleck hefer now has defended the title suc cessfully five times since he won the championship last February. Canne fax won tonight s closing frame. 54 to SO, in sixty five Innings, but he was far behind as a result of the two preceding; blocks. Senator Returns From Washington For Brief Period United States Senator McNary re turned to Salem shortly before 10 o'clock last night over the Southern Pariiic. and will be. here an indefi nite period, depending upon the dis patch with which Fred W. Mulkey qualifies for the short term senator ship and resigns, according to his an nouncement prior to the election. His resignation is to be followed by the re-appointment of Senator Mc Nary to complete tn,e short term prior to beginning the long term to which he was elected on Novem ber 3. Senator McNary was worn ont with many days of travel upon his arrival last night and requested to be spared an interview of length. The senator commented, however, on the fact Republicans all over the count! y are elated at the results of the election and the prospect of Republican lead ership during the period of recon struction. "The outlook Is one of optimism. to say the least." said Senator Mc Nary. "With the Republican party holding the bigger end in confess then will be an opportunity for some needed le&Ulation and prospects are growing better for a Republican ad ministration after the election of 1920." Senntor McNary said he was sur prised to hear yesterday afternoon of the resignation of Secietary Mc Adoo and thinks the actual purpose of the cabinet member In quitting official life at this time may not be clearly seen." The senator still carries a lame hand and suffers some other physical Inconveniences due to an automo bile accident in Washington several weeks ago. FREIGHT LINE ON RIVER MAY COME TO LIFE Renewal of -Water Transpor tation Between Salem and Portland Urged FINANCING IS PROBLEM Merchants to Be Asked Aid; Spaulding Offers ' Site for Dock to Renewal of steamboat communi cation between Salem and Portland was proponed last night at a meeting at the Salem Commercial club at which C. K. Spaulding. or the Spaul ding Logging company, and Captain Exson of Woodturn were present to propose plans for financing the serv ice. A laiger gathering of merchants and manufacturers is to be called within a short time to consider the purchase of a ' boat, which would principally cater to the trade be tween Wheatland and Salem lost with the discontinuance of the run of the Oregon City Transportation company. Captain Exson has agreed to secure hilf of the necessary funds in Portland If local men will raise the other half or a little more than that. f During the discussion lst night II. O. White mentioned th disad vantages of thv present boat land ing and Mr. Spaulding volunteered to give to Salem a better location of the city will build a whatf there. Thl3 met with an expre.flon of ap proval from those present, as also did the mill owner's offer to take shares In the purchase of a boat. He maintained that the controlling in terest In the vessel should be among the Salem merchants ro that they would be assured that the boat would not be moved away to another river. "We don't want to ran a passen ger line with flunkies and food." he said. "The merchants should back t up and must not depend upon the enkinemen and captain to get the l no in ess. We must feed It with fteicht right here. Our company used to ship in great quantities of material on the boats fn the past and we are going to do It again when conditions ara normal. So are other firms." Captain Exson mentioned the Gra hamona as a possible purchase at a cost around 115.000. but Mr. Spaul ding was of the opinion that another slightly smaller vessel . could be se cured for 110,000. Even though the vessel barely paid expenses or even lost money, the latter delated, it would be a valuable factor In estab lishing more ad vantageous freight rates and would be worth money to the community, though this not not anpear in actual proflU fiom o;era tion. Southern free trad loaders In Washington row hnsten to say that they never had anr intention or riv ing the price of cotton. We suspect ed It all along. American Economist. FRAME-UP IN MOONEY CASE NOW ALLEGED United States Investigator Files Exhaustive Report With Secretary of Labor, Indicating Corruption. STARTLING FACTS OF DISHONESTY ASSERTED Officials Accused of "Facts" Which May Rock Cali- . fornia to Base SAN FRANCISCO. Nov. 22. Defi nite statements that the prosecution of Thomas J. Mooney, under sen tence of death, and other defendants in the preparedness day bomb explo sion rases, was tainted with manu factured evidence, were made In a :eport published here today. The report was addressed to Secretary cf Labor William B. Wilson and bore the signature of 'John P. Ittnunorr, director general of employment for the United States. Densniore did not deny today making the report, but declined to comment on it and said it should be issued officially from Washington. Alleged corruption wa mentioned by the teport as Involving a number of persons and as having existed in cases of national interest, such as the notorious San Francisco graft cases in 1V07: a civil case Involving mil lions and other recent criminal case. Present and former public officials were mentioned in the report. Alleged crookedness In orfice was charged with reference to cases now pending. The bomb cases. In which Mooney, his wife, Rena Mooney, and Warren K. Rilllngs. now serving life Imprisonment, were Indicted for tn murders, were described aa "made to order." The revelations Included reference to the alleged confession of a man now dead in which a former Justice or the California supreme court was mentioned in tonnection with a case In which the alleged confession stat ed 1410,00ft was passed. More than 40 columns of newspa per space were filled by the report. Many columns of stenographic re ports of alleged conversations obtain ed by dlctaph,one were set out. Tel ephone conservations were recorded. Details of alleged meetings between an official and ceretaln notorious characters were given. A summary of facts" was appended to the re port, alleging conditions existed that Justified the federal government In taking action to assuie to the bomb explosion defendants "their rights." Mention was made In the report of Instructions to make "secret and altogether informal Inquiry" into Uh Moonev case, and the summary of facts" given all bore on the alleged unfairness of the bomb er.e trials Densmore's presence in San Fran cisco for some time generally was known to be in connection with de- paitnmtal affairs. Including certain Immigration cases. The report re ferred to sis months. of Investigation. All the alleged Irregular incidents recited were brought to bear upon the main conclusions as to the writ er's findings In the bomb cases. Evidence adduced at rthe bomb trials was analyzed and the alleged taint on the testimony Bet out. Four of these bomb cases have ben tried. In the first Rilllngs was sntend to life Imprisonment. In the second Mooney was sentenced to be hanged. In the third and fourth Weinberg and Mrs. Mooney were acquitted Four of the ten counts against three defendants were dismissed. Mrs Moonev. Noland and Weinberg were relased on bail. Two appeals for a new trial were made for Mooney by the trial Judge President Wilson sent messages to Governor W. D. Stephens which nev er were made public. Many labor organizations took up the fight to get Mooney a new trial. World-wide inteiest finally was shown In the ease. Summarizing the published find ings today, the reiort said "practi cally the whole case agalnft Moonev Hillings and Mrss. Mooney was made o order." The conclusion, the re- nort states, was reached through dl rect evidence that seemed sufficient and also by the alleged facts addnced In the Investigation tending to show corruption. The report alleged that certain things "render it Ineiedltable that he (naming an official) snonji be either impartial or honest In the conduct of a case of this nature; that he Is and has len fr som time past co-operating with notorious Jury and case-fixers." All the conclusions reached In the report summed In a set of three "facts." bore on the lotiih prosecn tlons ard the wtitei's opinion as to the ralrners of the trials. Discussing them the report said "it would b well within the province and privi lege cf the federal government to devise some means, without giving offene to the duly constituted and bonertly functioning authorities of (Contlnted on pace six) a " AMERICAN BOYS GETTING READY TO COME HOME Movement in Direction of United States Already Begun in Camps CONSTRUCTION STOPS Civil Population of Bruges Shows Deep Bitterness Toward Germans (By Tk Attociated lrtu) HEADQUARTERS OF THE AMER ICAN FIRST ARMY Nov. 22. (5 p. m.) While as an elective military tone the American army remains in tact, the homeward movement has already begun. Construction of all kinds has been stopped and contracts and deliveries cancelled where pos-j slble and the men whose services' have been in these and other lines or activity are either en route to ports or plans for their embarkation are under way. The first to go will be the sick and the convalescent wounded. These will be sent home with the greatest pos sible expedition. Certain divisions exhausted by replacement drafts until only the skeletons remain are also going homo. One of the biggest of the present problems is the land transport to tie seaports. With the coming of win ter the French need almost the en tire rapacity of their railroads to dis tribute fuel, food and other supplies throughout the country. This will delay the transportation of the Am erican supplies. LONDON. Not. 22. Field Mar shal Haigs communication dealing with the progress of the Rrltlsh army of occupation Issued this evening. says: "Yesterday evening our advanced detachments occupied Namur and crossed the Meuse south of the town. "Today the march has been con tinued along the whole front. "Our troops have reached the line of the River Onrthe and are ap proaching Andenne and Ambrestn. "Hundreds of German guns nd number of machie guns and trench mortars passed Into oar possession In the course of our advance yester day." , (By T Afoctattd Pre; HRCGES Nov. 22. The civil pop ulation of rtruges Is much more bit ter toward the Germans than the sol diers who have fought them for more than four years. Terms of bitter hate and a demand of revenge come from civilians alone; the soldiers grin -oberly. The correspondent entered a ci gar store when an old lady sold him a Ttllalnous cheroot, a relic of tier- (Contlnned n rg 2). Nationwide Prohibition To Be Drasitc Is Plan COI.l'Mnrs. O.. Nov. 22. The drastic features of a federal prohl bition enforcement law on which dry leaders will insist on congress enact tag In case the federal amendment !s ratified by the states, was out lined today by Wane H. Wheeler. national council for the Anti-Saloon league, to state anti-saloon league tupports and dry workers at the con clusion or the world-wide prohibition conference bere. The proposed bill provides for a federal prohibition law enforcement commission under the collector of In ternal revenue with special officers scattered throughout the natloa. Near-beer will come under the bar If the proposed law Is enacted. A deT Initlon of alcoholic liquors, the sale and manufacture of which will be prohibited. Is to mean distilled malt vlnons, splritous and alcoholic liq uors. Near-beer It Is said, will be caught both, under the "malt and al coholic" stipulations. No person will be permitted U have lliuor in his possession unless It has been squired legally, and to b acquired legally It must b ob tained under a special permit Issued by the federal enforcement otflcers or by state enforcement officers. even alcohol sed for sacramental and medlelnal purposes must be ob tained with permits, the manufact urer. seller and buyer belong on the same plane. The fine arts must obey the same rules as to permits and any of the alcohot df d in them must not be pot able. The law alto Is to contain an In Junction feature to deal with "peak eagles." t?ndr this provision, the oniator of a "speak-easy. oae con victed and Injunction obialned against bis further operation, would be liable to Imprisonment for coir tempt. Mr. Wbeeler said be expected enough states to ratify the federal amendment by next March to mak It effective, and that the proposed en forceiuent bill will be offered In con cress nt as soon as the axaend mcnt becomes operative. PERSHING IS IN LUXEMBURG WITH TROOPS Wild Scenes Enacted as Yank General and Men Enter Capital City of the Utile Duchy on Hun Border. TOWN JOY-CRAZED AS RELIEVED OF TEUTONS Friendly Proclamation Issued by American General to , the Residents LUXEMBURG, Thursday. Nov. 21. General Pershing entered the city of Luxemburg this Afternoon ahead of his troop. The Ameri cam com mander and Is staff drove into lb capital In automobiles. The general was greeted by thousands of cheering Luxemburgers and with the blowing of sirens and the ringing of church bell. ' The eighteenth Infantry of the first division were the first American troops to enter the city. The Americans were greeted by thousands of civilians, who lined all the streets through which the troop's marched. School children tossed flowers in their pathway and each soldier was presented with s bou quet of chrysanthemums. Brigadier General Parker's visit to Premier Emll Beater and bis pre sentation to the members of the cabi net brought the assurance that the government was in thorough accord with the Americana. There was evi dent a spirit of heartfelt reler that the Germans had gone. It was ar ranged that the ministers of state and the municipal authorities should continue their functions, the Amer ican's part In a! fa Irs being nothing more than to make of Luxemburg a link in the lines of communication and to stand prepared to maintain order. When the Germans left the city of Luxemburg General Parker stood on an embankment watching them. A German general, mounted on a, big white horse, far below but not y many blocks distant, viewed the . same movement. The troops filed past the German commander rapid ly, the men apparently being In the - best of humor., A band was playing and the scene resembled peace time maneuvers rather than the move ments of war. The discipline of the men was not broken enough to In terfere with the keeping up of a, military march, but It was evident that the spirit of the Germans was far from that which make for war. The people of Luxemburg mad elaborate preparations to receive th Americans. Almost every building Hew the Luxemburg flag, with her and there an American banner and every once In s while a plctur of President Wilson could be seen, al most always coupled with that of Marshal Foch. Some 40 societies had made plans to participate In th parade of th Americans and late Wednesday baud was heard in a last rehearsal of the music It expected to play today. General Pershing Issued this proc lamation shortly niter entry of the Americans: "After the four years of violation of your territory the grand duchy of Luxemburg baa happily been liberat ed. Your liberation from German occupation has been demanded of th invaders by th armies of th Amer icans and the allies as one of th con ditions of th present armistice. It becomes necessary now for the Amer ican troops to pasa. thruogh th grand duchy of Luxemburg and to establish and maintain there for a certain Urns their lines of communi cation. "The American troops hare com Into the grand duchy of Luxemburg as friends and shall rigorously eon duct themselves according to Inter national law. Their presence, which hall not be prolonged more than shall be strictly necessary. , should not be for your hardship. The func tioning of yoor government and your Institutions shall not b Interfered with In any manner. Tour life and your occupations shall not be moUsi ed. Tour persons and your welfare hall be respected. . "It will be necessary for the Am erican army to use certain things, railroads, telegraphs snd telephone s snd perhsps other public establish ments for the needs of lodging and transport; furthermore, the commod ities which become necessary for 4 ball be paid for after jnrt estimate. "It Is presumed you will not per mit any arts of aggression against the American army or give any in formation or aid to Its enemy. Yon will always conform to the instruc tions that th American commander, for the safety of his troops and your proper protection may give. J T1IU WClTIILft Saturday probably rain west, fair cast portion; fresh easterly winds. 'f 1