t - WKATIIF.lt mm "The Statesman receives the leased wire report of the Associated Pre. lh greatest and most re liable press association la the world. ' Tuesday generally fair; cooler; Increasing south to west winds. SEVENTY-FIRST YEAR SALEM, OREGON, TUESDAY MORNING, MARCH 29, 1921 . PRICE: FIVE CENTS : ' . r tf Riii Rnnn d ismnc pace: I' . iiiiuL UHUL i DISMISSED : '. r. i ; . I Impracticable To Set Reas V oriable Rules Because of Diversified Duties of Em ployes Held. J 103 Dec ORIGINAL PARTIES DIMINISHED TO 67 sion Allows Carriers and .Vorkers to Still Ne gotiate n MRS. MILLER TELLS STORY OF TRAGEDY Circumstances Indicate That George J. Kuebler Lost Life Through Accident POLICE Gil UPPEfiJlD Communist Movement To Seize Halle is Postponed Officers Still Fear Cra rying Out of Plans. ARRESTS WHOLESALE AMERICANS ARE HELD PROHIBITION MEN MUST BE ACTUAL "DRYS" Pereons Too Recently' Con verted Not Acceptable to Superintendent Herwig leged Bolsheviks CHICAGO, Har. 2S.The : peti tion of four thousand empToyes on sixty-seven "short line" railroads for wages and working conditions Identical with those on the. trunk lines was dismissed by the rail I road labor board today. The ease was. heard last fall on the request of fifteen onions.. - Because of the diversified du ties of the shortline employes, the board declared it was "impracti cable to determine what reason able rules shall be on the short lines," and without a uniform classification of work, j the board declared It could not undertake 'to determine reasonable wages. Originally 103 carriers, employ, lug from 25 to 400 men each were parties to the dispute. Ten elec- , trie j lines were dismissed and 2S others applie d the wage scales ot the trunk lines. Under the de cision, employes and carriers may still! negotiate their own agree ments on wages or working con ditions, but the decision stipulat ed that it should not be consider ed as affecting "any wage in crease now In effect nor any agree ment regarding wages between any carrier and its employes." , to! Is KillediWhen i Hit by Baseball Bat ' ' BLACKSBURO. Va4 March 28. ' L. O. Sumner l ot Norfolk, at the Virginia polytechnic institute was almost' Instantly killed here when a baseball bat slipped from the . hand of his friend, Otis Forbes, and struck him above the heart, t Forbes is . prostrated. A letter received' from Mrs. Delia Crowder Miller by a Salem friend appears to clear the cir cumstances attending the death or George J. Kuebler, ber fiance, who was president of the Mutual Life Insurance company, rated as a millionaire, and who lost his life by falling from one of his office windows on the tenth floor of the Life building In Chicago. Friday. March. 18. His - death was -instantaneous and the fall, from all indications. was purely accidental. Mr. Kue ler sometimes suffered falntaittg hadn AVreo?. P! Communications Are Cut to fnrnr J1? iI Check Agitation by Al- of these attacks came on as he stood near the window, causing his fall to the street below. Mr. Kuebler was an attorney. He was a member of the Chicago Athetic club, of which he also was a resident. He was a mem ber of the Hamilton club, the Chi cago and the Illinois Bar associ ations, was a 32nd degree Mason and a Shriner. He was a writer ot national note for insurance publications and moved in Chi cago's best sets socially. At the time of his death it is said be had three big cases in the courts involving more than $1,000,000. Mrs. Miller, while In Salem, wait dean of the public speaking de partment at Willamette university and was author and director ot the historic pageant of Willam ette University, and the North west. She is now a resident of Chicago, living at the Elms hotel in Hyde park. It was not known when Mrs. Miller lived here that she also was wealthy. She lived modestly and entertained only her close friends. The friendship between Mrs. Miller and Mr. Kuebler covered a period of years, but it was not until the last few months that they had thought ot marriage. The wedding was to have taken place some time this year. IK TAX OPINIONS ARE HIDED 001 HALLE, Germany, March 2S.- Eisleben Is quiet and is under control of the police. Reports from BItterfield say", authorities have suppressed the revolt. The only fighting has been near San gerhausen, where a workmen's armored train was held up and several were killed and wounded. The , workmen still have the upper hand in Leuna. police show ing no intention of attacking the'm for fear they, will fulfill their threat to blow op big factories tber- : .. : . At Halle, the situation is quiet, this being due, according to the police, to postponement of the communist plans, which provided tor the. capture ot the surround ing towns first. The intention then was to march Into Halle and gain control ot the strategic and industrial center of the province. Police are not yet ready to say that the' communist movement has failed, and are still nervous of the outlook. However, It Is generally believed that the police are In a position to enforce the law. Gatherings Prohibited. Later in the day Halle was cut off from almfost every line ot communication except to Berlin. by the police, in an effort to check agitation by alleged Rus- PORTLAXD. Or.. March 28. Prohibition enforcement officres to be appointed for Oregon must be actual "drys" or their poiM ments will be classified by , the Anti-Saloon league or Oregon as an unfriendly act upon the part of the person or persons responsi ble, according to W. J. Herwig. superintendent of the organiza tion. Mr. Herwig gave out a statement today in which he de clared that men who have been too recently converted to prohi bition Will not bo acceptable to his organization. He said the suc cess or failure of prohibition de psnds upon these officers. - . ; "The offices of prohibition di rector United States marshal and district attorney are among those to be filled bv annointment which have a vital connection with pro hibition enforcement,- said Her wig. "The appointment of aien who are not in sympathy with prohibition to any of the offices mentioned above will be consid ered as an act inexcusibly . un friendly to prohibition on the part of whoever is responsible tor the appointment.. "Men who remained wet iu,the sunlight of past prohibition fights but who have gone ory under the shade of the political plum tre. are not sufficiently seasoned in prohibition principles to be In trusted with prohibition enforee mant." ' Three Victories Won by Gov ernment in Decisions . Gain From Corporate As sets Affected. RULINGS WILL AID TREASURY DEPARTMENT IIS I BE I Other Assessment Cases Ad vanced For ' Hearing On April 11 MRS. OLIVER HARRIMAN, who has consented Jo hare her famous figure of Christ, which has been called the world's finest, placed on exhibition. It was carved on a Florida bean by a convict who was executed f and whose grave is unknown. The carving is charac terized by experts as one of the rarest and finest works of art in the world. Us ''.'If I . . LULiBER ILL CLOSES DDI 1 DD ffil OUT ires Seven Enter Nation Races fOr April Tenth I elan bolshevik!, said to be numer- American Consul " j ' Transmits Message i WASHINGTON. Mar. 28. The American consul t Reral reported to the state department today that he had received -and transmitted tb the diplomatic representative of the soviet government the com munication or Secretary Hughes giving the administration's policy tm trade with Russia. i " rj " ous here. No telephoning was permitted except in German. The streets were ordered cleared by 9 p. m. and no vehicles were per mitted to go beyond the city lim its. - . . ' . 1 Congregation' In the streets ot more than three persons was for bidden and .there were wholesale arrests. The Associated Press correspondent, two other Ameri can reporters ana one Kngusn- man. who had been frequently in vestigated, were arrested for the second time ' while entering the security police administration horisiiiartfrra vhorc thev had Senator Has Stroke number or times. They were sent to district pouce neaa L03 ANGELES. March 28. Seven drivers will compete In national championship races to be held on the Los Angeles speed way April 10, the speedway as sociation announced today. They are Ralph De Palm a. Tommy Mil ton, Eddie Hearne. Rosco Sarles. Jimmy Murphy, Eddie PulJen and Joe Thomas, i Four preliminary beats of 23 miles each and a final of 50 miles will be run. Former Washington' WALLA WALLA. Wash , March! 2jr- Lelv Ankeny, ex-United States senator from Washington, suffered a stroke of paralysis at bis home here today and his con dition tonight was reported to be critical. i fiJEIt, SISTER ID OTHER IMIl'ES OF SIEL1 II. : D!E 1IEHDI TDDI1S III quarters under guard and exam ined for thre9 hours. Reporters Are Questioned. Their papers were scrutinised for suspected forgeries, their speech was examined tor signs- ot the Russian accent, and their opinions were solicited to deter mine If they had radical sympa thies. When they entered the room conversing in English, a rei-plendently uniformed sergeant with monocle, closely clipped hair and upturned moustache. called out sternly, "speak Ger man here." The correspondents paid no attention to this order and a young officer appeared and said: "Follow me!" "Who are you?" was asked. and he replied, tapping his chest. "Here I am. follow me. The correspondents followed and were sTSbjected to a cross examination ' regarding other news papermen reported to have made bol she vist speeches." They were permitted to pro ceed when the German authori ties . finally were convinced they bad no intention to act as agents of the enemy and that they were not bolshevik propagandists CORLENZ. March 28. It took the 20 men of the American mil itary police only a few minutes after their arrival at Montadaur to DUt down the disorders. They arrested th leader and confiscat ed communist literature. WASHINGTON. March 28. Three victories were won by the government today in the supreme court interpretation of the term "income" for the assessment ot taxes under the income and excess profits acts. .The court held that any gain derived from corporation securi ties or corporate assets and any increase In the value of a capital investment, when realised. Is tax able .as income. - The opinions were endorsed by the entire court. Solicitor General Frieison In terpreted the opinions as uphold ing all the contentions ot the gov. ernment and said 'they would go far toward relieving the treasury department of inconveniences re sulting from the multi-angled tax litigation facing it for the last year. No estimate could be obtained as to the amount effected by the court's action. Apparently with a view of ear ly-clearing the docket of all im portant tax questions, the court before recessing until April 11. advanced to that date hearing ot arguments in the insurance divi dend case, the corporations reor ganization case and the inheri tance tax. case. Key Cane Derided The first case involves tax a Indefinite Cessation of Oper- ations ls Announced To Spaultfing Employes At . Quitting Time Yesterday. WAGE CONTROVERSY JN UNSETTLED STATE Workers Say.JMove is Lock out, Management Says Poor Market v w y Reaches Hotel at The Dalles wounaea and Minus nis Wntrh anH $300 I THE DALLES. Or.. March 28 Carl Nelson, a contractor of Missoula. Mont., stumbled into water front hotel here early to day With a . bullet wound la his chest and with a story ot having frlTStnViiJ tSS!i ' od Vppiie. to stock day night near the railroad depot i tlw. -rMniiton i IRION GIVEN AUTO RECEIPTS RENE 111 bv two men who relieved him .of 8300 in currency. and a waten. One of the robbers, he said, then deliberately shot him. and the two men. evidently thinking him dead. ran away. He said he lay where he had fallen through the night. but this morning- regained enough strength to crawl to the hotel. lion ot dividends applied as par- Sum ADDOrtlOned tO . ThlS State $30,508.20 Mr. and Mrs; R. J. Clary, 1530 State street,-were i fdrintd by telegram yesterday of the death in an automobile accident near Astoria of Mrs. Clary's father, August Doimer tere of Portland, "her sister, Mrs. Gladstone Dawson of Gear-, fcart; Mr$. Dawson's husband and their 5-year-old daughter. llu Doniierberg was amaster plumber of Portland, Mr. Clary fs a?ent in Salem for the Union Oil company. He and-Mrs. Dawson left last night for Portland; , . ;-'v -'i i ' ' . -; s : v .JSTDM Al Orl Mar. 28 Four lives were lost near here late today when an automobile carrying a party of six ran off the Colombia highway near here and dropped bottom up in crtek boltont. The dead: t:. r- AUGUST. DONNERBERG, 58, of Portland. ! MHS.LADSTONE DAWSON, 28. of Gearhart. : GLADSTONE DAWSON, 32, her husband. NANCY DAWSON, 5, their daughter. 1 T i i ' Dawson Dies From Injuries Dawson who had been driving, sustained a-broken leg rl Internal injuries which resulted in his death a few hours , ffter the! accident. Mrs. Donnerberg who was riding with "Cf hnsrnnil ' was rut Infnllv hnl not seriously hurt. f Dawson did not recover consciousness and no explanation aa obtained a in the tausf tof the accident. Those who in estimated were of the opinion that it was caused by a break n ine steering (gear. ; i ! Accident Seen Bv Motorists The accident was witnessed by two men Who were fol lowing the Dawson car -in another automobile. They rushed to the resrn nnd siirroAilpil in raisins the wrecked car frdm Jhe eretk bed in a few minutes, but Donnerberg and Nancy Dawson had been drowned and Mrs. Dawson crushed to death, While Dawson was iinrnnsrinus. Besidea Mr. TinnnrtMrr the oiilr one in the wrecked car , . Wtin wra.- J , I D lUa oMl' nf i K t-v,, . j prouioii aliens irom owning ;inu awsons, who had been thrown clear of the car ana was un- and naming leases- to three 'jtt:a. , . . . ..Ja--.:-,- . years. . . ;.. LONDON, March 28. A Ber lin dispatch to the London Times says that-in the Ruhr district Monday passed rtttletly. In Dnes- seldorf and neichboring towns the communists placarded the walls with a summons to a general strike, but there was no response except in Haraborn. The small industrial town ot Mettmann is in the hands of the communists, es, timated to number 500. The neighboring towns of Wuelf rath and Welbert also have been oc cupied by communists. Elsewhere the security police have the situation well In hand and it is expected a majority of the working people will resume work tomorrow. Week Awards Statesman Classified 1 Ad Contest KILL 1H T." . SACRAMENTO, Cal.. March 2 8j The' senate Judiciary com mittee tonight voted to table Senator Duncan's bill designed to Each week the Statesman wilt give three cash rewards Tor the best "stories" about Statesman Classified Ads. The awards will be announc ed each ; Tuesday morning; l6t reward. 12.50; 2nd re ward. 1.50; 3rd reward, 1.00. Contestants must see that their "stories", reach the Statesman office before Mon day morning of each week In order to be considered. Last Week Awards. A number of very inter esting "stories" were receiv ed last week, nnd the Judges have decided upon the fol lowing as the winners: 1st reward. $2.50, Mrs. Grace Keuscher, 1535 North Church, Salem. J 2nd .reward. Miss Esther L. Thompson, route 8, box 67. Salem. - , 3rd reward, Mis Teddy Kirk, Indian school, Chema wa, Oregon. Out of the large number of stories received, the Judg es have decided that the fol lowing should have compli mentary mention and will be published In future Issue. 1st. Rovena Eyre, 1190 Oak Street. 2nd, Miss Lula Koschme der. 295 South 27th street. Salem. 3rd. Evelyn White, box 412, Newport. Oregon. The story winning first re ward is published in full be low; the others will be pub lished in future Issues of The Statesman. Watch for them. CLASSIFIED ADVERTISING Mow a ria.Htf1Ml Ad Helped a Iiilieartmr! Woman I have been wantins; for a long time to tell you of the great joy a Statesman ad brought me. A few years ago my husband came home, and announced Hhat he -had purchased a bookcase. He has a habit of buying that way. when of course. J would sooner go along, and help select things. It seems that a friend or his was going east, and arter having spent months and months of bis spare time building a bookcase he wa willing to sacrif ice (?) It ! of a corporation in this case the Du Pont Powder company, and tne last whether inheritance taxes can be deducted from taxable in come. ... - . The "key case! selected for de cision today, wan the appeal brought by the Merchants Loan and Trust company, as trustee ot the estate of Arthur Ryerson of Chicago, from decisions of Illinois courts upholding assessments lev led by Internal revenue officials on profits realised through sale ot certain' trust assets. Included In the-trust fund were 9300 shares ot stock In Joseph T. Ryerson & Son. a corporation which were valued at $561,000 March 1. 1913, but which were sold in 1917 for $1,280,000. Collection of the tax on the dirrerence in value between March. 1913, and the date of sale, as income, was upheld by the court's decision. ' Inronir Called Ciain The word "income" was defined by the court in a case under the corporation excise tax act ot 1909. Justice Clark said, as "a gain de rived from capital, from labor or Tor both." "It is obvious that unlesa this definition be modified It rules the ease at bar:" the opinion said, "and notwithstanding the argu ments heard we continue entirely satisfied with that definition. Since the fund so taxed" was the amount realized Irom the sate ot stock in 1917, leas the capital in vestment an of March 1, 1913. It is palpable that it was a 'gain or prorit, produced by 'or derived from'ithat Investmnet and thereby becomes the 'realised gain which has been repeatedly declared to be taxable Income". The opinion quickly dismissed a, contention that the word "in om" as used in the sixteenth constitutional amendment did noi include gain realized by a single transaction but, only profits real ized by one engaged in buying and selling as a buslmess. "It is sufficient to say of this contention," the court ruled, "that no such distinction was rec ognized in the Civil wai income tax or in the income tax ot 1894. The argument which Is pressed upon us falls to convince us that a construction should be adopted .hioh vnniri In a larz measure defeat tbe purpose of the govern- ment. . T'Plalnly the gain we are consid ering was derived from the sale or personsl prqperty and very cer tainly the comprehensive last clause tin section 21 'gains or profits and Income Irom any source whatever, must also in clude It. ir the trustee Is a Us able person within the meaning or th act." Ilyerson Fj4tr SHtlel . The reasoning tired in. the case of the Ryerson estate was held to cover the court's decision In the appeal brought bv David M. Good rich, of New York. Involving tax ation of profits on Investment capital, except that In one tran saction Mr. Goodrich showed a loss from the price he had paid for the securities. The ruling or the tax assessors that the value of March, 1913, which was below ALL COUNTIES PARTAKE Highway Fund Gets Three Fourths of Income Since Sept. 16, 1920 REACHES 0; S; Will Confer With Harding on "Mission of Courtesy" Wednesday v SALUTES AMERICANS Former Premier's Visit Has " Nothing to do With War Debt It Is Said The sum ot $1,710,843.14 was yestetday distributed by the sec retary of state's o.'Iice to tbe state highway fund and to the counties, representing receipts from motor vehicle, operator, chauffeur and motor vehicle oealers' licenses from September 16. 1920, to March 15. 1921. inclusive. During that period tbe total receipts, after deduction or re funds on acconnt of duplications. was $1,808,194.25. From this amount It subtracted $91,359.11 representing the expense of ad ministering the law under which the receipt and distribution of money is made. v or the net amount of $1,716 S43.14. three-rourths goes to tbe state highway fund and one fourth to the counties in propor tion to the registrations received from residents of the respective counties. To the highway liind goes a to tal of $1.27.622.33. and the am ount distributed to the 36 coun ties is $ 4 2.21 .7. Mullnomah county receives a total of $162. 251.90. the largest amount ap portioned to any connty. and Lin coln county receives $4H7.20, the smallest amount apportioned to any county. Marion county receives 508.20, the second highest amount in the state, and to the highway fund from Marion county receipts goes $91,524.59. Tolk county receives $774.77 rnd to the high way fund from Polk county re ceipts goes $22,424.33. NEW YORK, Mar. 28. -Former Premier Rene Vlvlanl, envoy extra-ordinary ot France to this country, arrived today' on the steamship Lorraine, and will go to Washington tomorrow. He ex Iects to confer Wednesday with President Harding, tp whom be camo "on a mission ot courtesy." A small reception committee went down the bay to meet the visitor and brought him back to Battery Park, where thousands had assembled. -He was accom panied by Stephana Lausanne, ed itor of the Paris newspaper Le Matin. He declined to discuss the of ficial nature of his visit before ha viiti; talked with President Harding. "I have come to the United States." be said, "to pay to the President the respects of the gov ernment and the nation of France. In saluting tbe first and great citizen of the rreat American de mocracy. I salute also the great and noble people for whom France keeps her tender affection , and eternal gratitude." Marcel Knecht. director of the French Information service here, said tonight tbe former premier's visit has nothing to do with France's war debt. (Continued on page n VICTIM RESIDED HERE New Chief of Staff of Army Will be Chosen freter A. Kufner, Who Lost Life in Umpqua, Son of Local Residents Peter A. Kufner, who was drowned SaturCay '.n the South Umpqua river near Riddle, when a boat in which he was riding overturned. Is a son of Mr. and Mrs. Peter KuTner, residents of Salem. K. F. D. 7. Young Kufner, who was 23 years old, was wjth two compan ions. Ted Fan-is and Joe Graham, attempting to locate some lost logs from their mill on a stream trib- WASHINGTO.V. March 2S. Secretary Weeks Indicated today that a new chief of staff ot the army to succeed Major General Peyton C. March wonld l" select ed ln-fore congiess convenes on April 11. Compilation of nominations for general officers is expected to be completed this week by the sec-J r"tary. The list. It is understood, will be almost a duplicate of that sent riHiKres by Former Secre tary lUker. which failed of confirmation. ' Tbe Salem sawraill of the Charles K Ssanldlasr Lorrmr company baa shut down indefin itely-. ' This was the notice given the mill's employes by the manage ment at quitting time last night and 1 the latest development in a controversy that has been waged for severs days between the man agement and the workers caused by an announcement that the min imum wage would be cut on April 1 from $3.fl0 to $3. fa the neighborhood of 100 employes are affected by the clos ing down ot the mill. Tbe sash and door factory and the river crew will 'continue operations. Iieam Kbowr Co f! let Charles K. Spauldlag said lait night that the shut down Is due' to the slump 1a lsmber bus!ness and lack of orders. On the other hand. Phillip Holden, an organi ser for the . timberworaers. de clared last night tkatahe move is a lockout. A committee representing the workers yesterday proposed to Mr. Spaaldlng that the difficulty ex ist tag between t'.ra and the em ployes be allowed to go before the local arbitration board and It was asked that he make his reply by 6:30 o'clok last night. When asked for his answer Mr. Spauld Ing is said to have declared' he would not take tbe Issue to arbi tration, neither to the local board nor to the state board of concilia tion. The workers declare they have a paper signed by Mr. Spauldlcg about a year ago la which he agreed to arbitrate all difficulties relating to hours and wsges. ' They were unsble to pro duce, this last night.' but say it will be produced today. The em ployes have called a meeting for tonight, but the action they ex pect to take could not be a see re tained! act night. Lumber Demand . Lac Hag-Mr.-Spattldlng' assertion that the closing ot tbe mill is due to lack of demsnd for lumber is sup ported by the general condition of tbe lumber business which is known to be slack throughout the country, with the -announcement that the minimum wage would be cut to $3 on April 1 O. J. Myers, local manager, said the company officials were by no means cer tain they could continue in oper ation even at that wage, but that to furnish employment the -company would endeavor to go ahead even If It could no more than break even, also that an attempt would be made to operate eight hours daily. - For some time the mill has been operating alx hours dally, and tbe argument was made that an eight hour day at $3 would be preferable for -the em ployes rather than a six-hour day at 45 cents an hour, which is the rate oo the $3.60 basis. Returns Curtailed, CiaJna Further, the management as serts that a $3 wage would be a decrease ot only, a bout 35" per cent in pay as compared with war time figures, wh'le the price or lumber on the same comparison has drppped 160 per cent- Man ager Myers cited other mills In the state that hare cut to $3 and some other that have cut to $2. 0 as tbe minimum wage. Mr. My ers frankly said that $3 tntght not be a sufficient wsge for the ordinary man to live on. but averred the cuT was an absolute necessity if the company made any attempt to continue operat ing. One move of the Spauldlng rota, pany, together with soroe other companies, was to withdraw from the Loyal Legion ot Loggers and Lumbermen. This organization at a recent meeting in Portland refused to place the minimum wage at less than 12.60 and as a result some of -the mills with drew from Its membership. Spaulding employes said last nlsht that all they are contending for is a continuation of the pres ent minimum ot $3.60. (Continued pa, page 2J. ,. ( Continued on page ) Kansas Exhibitors Bar Clara Hamon Pictures WICHITA. Kansas. March 2. A resolution barring films in which Clara Smith Hamon ap pears from theaters controlled by the Kansas Exhibitors' association was adopted by the association today. Greeks Gain Mastery Of Bagdad Railway CONSTANTINOPLE. March 2$. Kutala has been evacuated by the Turks and the Greeks are masters of the Ha x dad rallyay. and are continuing to advance to ward Aurora. Tbe Turkish communication announces the withdrawal ot the Ottoman forces to new positions.. The plan apparently la to keep the army Intact end retreat into i the depths of Aeantolla, drawing the Greeks after it, J