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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Feb. 23, 1920)
: -WEATHER "FORECAST
nreeon: Tonight and Tuesday fair.
Jdera.e north. .wind
Averafrs for Quarter Sadist
. . December 1. Hit ,
54 5 8
Member Aadit Bureau of ClrooSatlon
Associated Press Full Leaa4 Wire
.THIRD YEAR. NO. 46.
SALEM, OREGON, MONDAY, FEBRUARY 23, 1920.
PRICE 2 CENTS.
FEDERAL BANK T& CURB -CREDIT ABUS.
I 1 -""V II If II II f -SK, - II - - T n-- I -I SB
; AGAINST DRY LAW
Prohibition Director of Cen
tral States Ordered to Pro-
fpwl in Enforcement of
MHOA xa vriitMu
Iron River. Mich., Feb.
jj. "There hasn't been such
t hoax put over on the coun
try since the fake armistice
report as this report of the
rum rebellion' in Iron coun
ty," said District Attorney
Martin McDonough in an in
terview today with a corre
spondent of theMllwaukee
Journal. Continuing McDon
"There is no rebellion in
Iron county. Prohibition Is be
ing enforced to the limit and
my office is giving the feder
al agents every aid possible."
Chicago, Feb. 83. Major A..V.
..Dalrjniple, federal prohibition
commissioner for the central
states, received word nt 12:sa
o'clock Ihnl telegraphic milliwlzft
tmn fur him to lend an armed
expomllllcin of t'nltpd States
wills into lln- upper peninsula of
Michigan liml la-en sent from
Prohibition Director Kramer, at
tlio coplliil, was in cotninimlou
linn M Mr. Diilrymplc by long
Daliymple, with about tlilrtj
men, will leave Chicago at 8 p. trt.
(or Negaimee, Midi., whore they
will lie joined by a troop of Mich
igan stale constabulary.
Chicago, . .KebiS. Major- A. V.
Dalrymnle, federal prohibition direc
tor (or the central states, with six
armed aids today was en route to Iron
emmy, In the upper Michigan penln
iila, to quell what revenue aeenta re
garded as an incipient whisky insur
rection. The prohibition director in
formed Washington last might that
ttie county was "in open revo.i"
asalnut federal authority after he had
received reports that prohibition
?enu leading a party of Michigan
state constables 'were held up Feoru-
10 by Iron county offioialg and
wine they had confiscated was taken
(Continued on Page Five.)
El Paso, Texas, Feb. 23. Fresh
joluiion threatens Mexico as a remilt
1 the coming presidential elections
"cording to Excelsior, one of the
,e;Jl"g newspaper of Mexico Cltv.
To judge by the indications," Ex
says, "there Is not left the
!! ,,hPe that th cml" ele
'Z. wl" """"re the triumph oi y-
NaV' "ot fven lh PuWfc
IT ?ef,m8' wiU be assured by the
C if declaratin ot the great
"""J (the people).
tioifw'1"18 the present) revolu
u lt,ered lnto thousand
WUre rending each other with a fury'
units nr .i, v ls 01 tne same whole,
,'' of the same act.
lv. ' are coping forwaro .,.,-
K with ' r,e"",ti,m' wlth0- rec-
reg on ,akrWpath' ver a rug-
"en Z "lent tempest in which
h-v bwn f ''"riotlsm seems to
" Clean ,TOm ,he "
BY KEW REVOLUTION
Congress Recesses To
Honor First President
tZ Feb- 29-Both -te
""Won day "-'rained from dis
""rt to vmaUers b'ore them long
"m,? addre88' other
' cel.., 81 ,he '"P"01 were clos-4t,-,
fi a'6 the birthday of the
K'""-ren. , Prldent. Senator
Mor, lh. 0hl read the address
rLaTaif- WhiIe ,n the house
Ulin, P'ePreBntative Roden
Use. Vint"'- Representative Mon
'"""ifc an?"1.' t"oke on Washing-'
adine c ,u P1laU!f Punctuated
hmc"!arlv farewell address in
1,Jr 1monlt!aPPlaUdlnB Washing-;
mnitions against foreign al
Harding Blames Wilson
Delay In Ratification
Of Treaty By Senators
Columbus, Ohio, Feb. 21. Declar
ing the republican party "will wel
come" the responsibility of American
izing the peace treaty, United States
Senator Warren G. Hariilnr at a
of his home state republicans here to
day, held President Wilson solely re
sponsible for the senate's delay iri i.
ifying the treaty.
"Essentially alone he negotiated the
surrender of American nationality and
still essentially alone, one In a hundred
mililo, he blocks Its fial disposition,"
While democratic senators from ne
south generally have supported the
president In this stand, Harding said
the people of the south are for pr
tecting America's rights.
Senator Harding enumerated a num
ber of things which her declared the
Montesano, Wash., Feb. 23. Six of
the ten alleged Industrial Workers of
the World, on trial here for the mur
der of Warren O. Grimm, Centralia
Armistice Day parade victim, spent
today in solitary confinement for
throwing their food into the Jail cor
ridor. Jail officlnls said the six prisoners
were satisfied with the food but threw
It away Just to show their contempt
for the prison rules. Before being
placed In solitary confinement the
men were made to clear the corridor
of the fooif and utensils they threw
The six were Elmer Smith, O. C.
Bland, Cert Bland, James Mclnerney,
John Lamb and Eugene Burnett.
New Juror To Serve.
Montesano, Wash. Feb. 23.-r-Trlal
of ten nlleged Industrial Workers of
the World charged with the murder
of Warren O. Grimm Centralia Ar
mistice Day parade victim will be re
sumed here tomorrow with a new
Juror chosen by lot from the alternate
list, sitting in the plnce of Edward
Parr. Juror, whose Illness halted the
The new Juror will be either A. R
Johnson, Hoquiam, or James A. Ball,
Montesano, alternates selected to
serve in case of Illness among the
permanent Jurors. The selection will
be made by lot.
Announcement that an alternate
juror will be chosen was .made by
Judge J. M. Wilson, who Is trying the
case, yesterday, when Dr. J. H. Fits,
county health officer, reported that
Pnrr, who Is suffering Influenza,
would be confined to his quarters for
ten days. '
Observance of Washington's birth
day prevented the resumption of the
trial today. When court opens tomor
row, Parr will be excused from Jury
duty, the new juror will be named and
the defense will resume presentation
of its case, according to the program
Success Depends j
Minneapolis, Minn., Feb. 23. Suc
cess or failure of private operation of
the railroads of the country depends
upon the liberal administration of the
present railroad legislation, Ralph
Budd, president of the Great North
ern railroad told members of the
Northwestern General Contractors as-'
sociation today at their annual con
"The amount of credit the railroads
will be able to obtain during the next
few years will determine their success
or failure." said Mr. Budd. "In my
opinion the failure of the railways to
obtain sufficient money and credit to
make needed improvements ana
vide adequate service will mean the
end of private ownership."
liances. A score of democrats Joined
with the republicans in cheering the
pronouncement that the "great rule
of conduct" for the United tSates
-was to have "as little political con
nection as possible" with foreign na
tions. An innovation In the day s obser
vance was the decoration of the
Washington monument with the flags
of the 48 states and a pilgrimage
to Mount Vernon by the Southern So
ciety of Washington. The program In
cluded an address by Former Speaker
Clark, of the house of representatives
and the laying of a wreath on Wash
ington's tomb. 1
republican platform should contain.
Chief among these were;
, "Perfected ' Americanization to be
held rejoicinly American hereafter."
r Adequate national defense with an
ample navy as a first line of defense,
world leadership in aviation, stronger
army than heretofore and voluntary
military training for young men.
Repeal of every extraordinary war
End of bureaucracy "crowned with
Opposition to government owner
ship and nationalization of industry.
Curbing of government extrava
gance and "get to thinking again in
millions instead, of (incomprehensible
Government subsidy for the mer
Sailors Rescued '
. After Drifting In
New York, Feb. 23. After
having drifted helplessly for
two months in the schooner-
Rostellan with Its rudder gone,
its sails carried away and the
hull leaking, the captain and
eleven men were brought here V
today by the American steam-
er Weep Water,, bound from
Genoa, which picked them up
460 miles east of Bermuda
February IS. The Rostellan
was bound from Loango, Afrl-
ea, to Liverpool with a cargo
of palm oil and Ivory w hen she
met with misfortune.
WAGE PROPOSAL OF
Washington, Feb. 23. President
Wilson's proposal for settlement of the
railroad wage controversy and the
comprise railroad bill, pending in the
senate, were bitterly asasiled In the
conference here today of the railroad
union officials and grievance commit
tee men who were called to Washing
ton to discuss the settlement' policy,
laid down by the president.
Indications were that perhaps a ma
jority of the union leaders would de
mand that railroad labor stand to
gether in an appeal to the president
to veto the Cummins-Esch measure
because of tis labor provisions. Some
regarded It as destroying all progress
made during the negotiations with Di
rector General Hines toward a settle
ment of their demands for higher pay.
Representatives of the fifteen or
ganizations concerned in the settle
ment proposal met in secret session in
as many different halls. Their pur
pose was to formulate their own views
by majority rule and later meet In a
general conference. Heated arguments
which were admitted to have develop
ed In virtually every meeting, were ex.
pected to be continued in the main
With Being Head
Of Drug Sellers
Vancouver, B. C. Feb. 23. J. J.
Wing, Chinese, was held by police
here today while an Investigation was
made of charges that he is the head
of a ring which has been selling drugs ceded by presentation of statistics cat
to customers in Vancouver, Seattle,' cuated to indicate what he called the
Tacoma, Butte, Spokane, Denver and "heartbreaking underpayment" pf
other cities. school teachers.
Police raided Wing's house yester
day and reported they found drugs
estimated worth over 120.000 at
wholesale, secreted beneath the floori
of a bedroom. The officers reported!
transiatea leuers iuunu in ?im
rooms contained orders from several
cities for drugs quoted at from $75 to
jso an ounce.
The officers said that during the!
hour and a half they were n WmiR T Plckptt, drlver of tne Hotel
house they received about thirty reported an accident
calls for drugs. The calls can, from Saturday night
all parts of the city and the parties Bellevue street,
who made them were impatient when;" lztn ,nd , .
the police, who answered the phone. A horse drawn vehicle, in which a
put them off with excuse, while they!n. man Bnd " ""
, .v i ' , Mri dren were riding, was struck a glanc-
t0WI hg:'thneampol.ce daa.ddrrmet.me.;ing blow by the bus. and that no on.
use. the Chinese name of Chan Chlnjwa, Injured, was con.idered fortu
The officers said the drug haul was; "ate by thow who witnessed the dr
one of the largest ever made on tmv
SENATOR PENROSE IX.h .
Philadelphia. Feb. 23. Se-nator
Boise Penrose left today for "The
Bungalow" on Ind'an river. Florida,
after being ill at hi shome nere tor
nearly two months. The trip is e.
made in a private car.
Declares: Injection of Treaty
Issue Into Campaign Would
"Obscure Pressing Domes
tic Questions at rolls .
Baltimore, Md., Feb. 23. Herbert
C. Hoover, former food administrator,
declared today in an address at Jons
Hopkins university his opposition to
making the ratification of the treaty
with Germany an issue in the presi
dential campaign. He insisted the in
jection of the arguments for and
against reservations would "obscure
our pressing domestic issues by conflict
over a question in which the country
already has made up its mind," and
added, "it is my impression that there
is no party credit in this position."
Hope for immediate ratification of
the treaty -rested, he said, in the ac
ceptance by the "lesser reservation
ists" in the proposals of the "mild res
ervations." The two combined, he
said, could secure ratification,
"It also appears to us," he continued
"that even from the point of view of
the lesser reservationiBts they .w 11
have secured all of the major func
tions and values of the league. For
my part, if the league cannot prove Its
value under the latest proposals of the
'mild reservationists' it will never
prove them under the proposals of the
'lesser reservationists.' "
The present danger Europe is tun
ing, Mr. Hoover said, Is not so much
a revolutionary catuclysm as ..e
"steady degeneration of the standard
of living and the slow decay of the
forces of stability."
Restored productivity, he insisted, Is
essential If the allies are to receive the
maximum reparation. "Until then we
shall not have real peace," he said.
"It will be delayed as long we hang
the treaty In the air for we are a part
of It." .
Charges Petty Quibbling. ',
"It would appear to an outsider that
both sides were in agreement on all
the great major Ideas of the league
and the major Ideas of reservations,
but that they are in disagreement
mostly over secondary questions In the
reservations. In the meantime the
world Is held In suspense. Inflnttn
misery goes on accumulating. Forcea
are set iu motion that many yield new
conflicts. Already the distrust and un
dermining of confidence and credit In
I the wohld has crippled our export
Regardlg the part of the United
States will take in the rehabilitation of
Europe, Mr. Hoover counseled moder
ation. "eW have two extreme views
among our people," he said upon tin.
policies we should adopt in all the
matters. One contends that the Ideal
is Isolation of Europe to herself; the
other contends for at least moral dom
ination as a mission of international
Justice. Many of us want neither ex
treme." Holies for Ratification.
Assuming that the treaty would be
ratified "some day," In "some form"
he reached a hope that It might serve
to bring about a reduction of ail
ment and the "development of engiui
of conciliation, of arbitration and
codes and courts of international Jus
tice." Except where the interes of the
Uniled States are vitally concerned,
Mr. Hoover declared himself as op
posed to American members on t
missions provided for in the treaty for
the settlement of questions recom
mended by the war. The loaning- i
money except to alleviate d'stresi was
also opposed. "Our best assistance n
healing Europe's economic wounas
lies In the promotion of the great pro
cesses of private commerce," he said,
"not In loans from our governnif nt."
Mr. Hoover's reference to the peac-
treaty and Its ratification were pre-
'J Uftirf Df I irrh-f
l USVIILG JI L,lgll
A 1 C D ....
t S. P. Drivewa
HI J. I Ul lVZ,WU,y
Avoiding a serious accident only by
.......i.,-, t, .i,.
This is one of many mishaps which
have been reported from this locality,
the cause belnjf an entire absence of
light at this point. Drivers who use
the driveway to the Southern Pacific
depot have reported to council mem
bers and to the police that the dan
trerom condition exists, but to date
j no relief has been afforded by the
For Big Campaign
Columbus, Ohio, Feb. J. Plant for
the national, and state campaigns
were sizsllng here today in connection
with the Washington's birthday ral
ly of Ohio republican.
Of major importance among the
events was to be reorganisation of
the Ohio Republican Editorial associ
ation, perfection of the state league
ot republican clubs, and organisation
of the republican - women ot the
Major General Leonard Wood, re
publican candidate for the presiden
cy, had carried the tight Into Ohio to
day by filing his declaration ot can
didacy for the republican presiden
tial nomination and also a statement
authorizing candidates tor delegates
to pledge themselves to his support
at the republican national convention.
AUTO; ACCIDENTS ON
STREETS HERE GROW
The Increase of auto accidents In
the city is noted by records at police
headquarters Monday morning. Sat
urday night and during Sunday four
auto collisions or accidents were re
ported to police.
Saturday evening Mrs. W. E. Kurtz
1105 Leslie street, reported that the
machine she was driving collided
with another at the Intersection of
State and Liberty streets. The other
car did not stop. Mrs. Kurtz's ma
chine was slightly damaged.
Woman is Hurt
A woman, whose identity ha not
been determined by police, was
thrown to the pavement and slightly
Injured Sunday when she stepped
backward and in front of an auto
driven by Frank Borgelt, route. 3, Sa
lem. The accident occurred near Lib
erty street, on State, Mr.- Borfreldt
told polloe. He; gald that he thought
the womart was clear of the matMne
when she" suddenly stepped baok and
Into the fender of the car. She walk
ed to a nenrby drug store and pro
cured liniment for her bruises.
Boy Run Down
Wholly Chenoweth, a small boy
residing at 700 North 16th street.
narrow escape from Injury
ounuay wnen a umyuio no w iiu-
lng was struck by a swiftly Passing
miln Tha mil a slid nnt at rrt (ho lorl
V, , ,
torn ponce, wno i sum wmt .i
Uirguil incline liuiii uri iauv. hid wt'j
escaped wunoui any n.jmy, uul in
oicycie was oaa.y oaumgeu.
rauuy paring requirements w - httd becn the tradlalonal method of
trlbuted to be the cause Sunday of aldt c(mtr0, Tts UBP how.Ver. pre
clusion on State between High and ' ,npp0Be normttl conditions and these
Liberty streets, of an auto driven by
D. Takagl. 445 Ferry street, and E.
Roberts, Vidlng a motorcycle. The
collision occurred wnen lanagi una
Roberts strated their machines at the
same time, Takagl swinging the
poslt direction Roberts was going, i
causing the machines to come to-
gether. Both machines were damaged
But neither Takagl or Roberts were
Wilson To Make
nlL f' O (
lUDllLy IXC pi)! I
Washington, Feb. 23. The notes ex-
the entente powers on the Adriatic
question will be made public by Pre.l-,
dent Wilson within a few davs It was
aent wuson wunin a icw aays, it was.
stated today officially.
The nubllca -
tlon, it Is understood, will be mude
with the consent of the foreign gov
It Is expected that the notes will be
given to the public as soon as tho
president's latest reply to the entenU
premiers is delivered. It will be sent
to Ambassador Davis at London who
will deliver it to the premiers.
No visitors will be admitted Into
the state prison here until the pres
ent Influenza epidemic has abated, ac
cording to Instructions Just issued by
Warden L. F. Compton. There are no
Influenza cases In the penitentiary yet
and the quarantine order is made
with the object of keeping the dis
ease out of the Institution, according
to Compton. . j
The ban is still up at the state hos
pital here where, reports Indicate,
there has been no material increase
in the number of influenza patients
since this emergency action was taken
a wtek ago. '
JOHNSON TO BIGGIN
CAMPAIGN MARC H 1
Sioux Falls, 8. U, Feb. 23 Senator ,
Hiram W. Johnson of California, i
dependent fc-pulA'can candidate for j
president at the March primaries will j
open his South- Dakota campa'gn j
March 1. It was announced here today. J
Senator Johnsin will deliver only four;
speeches on this trip, but will return
to the state Just beforje election for an
other series of speeches, it Is said.
RESTORATION OF PRE-VAR STATUS i
IN INDUSTRY TO BEAnc ;PHD THRU :
WliT Of RESERVE SYSTEIi
Board Announces Determination "To Test
Ability Of System To Check Expansion
And Induce Healthy Liquidation? In
Annual Report Made Public Today.
Washington, Feb. 23. Determination of the federal reserve
board to exert the full power of the reserve banking system in
regulating and-controlling the credit situation, a course designed
to aid commerce and industry in restoring a pre-war equilibrium
was disclosed in the board s annual report, made public today.
The board was prepared to test I
(he ability of the system to check
expansion and to Induce healthy li
quidation." The . board explained it
was aware ot the Implied power to
rectify the condition which con
fronts the country. This power neces
sarily followed the authority for and
employment ot an elastic system of
reserve credit and note issue. It was
Recommendations also were made
to congress for amendment ot the re-
erv act which would permit reserve
banks to establish normal maximum
lines ot credit accommodation for
member banks. An ascending scale
of rates would be provided In event
money was borrowed above the max
imum line. This, the board believed,
would work to the end that credit
expansion on a large scale would be
Warning was given that the coun
try must guard against too rapid de
flation. It whs pointed out, however,
that some remedies employed to con
sequent deflation might create con
ditions worse than Inflation itself,
i "Deflation merely for the sake of
deflation and a speedy return to
'normal' deflation merely for the sake
of restoring socurlty tallies and com
modity prices to tlielr pre-war levels
without regard for other consequenc
es would be an Insensate proceed
ing," the report said.
Must Control Credit
"It must never be forgotten that
modern business is done on
credit. One of Its lifo giving princi
ples If credit. The ultimate test ot a
credit system must be found in what
It does to promote and Increase the
n.niliiAdnn n anniim Pi.ii. In aAMAwnt
truth of ob,orvatlon delerv.
n.r,.or n,ilnlnrf I-
t deranged state of world
I Industry and ttjade when production
"',, tne crylnK need ot the hour every
j exp)lmaHon of fts increase in
discount rates, the board . said this
It was pointed out, do not all exist at
this time. While a high reserve bank
rate was shown to act nn a r entrain -
; ,ng lnrIuBnc9 upon borrowings, It
y ttttract creait from other cen.
op-'tera u H ths condltloti, among oth-
ers, that was said by the board to
imnratlv the nan of Its now.
er , controing credit and starting
In checking expansion, the board
declared much depended upon co
operation of business and the commu
nity generally. "There Is, however, no
need for drastic or precipitate act-
' ion" the report continued. "There
,neei be no ap-prehenslon as to our
ability to affect the transition from
war time to peace time conditions if
reasonable safeguards against the
abue of crem nro respected. Our
-economic and financial posit Ions Is,
" the bottom, safe and sound. The
iProcges oi nujusu. . .u.
credit to a normal basis should
effected In an ordorly mnnner."
A plea was made for complete ab-
orptlon by Investors of
" . ,u.
these pass into the hands of perma
nent holder and the national debt re
duced tho operation of the sinking
fund, thero gradually will come a
(Continued on page two)
Capital Journal's Straw Vote for President
Vote for One, placing X after name; then cat oat and mall or bring to
Capital Journal Office. -
COX . PALMER .
JOHNSON . TAFT
LOWDEN 1 WILSON
FULL HONORS PAID
HEHOBY OF PEARY
AT FUNERAL TODAY
Washington, Feb. 23. The body
of Rear Admiral Robert"' E.- Pearr.
discoverer of the north pole, was laid
to rest In Arlington national ceme
tery today with full naval and mili
tary honors and with high officials
of the officers of the government and
diplomatic corps present. There cere
monies were in charge of the navy
department and Captain Carroll Of.
Wright, chaplain at the Washington
navy yard, conducted the rellgtoua
The casket was carried to the cem
etery on a gun limber, draped In the.
national flag which Admiral Peary
raised at the north pole. A troop of
cavalry and a battery of artillery
formed the military escort which
led the way, while a long procession
of official and private automobiles;
carried the distinguished piournera
to the graveside; At the' cemetery a
company of bluejackets fell Into line
with the army escort and the thre
volleys of the, last salute wore ttrert
by a squad of sailors from the presi
dential yacht Mayflower. ' A navy
bugler sounded taps. '
The honorary pall "bearers Included
Vice President Marshall, M. Jules
Jusserand, French ambassador; Chief
Justice White of the supreme court;
Speaker Glllett of the house ot rep
resentatives; Secretary Daniels and
Assistant Secretary Roosevelt; Secre
tary Lane, Rear Admirals Colby M.
Chester, M. T. Endlcott and C. W.
Parks; Gilbert Grosvenor, president of
the National Geographic Society; Al
lan R. Hawley, former president of
the Aero Club Of America; Captain
Robert A. Bartlett. Vlllijalmur Btef-
ansson and Donald MacMlllan.
MURMANSK IS TAKEN
BY BOLSHEVIKE AND
SHIPPING IS SIEZED
London, Feb. 23. Bolshovk forces)
have seized Murmansk and shipping
In the harbor there, foltowlag a rev
olution which broke out at that port
Saturday afternoon, according to a
Lloyd's dispatch from Vardo, Nor-
way. rntur . brought
News of the capture fought
(to Vardo by a Russian steamer, it
n the nn v vessel to escape seizure
be but was riddled with machine gun
. -- ... .,.
fire and the captain was wounaea.
Murmansk Is situated on the Mur
man or Kola penlnsdla, Jutting east
ward from Finland and north of th
White sea. It Is northwest of Arcn
angel. Last year Murmansk was the
base of operations for allied forcea
fighting the bolshevlkl along the west
em shore of the White sea.