.snssunsw. S
THE WEATHER:
The Statesman Mtmn the leaded
wtra report of tbe Associated
Press, tbe creates! and most re
liable pre aiaoclalloa la tie i
world.
Friday. falr' eceDt probably. rain
"near the coast; moderate
southwesterly winds.
i
SEVENTIETH .YEAR
: SALEM, OREGON, FRIDAY MORNING, DECEMBER 3. 1920
PRICE: FIVE CENTS
FINANCIAL
TRADE BODY
ISPROPOSED
GsTerners Favor Creation
by Federal Government
if Foreign Trade Finance
Corporation
.PLAN WOULD RESCUE
FARMERS FROM RUIN
Fire State Heads Will Press
Passage of Suitable Leg
islation at Capital
HAflRISBURO, Pa., Dec. 2.
l-.tav "the leadership of Cover-
1 UUl -
gort W. L. Harding of Iowa and
Tliomas W. Blckett of North Car
r.im ;the eovernors' conference.
is session here today, went on
record as faTorlng creation by the
federal government of a foreign
trade finance corporation design
ed to fo to the rescue of American
farmer!) who face ruin because
tbere Is bo market for their sur
plus stock of foodstuffs, grain
and other products. ,
Rural CrPdifTt Proposed.
r A report adopted by the gover
nors without distension included
the recommendation that the fed
eral reserve board use its good
ofiices to, obtain refunding of far
mers' debts through a system of
raral credits from banks through
oat the country. .On account of
a rule prohibiting the passage of
formal resolutions by the gover
nor?' conference, the action taken
was not as direct as contemplated
when the nrooosition was first
explained by Governor Hardina;
yesterday. Then it was proposed
that a committee of fve gover
tors should go in person to Wash
ington to press passage of suit
able legislation.1 t
Rather than suspend the rule,
t a governors - decided to . aecept
&e proposed resolution simply as
1 report which, it was explained.
raid be equally effective and
' utie same time avoid commit
in a possible Impropriety.
States Rights Neglected. . .
.' S.t.'Sing this - afternoon on
'tier ',-alIzation of . government
. l:-"-.)v" and stressing the de-
" liraity of decentralization Gov
tmor Robert D. Carey of Wyom
in dsplored what lie called j a
roving neglect of "state right."
.Tne federal government through
pertain activities was "re tar dins
development," he declared.
Immediately Governor Harding
took the floor with the suggestion
"that all other Republicans turn
their faces to the wall, permit
ting our Democratic friends to
ehofkle." '. i '
A few moments later Governor
M. Parker of Louisiana, making
plea for farm laborers of, the
'oath who. be said, had to com
pete .with cents a day syrup
and vegetable., oil manufacturers
of Oriental countries," declared
viiat was needed was "protective
Import taxes." v '
Recommendations Follow.
Governor Goodrich of Indiana
rose. n would perhaps he In
order for the Democrats lo turn
tbelr faces." he said; ' -2
me action was taken on the
recommendation of a committee
f tire , governors appointed yes
terday wko presented the follow
In report: ; 4
JThi financial situation In the
vnole i country is cause for: the
traveat concern but not for de
Sair. All lines of business are
reiiizinj heavy losses, but the
'ft decline of prices of farm
commodities to far below the cost
production threatens a nation
u diaaater. The situation de
wda Infinite patience and fore
araaee and; supreme wisdom
courage. Nothing but evil
rsulj from anger or fear.
Ve believe that tYia tanuiiMt
f U situation can be relieved j
taeteral ways: j I
. Let every Individual do all
ea to help and encourage his
B'ghbor. Let there be a com
mobilization of the financial
n iplritual asiets of every com-nity.-
Neither God toor gov
jTt ought to be askid to help
nose who do not fiifst make
V7 effort possible to help them
Thre oasht to be a
B1td effort in every community
Irr T Waif eood men from be
atroyed because be cannot
r.1 ate,T meet his obligations,
v MUt,n conditions !t
lB ?!ab the acme of inhumanity
eM ot, ntdom to force any
1 w I K0 bankruptcy if by the
Z i, ..br indulgence be would
WUmately able to pay. Bus-
iaat-Ilure do more than wreck
man V : thejr 0"-tin destroy
B(,7, er" indulgences and re
maB ou,d Le granted by the
tha l5?',ew to tne Jobbers; by
the n 10 tne mrchanU; by
. " J!4 time for a creditor to
Ut, debtor bT the throat an 1
o4t r 'Pay bat thou
treat ih federal government
Haance corporation of
LIGHT CONCERN SCORED
BY STATE COMMISSION
I .' ' . : - v '
INCREASE OF KATES DENIED
."IX OFFICIAL ORDER'.
Annual Reports Held Inarrnrate
and Not Sufficient to Meet
, Demand
Because of the failure on the
part of the Cottage Grove Electric
company toset out clearly the
financial status of the corporation
and other information essential to
the conduct of its business, the
Oregon public service commission,
in an order Issued here yesterday,
denied the application of the
corporation for an increase in
rates. "The entire record is preg
nant with evasion and attempt to
conceal that which is most im
portant to the commission and to
patrons in attempting to arrive at
a proper solution." said the
order. "Where the record is void
of any semblance or attempt even
to approximate the revenues then
it is entirely barren of anything
upon which to base an order fix
ing rates.
"A reasonable time over which
an accurate account of the income
and disbursements on which to
predicate an order would be a
year, and until the figures are
available covering that period
there is no possible way even un
der the most extraordinary, cir
cumstances to fix fair and equit
able rates.
, "The property is in place and
has been carefully checked and
Inventoried and the figures there
in given, approximate the correct
valuation. The annual reports
submitted are in many particulars
inaccurate and therefore it Is un
necessary to go into this matrerin
further detail.
"It is very unusual to find such
lack of familiarity with the
purchase price of a going concern,
more especially of- a utility, as
was evidenced in the bearing of
this application." It would lead
one to think that there was lack!
of capacity or lack of willingness,
perhaps both.' There seemed to
be no effort to present actual fig
ures as to betterments and addi
tions -although this' property has
been under the same management
and control for more than 12
years." V :
TAX LARGEST IN
NATIONSANNALS
New Prohibition Order to
Embrace States, Hawaii,
Porto Rico and Alaska
WASHINGTON, Dec. 2. Col
lection of 15.407,580,251 In taxes
and efforts to control, the liquor
traffic under the prohibition act
formed the principal work of the
internal -revenue bureau during
the last fiscal year. Commissioner
Williams said In his annual re
port made public tonight.
, The tax collection was the
greatest ia the history of the na
tion, he added, while In prohi
bition : enforcement the bureau
was faced with the creation of an
organization which embraced' alt
states and Hawaii, Porto Rico and
Alaska. -. .
Total income and profit taxes
made up the bulk of revenue ob
tained by the government with
f 3,956,936,003, but the report
shows -that an additional S295,-
S09.355 came from tobacco taxes.
The levy on distilled and fermen
ted liquors produced 1139,401,
149, and miscellaneous , and war
excise taxes brought in i8S3,
863.871.
The remainder of the revenno
was from capital stock stamp and
soecial taxation. Mr. Williams
noted the collection of 113.117.
Sg from aliens who were depart
ing i for j" their native lands after
a temporary residence in tne
United States. Many, he said,
were not inclined to comply with
the revenue regulations which re
auire the settlement of all tax
liabilities before passports are
issued. :
Total expenditure of the bureau
was $29,647,439, Including 82,
059,774 for enforcement of pro
hibition; $460,827, to enforce the
Harrison narcotic jlaw, and $89,
703 for enforcement of the child
labor law. This made the actual
cost of collecting the record tax
till $27,037,134. or 50 cents per
$100, -as compared with 53 cents
per $100 for the fiscal year of
1919. , "
Olive Alexander Sues
School Board for $1000
HOOD RIVER, Or., Dep. 2.
Mis Olive Alexander, a teacher
who was discharged by Cascade
Locks school board October 4, to
day brought suitr to recover
tiOftO: alleafnr that the action
was a breach of her contract with
the board. .
! Miss Alexander was employed.
her complaint states, at a salary
of ins ner month.
Miss Alexander alleges that the
nrinciDal of the Cascade Locks
school. J. H. Dunn, requested
that she teach certain high schoo,
not included in her con-
.... .mil that the board's action
followed a fit of temper on his
nart. : '
The school board. In art an
.tM that Miss Alexander s
MnnK wa invalid and that she
PLIGHT OF
FARMERS IS
OF CONCERN
Agricultural Committees of
Senate and House Begin
Hearings on Price Falling
Conditions
CREDIT FOR GERMANY
ADVOCATED BY BRAUER
Non Artificial Structure of
Price Maintenance Be-
lieved Fallible
WASHINGTON, Dec. 2. The
Plight of farmers due to falling
prices was taken today to con
gress. Agricultural committees of the
senate and' house, in joint session
began hearings on conditions
brought about by falling prices
preliminary to devising relief
measures. They decided to ask
Secretary Houston and Governor
Harding of the federal reserve
board to come before them tomor
row after; Eugene Meyer, former
head of the war finance corpora
tion, had declared that rehabili
tation of that body would go a
long step towards furnishing the
desired relief by financing exports
of surplus crops.
Profits Turaed to Loans.
Senator Hitchcock of Nebraska
told, the conference he planned
or introduce measures making
available the profits of the fed
eral reserve banks, amounting to
about $60,000,000, for loans to
agricultural interests. Governor
Harding, with whom he confer
red, issued a statement saying
neither he nor the board had tak
en any stand on the proposition.
He declared be had criticised Sen
ator Hitchcock's plan, but that
the matter was one not within
the province of the board, as it
concerned the use of funds which
the law required should be paid
into the treasury.
Legislation extending a billion
dollars credit to Germany was ad
vocated before the' Joint commit
tee by J. J. Brauer of New York,
who claimed to represent the Ger.
man government, while Senator
Smoot of Utah announced he
would propose an embargo on im
ports of wool for relief of Ameri
can wool growers in a bill be will
offer Monday.
Grain Corporation Should Pay.
i Representative Campbell, Kan
sas, suggested that profits of the
grain corporation, about $100,
000,000, ! be made available for
loans to farmers.
Mr. Meyer told the joint com
mittee that the act creating the
war finance corporation was
passed four months after the arm
istice and introduced by congress
to bridge over the situation by
financing exports till normal eco
nomic conditions were restored.
He said conditions now are those
which congress had in mind in en
acting the measure and that re
storation of the corporation would
Kave a tremendous stabilizing ef
fect. Farmers in some sections of
Nebraska have said they will burn
their corn because at current
prices it would not pay for coal,
L. O. Scroyer, secretary of tbe
farmers' union of that state as
serted. He urged further creditn.
immediate - financing to export
surplus crops, a protective tariff
and appointment of a "dirty farm
er" as secretary of agriculture.
Itevamping of Agencien Opposed.
Opposition to the "revamping"
of wartime government agencies
for peacetime operation 'was ex
pressed by Senator Edge, Rpub
lican. of New Jersey. He was
anxious, he said, to help the farm
ers and other classes equally, out
added that consumers were tired
of high prices.
"The only durable and infalli
ble barometer, of business is he
law of supply and demand." Sen
ator Edge said, "and to set up an
artificial, 1 uneconomic and false
structure for the maintenance oi
nrices. because some certain In
dustries are suffering, is only
nostnoninr the evil day when all
business and industry. Including
the farmers, inevitably must face
the music." ,
Insanity Warrant Sworn
Against Thomas Lottsso
PORTLAND. Dec. 2. An In
sanity warrant against Thomaa
Lotisso was sworn out today oe
fore Soecial Agent Bruce Came
ron of Circuit Judge Tazwell's
court by Barney Lotisso, his fath
er, and Mrs. Jennie Lopez, a sis
ter, i
lotisso is now In the county
jail awaiting action of the grand
jury on a charge oi nrst aegre;
murder. He is said to have con
fessed'to police that he shot and
killed his wife. Te?sie Lotisso,
early Monday morning after kid
naping her from a party ot inenas
in a Chinese restaurant.
A hearing will be given the ac
eufterf man tomorrow when :
board of physicians will pass on
his mental condition. No state
ment was made by the father and
sister beyond the clainmhat Lo-
INHERITANCE TAX LAX
SAYS STATE TREASURER
OFFIC IALS m;E POWEIIS HH
MADE FLASTIC
Thoaand or Dollar Lost Aanu
ally IWause of Present
j Alleged Defect
That the inheritance tax law
now in effect in Oregon should be
so amended that Its taxing powers
will reach the holding f all
foreign corporations whose assets
consist wholly or in part of real
and personal property within the
state, was recommended in a let
ter prepared yesterday by O. P.
Hoff, state treasurer. The let
ter, containing the recommenda
tion was addreKd to.. Mis Cor
nelia Marvin, state librarian, who
is chairman of the committee ap
pointed recently by Governor OI
cott to gather data on state sys
tems of taxation, and ways and
means for raising more revenue.
In his recommendations State
Treasurer Hoff cited the case of
Henry Miller, who died some time
ago In California. The appraise
ment of this estate showed a gross
valuation or .$41,000,000 and
among its assets were holdings In
the Pacific Livestock company of
San Francisco. This corporation
owned real property in Oregon
valued at $1,690,000 and personal
property to the amount of $1,200.
000. No inheritance tax has ben
received by the state 'of Oregon
rrom this property for the reason
that the law does not provide for
such contingencies
LODGE AND NEW
TO HOLD SEATS
Elimination of Senators as
Prospective Cabinet Mem
bers is Belief
WASHINGTON, Dec. 2. Elim
ination of Senator Lodge of Mas
sachusetts and Senator New of
Indiana as prospective members
of President-elect Harding's cab
inet was reported to be a definite
development of the visit here to
day of Harry M. Dangherty f of
Ohio, friend and adviser of the
president-elect. . ... .
Mr. Dangherty conferred with
a number of prominent Republi
cans, including Senators Lodge
and New. Tbere was no announce
ment of the subjects or results of
the conferences, but close friends
said both senators had advised
Mr. Daugherty that they desired
no cabinet preferment, believing
that they could perform better
service for President Harding and
their. party by remaining In tbe
senate.
Mr. Lodge made public 'a state
ment urging; that course on Sen
ator New. Friends of Senator
Lodge said they believed that his
position regarding Senator New
applied with equal force to him
self. Many matters of legislation
were said to have been discussed
by Mr. Daugherty with his Re
publican conferees. These Includ
ed Senator Watson of Indiana.
who will go o Philadelphia to
morrow to confer with Senator
Penrose of Pennsylvania, chair
man of tbe senate finance committee.-
.
The question whetber partial
tariff revision to meet conditions
regarded as urgent should be at
tempted In tbe coming congress,
preliminary to general tariff re
vision planned after President
Harding's inauguration was
among subjects said to have been
discussed.
Rojrding cabinet appoint
ments. Republican leaders who
talked with Mr. Daugherty said
there was no disposition by Mr.
Daugherty or any other Republi
can leader to "frame a slate" of
cabinet eligibles for President
Harding.
Mr. Daugherty talked briefly
with Senator Knox of Pennsylva
nla, who has been mentioned for
secretary of state, and planned a
conterence with Senator Knox to
morrow before leaving for Nor
folk to meet Senator Harding.
Astoria Man in Hospital
With Broken Left Leg
3. A. Gilbaugh of Astoria is In
the Deaconess hospital with a
broken left leg and an injurd arm
as a result oi nts automoowe
turning turtle on the Independence-Dallas
road in Polk county
abont noon yesterday. He has no'
other serious Injuries. Two wo
men who were in the car with
Gilbaugh, whose names have not
been ascertained, were unhurt. In
turning a corner the automobile
skidded and turned over.
Koch Wounded in Fight
Over Illicit Liquors
PRINEVILLE. Or.. Dec. 2.
Henry Koch was twice shot and
seriously wounded at his ranch
home near Ochoco. Or., yesterday,
according to word brought o the
sheriff's office here today. An
officer went to the place and ar
rested Pat Flvy, who was ehrged
with having done the shooting.
According to the officers, the two
men had quarreled over some
illicit liquor and a still, which
were confiscated and brought
here.
MOTOR VEHICLE FEES
EXCEED TWO MILLIONS
OltFGOX NOW HAS TOTAL OF
KU.4IM M ( IHNKS
Than lO.INM) Application for
, '1021 IJi-trmtm Ilrreivrd by
iH-jutrtnierit
Registered automobiles in Ore
gon at the clone of business IK
ceraber 1. 1920. aggregated 103..
1 O s
io. accuruiDK to a report pre
pared uere yesterday by the c
retary of state. Other n-gisci ra
tions included 3.5o9 motor? vrles.
3.36C chauffeurs, 751 motor deal-
era and 137.053 operators, from
which the total fee amounted to
$2,081,790.25. Receipts from
motor vehicle licenses, as ser re-
gated by the secretary cf state ror
each 12 months since the incep
tion or the laws requiring registra
tions follow: 1907. $7o8; 1908.
az.103; 1909. $3813; 1910.
747: 1911. $27,316: 1912.
MZ.394: 1913. $56,873; 1914.
1915. $108,881.50;
1916. $146,254; 1917. $196,787;
1918, $461,422; 1919. $602,239;
U20. $2,081,790.25.
Motor vehicle owners who have
not applied for their 1921 licenses
are urged by the secretary cf state
to do so at once In order to avoid
congestion in the department dur-
ing tbe last few days of the year.!
Records of the secretary of state
show that there are 103.000 li
censed cars in Oregon, although
only 9000 applications for 1921
permits have been received. Ap
plication blanks mav be secured r.f
any chief of police, sheriff.
rccoruer. county ciera or ty ap
plying direct to the secretary of
state.
COURTMARSHAL
TRIES COUNTESS
Organization Charged Witb
Conspiracy To Murder
Mflitary Police
DUBLIN. Deer 2. At the royal
barrack a today the Countess Geor
gia na Marklevicz, member or par
liament for the St. Patrick's di
vision of Dublin city, who was ar-
rete1 twn mnnthi mm va ricwl
by court-martial on a charge ofitr,a Bl n farther attempt to
conspiring between January.
1918. and September, 1920, to or
ganize a "flanna erreann." other
wise, known as Sinn Fein boy
acoats.
This organization has been
charged with conspiracy to mur
der military police; with unlaw
ful drilling; the carrying of arms:
furnishing recruits to the Irish
volunteers, and generally promot
ing disaffection.
-The countess looked extremely
ill today. The military escort
confiscated - the photographic
plates, taken by the newspaper
photographers.
The. newspaper men were
searched when bey entered the
barracks.
The countess today refused to
recognize the conrt. and the ses
sion was r occupied with the. ex
amination of witnesses for the
prosecntlon.
Tbe proceedings were enlivened
by the countess acting as Inter
preter for counsel, who frequently
stumbled over the pronunciation
or Irish names in the translation
or documents.
IMMIGRATION
IS ATTACKED
i
Tentative Approval Given
Bill to Practically Sus-
pend Immigration
WASHINGTON. Dec. 2. Ten
tative approval was given today
by members of the house immi
gration" committee to the bill as
framed by Representative John
son, of Washington, chairman
which practically would "unpen.!
immigration for a two-year jeriod
Mr. Johnson said be would Intro
duce the measure Monday when
congress convenes.
Committee members said they
were hopeful that both the boti?e
and senate would dispose of Im
migration legislation early. Un
der an agreement at the commit
tee "conference entry for perma
nent residence In the United
States would be limited to par
ents. grandparents, sons and
grandsons nnder 1H years of ace
and unmarried, or widowed
daughters and granddaughters o
citizens or of aliens who have
signified their Intention of be
coming naturalized.
Clauses permitting the entrance
for a six months period of travel
ers. or officials of foreign gov
ernments, their families, servants.
and employes, and of aliens who
have resided for at least one year
continuously in Canada. Cuba or
Mexico, met with general approval
of committee members, as did
the admission of students for
temporary stay,"
WOOL EMBARGO SOUGHT.
ALBUQUERQUE. N. M-. Dee. 2
The executive ittee of the
New Mexico Wool Growers' asso
ciation, in a resolution adopted
today, asked for an embargo for
a year on wool, of any kind and
all roreign goods manufactured
of wooL
FUTRELL IS
KILLED IN
FU SILLADE
Small Courthouse Force
Stay Mob Wben Tbey
Barricade Behind Mat
tresses Witb Heayy Firing
STATE TROOPS ARE
ENR0UTE TO SCENE
Five Negroes Are Placed on
Trial for Murder of Her
man Jones
GOLDS BORO, N. C. Dec. 2.
One man. H. Futrell. former dep
uty sheriff of Wayn county, was
shot during aa attack on a special
guard of 12 cltl
ns barricaded In
the Wayne county court house
when a mob of eltlaeas fird upon
the jail In the attempt to seize
and lynch five negroe. held for
trial charged with the murder of
a white man. .
Firiaff laivt Several Miaatea
Tbe tiring lasted only a few
minutes. Barricaded behind felt
mattresses the small force in the
courthouse returned the fire and
Futrell was killed. The mob scat
tered. A company of slate troops
is en route here from Durham.
Excitement prevailed tonight In
the. vicinity of tbe county conrt
bonne here where five negroes
were plardon trial for morder
laee today under guard of citi
zens. Heavy firing was in progress
at 9 o'clock and one man was re
ported seriously . wounded. The
jail was surrounded ,by hundreds
of men and the crowd constantly
Increased.
mixes Guard Comrt 1!a.
The court house was guarded
by deputized citizens and after the
exchange of shots, the mob dis
persed. State troops were report
ed on their way here on a special
reach the prisoners had been mad.
op to 10 o'clock.
The prisoner bav been kept Ia
the state prison at Raleigh since
their arrtut ten days ago follow
ing tbe murder ot Herman Jones,
grocer of this city. Tbe sheriff In
bringing them here for trial evad
ed a mob that awaited the party
at the station by getting off tbe
train and spending last night in
the woods with. bis prisoners. He
tier returned to Raleigh, re port -ng
to Judge Deven of the super
ior court thatl troops would be
necessary if a! trial was to be
held. i ,
The court, however, sent tbe
five prisoners back to CoJdnboro
and the trial began after a party
of several hundred Goldsboro
citizens had been deputized to
guard them.
BUILDING TRUST
IN JURY HANDS
Testimony Alleges That
Stone Mason Contractors
Boosted Prices of Work
NEW YORK. Dec. 2. While
the 4oint legislative committee
investigating the "building
trust." continued Its hearing to
day into tbe activities of the
building materials organizations.
the November extraordinary grand
jury was grinding out a number
of Indictments for the criminal
prosecution of persons exposed by
the Investigation.
Robert P. Brindell. president of
the building trades council, three
times previously indicted- for ex
tortion and attempted extortion,
again was on the Ut handed up
to Judge Mulqueen tonight ac
companied by his attorney and
pleaded not guilty. Tbe nature of
the charge was not disclosed as
three others said to have been
rimed in the same indictment,
had not yet been servd with
bt.ch warrants. Brindell's ball of
$100,000 on the other Indictments
was continued.
The committee today beard tes
timony alleging that the stone
maain contractors of the city had
organized for boosting the price
of masonry work.
This organization the Stone
Maon Contractor's association
it was alleged by Anthony Bres
cia, mason contractor, made a
million dollar levy on its members
e.nnually and forced contractors
into membership with tbe aid of a
walking delegate of the- stonema
son's union.
Sidney Treat, secretary of the
aMoeiation of dealers in mason
building material, admitted he
had detroy-d five bunIIe of cor
respondence containing thousands
of letters In July. 1920. after he
bad read In the newspapers that
the district attorney was Investi
gating optrations of the associa
tion. Ernest Braun. secretary of the
maon's supply bureau testified he
had destroyed the "option cards'
of that organization, "many
months after they bad gone Into
re Saute.'
FIVE VICTIMS PERISH
IN APARTMENT FLAMES
WIFE OF IjOXDOV DAXCKII IS
AMONG DEAD
Ktalrwavs sum! FSr Knrfi Were
Mtwinc Urtwrra tVrtala Floor
l IVlir Iteyurt
NEW YORK. IVe.- 2. Identi
fication cf tbe laxt of the five
victims who prrUnrd early today
a in Id flames that swept a five
klory aartmeit fcouwe In Wwt
l'ifty--con J Mreet as Itetty Jones,
wife of Hobby Jonre. a London
dancer, vn made tonight.
Tbe other victims were Dr. F.
M. Potter, veterinary of the New
York Hippodrome, trainer of aal
i.iaU and an owner of rare borne.
Mrs. Kva Lum-obiU. Kntlirh
piemier danreue and actr-. tbe
wife tt( Victor Luvcunitie. and era
j le of ld". lonilun.
Mrs. Harold It. Itrid. Vocal
student of Goderkh. Oat. '
Mm. Jesie Jenklcs of Califor
Lia. rUtrr of Mrs. Held.
The police started aa Investi
gation after receiving reports that
Malrways were missing between
certain floors of the budding and
that there were no fire escapes.
RATE CHANGE
IS DANGEROUS
Organization Reluctant to
Discuss Changes in Dis
count Rates
WASHINGTON. Dec. 2. An
appeal by Senator Owen. Demo
crat, ot Oklahoma, to tbe federal
reserve board, tor a general low
ering of Its re-discos nt rates,
brought a response tonight from
W. P. G. Harding, the board's
governor, which declared that the
organisation was "reluctant to
discuss proposed changes la dis
count rates. because such dis
cussion would "hare aa unsettling
effect and give those beat la po
sition to form aa opinion as to the
probable 'action of the board, aa
advantage over those not this sit
uated." Senator Owen's letter said that
reserve bank earnings from pres
ent discount rates were rannlng
at 159 per cent per aaaaia "pre
venting tbe government la the po
sition of profiteering. and la
some rase "absolutely stopping
legitimate distribution.
Governor Harding 'countered
with the statement that the sen
ator was "Ignoring the economic
forces governing the movement la
prices which for months past have
been la evidence all over the
world.
"The board believes the unfav
orable conditions which are now
tne subject of so much complaint
were inexitable," Governor Hard
ing added, and could not In any
event have been long deferred. It
confidently asserts that but for
the precautionary measures taken
several months ago conditions
would be far worse than they are.
with the proepeets of stabilization
and revival much more remote.
To the profiteering charge.
Governor Harding retorted that
tbe profit of reserve banks after
paying the government franchise
tax wonld be. not ISO percent or
more, but barely seven per cent aa
their liability to slock holders."
Senator Owea' characterized the
board's policy as "Indiscriminate
deflation, lamely doe ia my opin
ion to the lack of vision of tbe
New York city banks. Mr. Hard
ing replied that tbe board "hopes
that even though your views and
those of the board may not coin
cide In all respects yon may later
on reach the conclusion that In the
light of subsequent event, the
board's policies are sound.
SEA YIELDS UP
FOUR VICTIMS
Indian Searchers Find Bod
ies Including Thar of
Jensen Baby
SEATTLE. Dec. 2. Four mors
bodies of victims or tbe wreck or
tbe barge W. J. Plrrte. cruihed
on Cake rock near the mora ot
the Qulllayute river last week. In
cluding that ot the 11 -months-old
baby of Captain Alfred 11. Jrtn.
were found today in tr, vlrlcty
of Cap Johnson, urrordlng to a
message early tonlcht from Clal
lam Hay, Wash. This makes a
total of 1 6 of tbe 22 persona
aboard tbe vessel accounted for.
The bodies were fount by In
dian searchers aasiriag n.rmVri
of the life guard who bvvi been
directing tbe search.. All were
buried on th beach. h- Jensen
baby being interred be die Its
parents.
.wond Engineer Carlos peier
ton and Ernesto Aravena. believed
to be the only survivors of the
wreck, left Clallam Day on the
steamer Sioux tonight snd are
expected to reach Seat'le torac r
row morning.
The 14 victims of the wreck
are buried at a point less than
half a mile from a raonumat
erected by Seattle Norwegians la
memory of 22 victims of the
wreck of tbe Norwegian bark
Prince Arthur, wrecked near Cape
Johnson 17 years ago.
REVISIONS
TO LEAGUE
CONSIDERED
Amendments to Covenant
Are SongltTHat Will Re
move Obstacles to Entry
of United States
PERFECT INSTRUMENT
IS NATION'S DESIRE
Sir Eric Dnxmmond Sends
Expression of Gratitude
to President Wilson
GENEVA. Dec. 2. Amend
ments for revision held the Door
of the lea rue of nations aaeeoi
My today, the debate bringing oct
clearly that amendment or tke
roveaant was la the zninds cf
rearly all the delegates, some of
whom were more pressing In
their deire ror a perfect Instru
ment than others, nut all thlek-lt-g
or a revUioa that would re
move obstacle to the entry of
the United States.
Artlrle X U X4 Mentioned.
Article 10 was not mentioned,
but has been frequently diarn
ed In small circle and N. W.
Howell ot Canada, when he in
sisted that adoption of a rela
tion by a committee koald tot
be understood as closing the door
to the presentation before tke a
aembly of other amendments tfcan
those proposed by tbe Scandinav
ians. Is said to have had la anted
the artirU that baa been subject
ed to much contention.
The delegations of the Drills
dominions have been studying
how to approach the assembly ea
the situation.
The eventual proposal to elim
inate article 1 la somewhat rro
mlaed by the general understand
ing that consideration of all pr
poed changes ahonld be pot
poned until studied by a special
committee. Thla.. understand'.' g,
however, came largely from tie
aaxiety of the dinte not to
precipitate revision until the at
Ut.de of the United Ftates nnder
the new government is kuown
kow Voter rvrsetits Inaalmity.
Leon Dourgeoise. of the French
deleratioa Is pre-occopied lest the
committee Investigation shonld
lead it to consider alterations In
volving a revUion of the Versail
les treaty and he demanded to
day that It be understood that the
committee should not be itself In
rcmpetsnt to consider any am
endment to the covenant that la
vclved modification of the treaty.
The close of the debate brootbt
a moment of great saipense when
?r B.nTlon ot Atatlae.
who failed to Uke part la It.
debate, voted alone agalnat tke
resolution rejecting consideration
of amendments to the eoveaant
Deer J TT M. Cf
.'.. ,ln. hesitated as If
unwilling to believe that the lose
delegate would prevent nnanim-
M. Vivian!. France, relieved the
tension when he remarked that
postponement of consideration of
amendmeata Involved only a ques
tion of procedure tn which .nsnl
mlty Is not necessary. Thereupon
he chairman declared adopted
tt. "t?9"0' h,5 Provided
' . " cnaisavun amend
ments be studied by a committee
and given it authority to confer
ay other amendments proposed.
The assembly has made a seri
ous mittake Jn postponing dis
cussion oi the amendmeata to tke
eovee.nt ia the opinion of Senor
Pueyrredon of Argentina, who
aid to the Associated Press after
the meeting:
IUof Itailt IWoe rowadatloti.
.KThC ,vmb,jr h" Dself m
the position of having built tk
roof of a nous before Its founda
tion, because I regard Argentina a
amendments aa fundamental.
Muinng oi tne amend
meats
n ail-lnnertiat
should no, has. ba delaVJ
ii' Vr 'IV. n,tln of the as-
Sl"nio boa Id be per
'ted. 1 regard Argentina's
ftoposed amendments aa absolat
ely necessary to tbe strong roan
diDon or the league.
"I may make another attempt
to bring the matter before this
a.sembly. f on careful coaalder
ation I find It o,ibU.- "l3r
Senor Pieyrredoa's chief ara.
endments lactuds arbitration by
the International court or justice
the election of members or las
council and tbe admission of all
states.
Denmark has notified tke
league that both house, f ,,
Danish parliament mutt Mu a
lal bill before Danish troc;t
raa join the International leacB
r,mr' V ru, deleratioa ex-f.-l'T1
h4rTvr. t all the po
lltieal parties la Denmark favor
the sending of troops to the VII aa
plebiscite zone.
lrwswmSHl Ketsds WH-ow Mcssa-
Sir Eric Dm Esmond, secretary
general of the league, has sett
the following message to PresV-
(Continued oa par 5.)
(Conti
nued on page 4)
ner own ucuve