The Oregon statesman. (Salem, Or.) 1916-1980, March 15, 1924, Page 1, Image 1

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1 1
3 " t
Officers From Royal Mail
Liner Testify That Seals
. Were Broken and Bootleg
gers Supplied y
Revenue Agent Making Ar
rest Identmed as One of
Good Customers
NEW YORK, March 14.- Trial
of the government's suit for con
fiscation of the Royal Mail liner
Ordana, seized Wednesday as a
smuggler, began today with -witnesses
testifying that narcotics and
liquor were sold freely each time
the vessel, reached this port, and
that her owners shared the pro
ceeds. , .: . : ,' - ' - , ,
Champakne, whiskey, benedic-
tlne. runi.Ver, gin and drugs were
dispensed to bootleggers by offi
cers and crew of the Orduna, ac
cording to the testimony.
i Bar Never Closed
The witnesses. Including federal
agents and members -of the crew,
declared the Orduna's bar never
was closed in port.'
' At the outset of the proceedings'
E. J. Berwind, American and Brit
ish coal operator and .financier,
posted a $1,000,000 bond so the
Orduna" might -continue in trans
Atlantic, passenger service. She Is
scheduled to sail for Hamburg to
morrow with 144 passengers.
Charles Dawe, the ship's store
keeper and one of the seven mem
bers of her crew to plead guilty of
Illegally. Importing liquor, was the
government's principal witness.
He testified that in his three years
on the Orduna liquor had been sold
aboard, her every time she reached
the port of New York, ' He declar
ed the liquor was brought In un
der seal,' the seals -were broken
when the vessel docked, the liquor
disposed of to bootleggers and the
storeroom re-sealed. r :
Dawe identified Joseph Smith,
one of the f revenue agents who
raided the ship and one of the gov
ernment's chief witnesses today as
a bootlegger who often had pur
chased liquor on the Odruna. .
Smith, preceding Dawe on the
stand, said he was a' truck driver
until ha became a federal liquor
agent last January. ' While still
driving trucks he had seen bootleg
gers laden with liquor leave - the
'Orduna on 20 or 30 occasions, he
said'. , ' , T
?' He told of Joining the govern
ment senrIce,.of boarding the Or
duna with a fellow agent two
voyages ago, and of buying ry
whiskey at $23 a case and gin at
S3 a bottle. They also drank good
beer over the uhlp's bar at Dawe's
invitation, said the witness.
Smith's next visit to the Orduna
was when she reached port In Feb
ruary. Ralph Oyler, a federal nar
rotfe agent, accompanied ' Mm.
Smith, testified he bought 60 cases
of ;whfskey at '$35 a case from
Storekeeper Dawe and his linen
'man, and that Oyler bought seve
ral ounces of a narcotic dtujr.
Smith also testified that he and
Oyler last Tuesday arranged with
Dawe "to buy all the champagne,
rin rve and benedlctine In the
ship's storeroom, and a consider
able supply of narcotics. Mt was
on the pretense of taking off these
purchases the next day, that a
squad of federal men raided the
'.'8hIP. ' I '
. Company Gels Blonev .
Curiosity prompted-fclm, ai4 the
witness, to aik 'Dawe what he did
about "the' people who the
hnatv nawe's ; answer was, ac
cord in r to Smith: v;
"We turn the' money Into; the
company. They don't care .what
we do with " the liquor' as long as
we ret the money."
Oyler followed .Smith ' on the
stand and quoted pawe as having
explained further: :..'vVv--y
?The company makes more out
(Continued on page 3)
OREGON: Unsettled with oc
casional rain Saturday ; mod
erate northwesterly winds.
Maximum temperature.
Minimum temperature,
Rainfall, none.
'River, .1.6. feet.
, Atmosphere,, clear, .:
Wind.west. -
Twenty-Five of Crew Lost
During Storm Off Hatteras
Tuesday Night
BALTIMORE, March 14. Ten
stolid, bleary-eyed sailormen, clad
in nondescript clothing, filed down
the gang plank of the Norwegian
steamer Cissy, rwhlcti docked here
They are the only known sur
vivors of the crew of 35 of the
big Ward line freighter Santiago,
sunk in the blizzard off Hatteras
Tuesday night.
They brought a tale of ship bat
tered by storms for three days,
suddenly turning over and going
down with her captain lashed to
the bridge, her engineer and his
assistant down in the hull, and
others of the crew scrambling for
Ten stokers were trapped In the
f ireroom.
' The Glssy picked up the ten sur
vivors Wednesday afternoon after
they had clung to their capsized
lifeboat for hours. When they
left the Santiago there were 11,
but when the boat overturned, one
was washed away.
Two boats were launched but
only one succeeded in getting
away. :
J. P.
Local Attorney Exoectcd to
File His Statement m
Near Future
Joseph A. Benjamin, local at
torney, is being urged strongly to
become a candidate for justice of
the peace for the Salem district,
and it is believed he will shortly
lie his statement as a candidate
or the Republican nomination for
that office. As far as known at
the, present the only-, other candlr
date will be P. J Kuntz. who oc
cupies the office at the present
time. t
Mr. Benjamin was formerly as
sistant attorney general.
Debate Limited and Amend-
ments Prohibited By
House Agreement
WASHINGTON, March 14 Pro
tected by rules-prohibiting amend
ments and limiting debate, the sol
diers' bonus will be brought be
fore the house for a vote next
Under this arrangement, agreed
upon in the house today, a two
thirds vote will be necessary for
passage, but proponents of the
measure tonight predicted its ap
proval. Advocates of a full cash
payment option form the principal
opposition to the bill as now
drawn, hut after a protest on the
floor today against consideration
of the measure under limiting
rules, this group Bald no organ
ized effort to obstruct the measure
was to be expected.
The bill provides for paid-up 20-
year endowment life insurance
policies, and cash payments to vet
erans entitled to not more than
Pavementon Highway Loos-
jened in many Cases' By
- " Force of Storm
HOOD RIVER, or., March 14
Houses and trees of the Mid-Col
umbla district -were rocked today
by a heavy windstorm. The weav
ing- of the big trees so loosened
the roots that many tell, carrying
masses of earth and rocks with
them. '
Vln many sections the pavement
on the Columbia River highway
was damaged.
Many wireless aerials were
blown down and limbs - of trees
and signboards , were . plentifully
Former Investigator for De
partment of Justice Was
Money Carrier in Various
Will Be Pressed for Details
Next Time on Stand
Time Yet Uncertain
WASHINGTON-. March 14.
More sensations the most lurid
Of the lot yet developed tumbled
today into the record of the sen
ate committee Investigating Attor
ney General Dangherty.
Gaston B. Means, former inves
tigator for the department of jus
tice, and man of many adventures.
who described his present busi
nesa as "answering indictments,'
testified that he was the "money
carrier" for Jess W. Smith in vari
ous deals implying corruption.
He told a startling tale of col
lections of money for Smith in
sums ranging from 35,000 to
$100,000. and before he finished
had brought , Secretary Mellon's
name into a story about permits
for whiskey withdrawals, and said
he had even once investigated At
torney General Dangherty himself
for the late President Harding.
Charged Unfounded
Means was careful to say that
the charges against the attorney
general which he investigated
then, he found to be without any
foundation in fact. He also dis
claimed that in his testimony to
day about Smith's alleged money
collections, he had any knowledge
of the attorney general being in
volved, or receiving any of the
money collected for. Smith or one
"WTT. Underwood, whom henamed
in that connection.
At no time, in his story of money
collections, did Means identify the
people he said he got It from.
Specifically, Means testified that
In February, 1922, at Smith's di
rection, at the old Bellevue hotel
In Washington he collected $100,
000 in thousand-dollar bills from
an unnamed Japanese representing
Mitsui & Co., Japanese bankers,
who brought it on behalf of the
Standard Aircraft corporation to
halt government action toward re
covery of over-payments aggregat
ing $6,000,000 on war contracts.
The witness said that Smith came
n the night and took the money
from him.
Means further testified that at
other times he collected from per
sons he did not name, snms total
ing about $50,000 which he said
were for Smith and his associates,
who in .turn, he said, were pro
tecting the owners of the Carpen-tier-Dempsey
fight films -from
prosecution when they transported
and exhibited them in interstate
commerce. The owners, of the
fight films. Means testified, were
Smith, "Jap" Mumtf, New York
correspondent of the Cincinnati
Enquirer, Will Orr, former private
secretary to Former Governor
Whitman of New York, and one
Howard Mannington.
Other collections. Means said,
were made by him for -Smith on
account of whiskey withdrawal
permits, and turned over to Smith,
but he had not named the amounts
nor given specifications when the
committee adjourned until tomor
row. When he returns to the stand
Means is to be pressed for details.
Senator Wheeler was uncertain
tonight whether Means would re
sume the stand tomorrow or
whether Roxie Stinson, divorced
wife of Smith, for whom Means
was substituted today because
Miss Stinson was ill, would con
tinue her testimony.
0. P. Hoff's Condition Takes
Takes Turn for Worse Is
Portland Report
PORTLAND, Or.. March 14,.-
The illness of O. P-'Hoff, state
treasurer of Oregon, who has been
undergoing treatment at a hos
pital here for some time past, took
a grave turn today, according to
attending iphysidiabs. , Resort, to
blood transfustonws being consid
ered they5 said.' "
Chief Prosecutor Suffers With
Rad Cold Condition Not
The oil committee took a suddeu
recess today until next Tuesday
because of the illness of Senator
Walsh of Montana, its chief prose
cutor. A cold from which the senator
has suffered for some time de
veloped into a slight bronchial
trouble and his physician advised
him to rest. It was stated that
his condition was not serious and
that be should be able to resume
his duties next week.
Until Senator Walsh returns the
order of procedure in the inquiry
will be undetermined. There are
several phases remaining, includ
ing the report of auditors who
examined the books of stock brok
erase firms; examination of wit
nesses relating to the story of
Leonard Wood. Jr.. regarding a!
leged attempts at "oil deals" dur
ing the republican convention at
Chicago in 1920; and I he ques
tion of Harry F. Sinclair.
During the day President Cool-
idge transmitted to the senate
copies of diplomatic correspond
ence passing between the Ameri
can and Colombian governments
regarding the Colombian treaty,
but there was nothing to show
that Albert B. Fall, as secretary
of the interior, had influenced
the administration's course in urg
ing prompt ratification of the long
pending convention in 1921.
Woman Money Order Forger
Arrives in Salem From
Los Angeles County
"Well, I wanted to quit anyhow
and now is a good time," remark
ed Mrs. Mabel Cordpva to Deputy.
Warden J. W. Lillie as the latter
took from the latest female pris
oner a package of cigarettes upon
her arrival at the prison. Deputy
Warden Lillie, after relieving the
prisoner of other personal prop
erty, jokingly asked for her cig
arettes and was surprised when
his request was granted.
Mrs. Cordova is a federal .pris
oner, received from Los Angeles
county, California, -to serve two
years and six months for forgery
of postoffice money orders. She
was indicted on six counts, receiv
ed the same sentence on each,
though the sentences will run con
currently. She is of Spanish de
scent. With the arrival of Mrs. Cor
dova the female population at the
prison is increased to seven. The
state, in the capacity of boarding-
house keeper receives $40 a month
for the keep of each prisoner. Fed
eral prisoners are sent here be
cause of lack of womens accomo
dations at the federal prisons on
the Pacific coast-
Eugene-Klamath Line Com
pleted Distance of More
Than 30 Miles
PORTLAND, Or.. March 14.
Laying of rails on the Eugene
Klamath Falls line of the South
ern Pacific railroad has been com
pleted to a total distance of 3714
miles, according to announcement
made today by William Sproule,
president of the Southern Pacific
company who is visiting in Port
land. Railroad rails have been laid
a distance of 6 miles beyond
Oak Ridge on the North end of
the" so-called. Natron cutoff, ac
cording to Mr, Sproule, and for a
distance of 31 miles north of Kirk
at the south end of the new im
provement. This leaves 81 miles
to be completed. Contracts for
the clearing and grading have
been let from both ends of the
rail head. At .the present time
1,000 men are employed in the
work, Mr. Sproule said.
Common pleas court No. 5 late to
day granted a petition for a jury
trial to determine the sanity of
Harry K. Thaw. Ten days notice
must be given to his mother who
Is "committee of his person", and
to the trustees of his estate before
the case can proceed,
Future Program for Stale to
Re Based Upon Report
of Commission
PORTLAND, Ore.1, March 14.
The future program of irrigation
and reclamation in Oregon will be
based upon the findings and re
commendations of a' commission
to be appointed jointly by the
Portland and state chambers of
commerce and given the unre
served support and cooperation of
all irrigation districts of the state
seeking federal aid, it was agreed
at a meeting today attended by
representatives of the Baker,
Umatilla. Owyhee, Warm Springs,
Harney Valley and Deschutes pro
jects, the Portland chamber and
the state body.
The meeting sounded a new
note of harmony in the reclama
tion a. f fairs of Oregon. Through
out the day the committee and
individual progressed step by step
until late in ttm afternoon by
unanimous vote the report, of the
advisory body, which had been
asked by the two chamber orga
nizations, was adopted by the M&
tricts. This agreement provided for
elimination of contention among
the districts, one against the
other, and for united action by all
in support of the program to be
laid down by the commission
which is to be created.
Females at Penitentiary to
V D r.. r r i r--
dc rut un equal oasis
With the JVIen
women prisoners at the state
prison are being put on the same
Dasis as the men prisoners and
will soon be equipped with uni
form clothing, probably of calico
or some other cheap cloth, accord
lag to plans being worked out by
J. W." Lillie, deputy warden, who
has received permission from War
den A. M. Dalrymple to proceed
along the line he has in mind
"So far the women prisoners,
all of them federal prisoners, have
hardly known they were in pris
on," Deputy Warden Lillie said
yesterday. "They have dressed as
they saw fit. This was not so bad
as long as we had only one or two,
but now that we have seven wo
men and prospects of one or two
more soon, there is going to be a
Some time ago the practice of
relieving women prisoners of all
jewelry. Including rings, was
adopted. Gradually the restric
tions are being placed upon them
until they will enjoy no more
privileges- than are accorded the
male inmates of the Institution.
The me.ri are permitted to spend
$2.50 monthly for luxuries and to
place their orders once a month:
Mrs. T. E. Cornelius, matron, has
been obliging and has gone down
town for purchases requested by
her charges. These are getting
too numerous, according to Deputy
Warden Lillie, and It is time' to
call a halt. In the future the wo
men will be required to use prison
stationery and write on one side
of the paper only instead of using
both sides.
There is little work for the wo
men at the prison and. thpy are
occupied by scrubbing and keeping
their own quarters in shape. Ex
ercise is obtained by short walks
in charge of Mrs. Cornelius. When
one or twoare taken at a time
she is unaccompanied, but when
several of the women are exercis
ed at the same time she is gen
erally accompanied by a guard
The women have individual rooms,
with heavy metal screens instead
of bars. They are securely lock
ed for the night at 8:30 o'clock
With the male prisoners, though
they sit in a body by themselves,
they are permitted to attend the
weekly shows in the prison audi
BAKER, Or-,, Marc 14t After
weeks of warm spring leather,
Baker tonight has a blanket of
white, and snow' falling . steadily
With the sun shining brightly up
until noon today, a stiff wind
sprang up bringing clouds and
snow flurries of almost unprece
dented intensity. The snow is ex
pected to be very .heavy in the
mountains,, thus offsetting, in a
measure the water shortage - fear
for the coming summer."
Says Miss Stinson Is Disap
pointed Woman Who
Blames Him Because She
Did Not Get Money
Assistant Attorney General
Gave Senator Informa
tion of Fight Films
WASHINGTON, March 14. At
lomey General Dangherty tonight
made a general public denial of
the insinuations against him made
in testimony before the senate in
vestlgatlng committee. "Any in
ference, direct or Indirect," he
said, "that I ever participated in
any way with the late Jess Smith
or any ono else, for a consider
ation, either monetary, political
or social, In any dishonorable way
in connection with the adminis
tration of the liquor laws, or any
other laws is false and untrue."
Miss Stinson Scored
The attorney general then pro
ceeded to deny in detail in a for
mal statement the inferences as to
wrong doing on his part, contain
ed in the testimony of Roxie Stin
son, Smith's divorced wife, whom
Mr. Daugherty described as "a
disappointed woman who blames
me because her divorced husband
did not -make her sole legatee un
der his will."
He declared he had no interest
whatever, with Colonel James G.
Darden in his western oil com
pany, that he had not been a party
to any speculation to make money
out of violations of the law or out
of the showing of prize fight
films; -and that Jess Smith never
approached him at any time on
the subject of clemency for fed
eral prisoners.
"On several occasions," he con
tinued, "it has been intimated by
persons ostensibly acting for Miss
Roxie Stlnsdn that for a consid
eration her silenee could be pur
chased and any documents in her
possession could be delivered, all
of which deliberate and serious
attempts at blackmail have been
absolutely and unconditionally re
Copy of Letter Given
The series of statements began
with a copy of a letter regarding
fight film prosecutions from As
sistant Attorney General Earl J
Davis to Senator Wheeler, the in
vestigation prosecutor. It was
dated February 19, and an accom
panying statement by the depart
ment Raid:
"Mr. Wheeler has had this letter
and a report accompanying it. It
would seem that a story attempt
ing to implicate the attorney gen
eral with a plan to profit by the
use and shipment of films would
fall and fall before this report.
Senator Wheeler has not seen fit
to make the letter or the report
The letter follows:
"My Dear Senator:
"In compliance with your re
quest over the telephone for a list
of Dempsey-Carpentier prize film
cases which have been prosecuted
to a conclusion as well as of those
in process of prosecution I beg
herewith to enclose with the ap
proval of the attorney general the
information asked for you so far
as it is disclosed by the records
of the department.
"Because of the methods adopt
ed by those who were interested
in the interstate movement of this
film, speaking generally there was
no occasion lor the United States
attorneys to communicate with
the department with respect there
to. For this reason it is deemed
not improbable that there are
other cases in which fines have
been imposed of which the depart
ment has no record. The method
of-these people was for some one
to approach the United States at
torney and make known to him
that he had such a film and ask
about exhibiting it. When told
that there had been a violation of
law in taking the film from one
state to another, some person
would offer to plead guilty. As a
general rule the department did
not hear of the cases until after
they had been disposed of in court.
But, owing to the similarity of
procedure followed by those inter
ested in the enterprises the de
partment became convinced that
it was the result of a concerted
Continued on page 3)
The house decided to vote next
Wednesday on the soldiers' bonus
Secretary Work, proposed legis
lation to encourage new reclama
tion projects.
Inquiry into operations1 of the
bureau of Internal revenue was
begun before a senate committee.
Western livestock producers
asked the interstate commerce
commission for lower freight
The senate adopted a resolution
broadening the powers of the
Daugherty investigating commit
The senate oil committee post
poned its hearings until next Tues
day on account of the illness of
Senator Walsh.
Curtis N. Wilbur of California
was nominated to be secretary of
the navy and Hugh Gibson to be
minister to Switzerland.
Senator Sbipstead, farmer
laoor, iMinnesota, introduced a
resolution asking what the state
department knows of the new
French loan.
Gaston B. Means told the
Daugherty investigating commit
tee a startling tale of corruption
which he said had . existed in the
department of justice.
An agreement was announced
between the Washington and
Ottawa governments for appoint
ment of national commissions to
assist the joint engineering board
in planning for the St. Lawrence-
Great Lakes deeper waterways
Community Organization to
Meet Monthly Annual
Session Here
A tentative program for the
coming year has been outlined by
the Marion County Community
federation, according to an an
nouncement made by A. N.Pttlker
son, president. Plans include
monthly meetings until July, with
the f irst fall meeting being held
iu October. The annual meeting,
in January, will be held in Salem
as usual under the auspices of the
Salem Chamber of Commerce. An
economic conference will also be
held here for two days, early in
December, under the direction of
Paul Maris, of Oregon Agricultur
al college. The program for the
remainder of the year is as fol
April At Silverton. W. B. D
Dodson, manager of the Portland
Chamber of Commerce, and Miss
Marjorie Smith, of the domestic
science department, OAC, 'as the
principal speakers. Mrs. Lyda
King, Marion county health nurse,
will also have a prominent part
in the meeting.
May At Marlon. N. C. Jame
son and W. L. Kadderly, both oi
OAC, principal speakers. Mrs
Lyda Kiug, county health nurse
also to speak.
June Annual field day demon
stration at OAC. This event was
attended by a large number of
Marion county people last year and
a great amount of interest was
July, August and September.
No meetings will be held by the
October At Stayton. E. E. Fa
ville of Portland and E. R. Jack
man of OAC will be the principal
November A. S. Dudley, man
ager of the State Chamber o
Commerce, of Portland and C. L.
Long, of OAC, will occupy the
chief portion of the meeting.
December At Central Howell
Deacon E. C. Robbins, University
of Oregon, and R. S. Beeso, o
OAC. The latter will distuss farm
The economic conference will
be held here two days early in
December, under the direction of
Paul Maris, of OAC. The annual
meeting will be held at the Cham
ber of Commerce in January.
the . Associated Press). Arch
bishop Hayes of New York and
Archbishop Mundeleln of Chicago
arrived here this evening on board
the steamer Berengarla from New
York, -.,, ,.-
Eugene and Medford are
.'Forecast as Contestants
for State Total in Final
Game Tonight
Telegrams Deluge ; Team
:MedforfcLa Grande mix
Is Fierce and Fast
McMlnnvUle 32 f North Bond 24.
Eugene 3 J;-St. Helens 18.
Medford 35;, La Orande 20.
Independence 25; Bend 10.
- TODAY - .
- f
Afternoon Rem! Finals. ,
2:00 Eugene vs. McMinnvflle.
3 : 00 Medford ; vs. Independence.
. , Evening Final , w
3:00 Winner Eugene-McMInn-viiie
"vs". -winner Medford-Indcpen-deucy.
McMinnville, Eugene, Medford,
and ..Independence were, returned
winners in the second Tourd of the
elimination ' preliminaries ' 'last
night. , By virtue of their, victor
ies they will enter the semi-finals
of the state basketball tournament
in a neck and neck race 'for; the
privilege of playing In the finals.
On the basis of performance thus
far Eugene and Medford 'appear
sure to contest for the champion
ship tonight. I
Telegrams Deluge Salem.
Interest in all the games' of the
tournament has been tuning high.
The WUliamette gymnasium baa
been . filled t to capacity wtt& , In
terested ' and enthusiastic ' tpecta-
tors crowding the playing floor tf
get a glimpse of 'the games. - Mo
Mlnnvllle, Eugene, St. Helena, an
Medford were represented by dele,
gations of close to a hundred root
ers each while Independence vfai
backed by half the town. Tele
grams encouraging teams arrived
all day. The -most remarkable '
show of local spirit was exhibited
by the' townspeople of Bend who-
flooded their representatives with
93 telegrams by actual count at
the Western Union office.
With five . teams Pilot ' Rock.
St; Helens, Bend, North Bend and
La Grande eliminated from the
running the raee has narrowed
down' to a contest between the four
best teams in the state. Exciting
Contests are predicted in the semi
finals which Will i) played off
this afternoon.' .
McMtiutville Repeat.
In the first game yesterday aft
ernoon the McMlnnvUle hoys re
peated their feat or a few, nights
ago by coming from behind ia the
last few minutes of play and over
whelming the surprised North
Bend aggregation by a store of 32
to 24. North Bend led off strong
and secured a lead of nine points
daring the first quarter which ap-
Pa red sufficient to carry them to
certain victory. The slow-starting
Yamhill lads soon warmed up to
then fast passing offensive and
were dropping counters in regu
larly as they sifted through -the
weakening North Bend defense for
short tries at the basket.' ,
Eugene found ' St. Helena an
easy victim in the second game of
the day and defeated them by
score of 33 to 18. The game was
rough from beginning to end with
personal fouls called regularly,
I Eugene Team Strong
Tioferee Edlunds was t roasted
warmly by the partisan Salem
crowd when be banished Rubens
(Continued on page 2)
Owing to the Increased
Volume of K.
Being Carried in The Oregon
fitatoenum . .
7 o'clock Saturday.
is now the
for accepting ' .
V for '
Sunday's Statesman
if Ads received after :f his itime
will be frun under heading
Too Late to Classlfly.
scattered over the countryside.