Circulation The Weather OREGON : Tonight and Satur day fair; moderate westerly winds. LOCAL.: Westerly winds: clear; maximum yesterday 88. ciinfinum today 62; river -.9 feet and sta tionary. ournal Average for 1920, 6260 Pnnulatlon of Salem 190 1900. 4258: 1Q10. 14.094: 1920, 17,679 tfarlon County 1920. 47.177J Polk county, 14,181 Member of Audit Bureau of Circu lation. Associated Press Full Leased Wire 'FoTtThirdYear No. 180 Salem, Oregon, Friday, July 29, 1921 Price Three Cents f TVLXIH3 wa KING CALLS EDITOR U Capitaiihi AD fill Protests of Hotels Related Oregon Innkeepers Object to Paying Double Rates for ' Phone Systems increases ?n telephone rates ranging from 50 percent to more than one hun(lred Percent with M corresponding improvement in ,ervic rendered form the basis for complaints registered by Ore gon hotel men, who are appear ing before the public service com mission today in the interest of a downward revision of its rate schedule of last February. The hotelmen's delegation Is represented by Lawrence A. Mc Nary, Portland attorney, and in cludes F. W. Beach of the North west Hotel News; H. M. Bran son. Morris and Madras hotels; B. C. Cornell, Alexandria Court ho tels: Mrs. E. J. Campbell, Campbell-Hill hotel; E. Robe, Hotel Hoyt; G. Hill, Washington ho tel; C. Van Duyn, Carlton hotel; A. H. Meyers. Oregon hotel. Escaped Previous Raise E. C. Cornell, manager of the Alexandria Courts hotel, the first, witness to take the stand, testi fied that the recent rate order had Increased his telephone expense b? 82.40 percent which he de flared to be unreasonable. On cross examination Attorney Shir for the telephone company, brought out the fart that the ho tels had entirely escaped the rate Incraase of December, 1919, and bad been only lightly touched by the order of May, 1919. Cornell declared that a hotel should be permitted to make at least eight percent on its invest- j ment, but thought six percent enough for a corporation the size of the telephone company. He ad mitted though that the corpora tion was entitled to a return on its Investment. Growth of Hotel System The growth of the telephone systems in hotels from its small beginning of a few years ago was reviewed by Shaw who pointed out that now a telephone In ev ery room was regarded as a nec esstry convenience in every mod ern hotel. This accommodation to its patrons. Shaw insisted, should he Paid for by the hotels and not spread out over other patrons of the telephone company. ' A. H. Meyers, manager of the Oregon hotel, told the commission that his telephone bill had been Increased from $173.45 to S330.25 a month by the recent i re order which he regarded as estirely out 0f proportion. The toll business originating ln his hotel and from which he as supposed to receive a cora tt'ssion of 15 percent. Meyers de did not so prove out. Bad 0ehts ami losses from various urceS mnrp than offgpt thjg com sion the hotel guaranteeing the telephone company the toll on all long distance calls. Mrs. CamnHll ... . .. m hotels produced figures tot now .ncreases approximating 8t 1 "WM in the telephone bills of er two hotels as a result of the i february rate I It,, . , wilii. no in- Oil and Gold Finds In Alaska "u", ."MasKa, July 29. Ported discovery of what is said) Beai. i- i : ui seepage on Uor, Ch0rage- with the4ndie- ill,0? a'0nE ,ne government , has ,ent a flood of stam- 5 1E, the dto to stake theM !rea in ,he vicinity of A"ii7e , in ln rai,0a', thr,tirl n aPPtly au- rT" here' a" eighty ,0Ot d of $oo to the ton has covered in the northern 55 cm dis- Bnh if Anchorage Woman Who After Hurting Two Men Here Arrested The second chapter In a story i which, officers had feared, was ended, opened this morning when saiem ponce were notified that I Mrs. Edith Grebe, of Spokane, is under arrest at Ashland. It Is rather an unusual story, the kind you seldom hear. There are several characters. His ankle broken, unable to work or even move about. C. W. Finn, a Portland-Salem stage; 'driver, and one of two men run down last Sunday by an automo i bile driven by Mrs. Grebe, liesi confined in a local hospital. The j Other man, J. R. Newton, 1553 ! I State street, sustained minor In juries when, working by a sta tionary automobile near the Val ley Packing company, he was hurled to the pavement by Mrs. Grebe 8 car. Slipped Out of City Police say that Mrs. Grebe, with whom they talked immedi ately after the accident, promised to appear again Monday morning. She said she would visit the in jured man at the hospital, and added that she would not leave the .city until a satisfactory disposl I tion had been made of the case. Officers, who took her at her word, did not arrest her. Early Monday morning Mrs. School Board Faced By Problem ; Should Indians Pay Tuition? Should Chernawa Indians be permitted to attend the Salem high school without paying the custo mary tuition fee exacted from those students who are not resi dents of the city? Filipinos are permitted to. Oth er schools of Oregon and Califor nia, accor3ing to Harwood Hall, superintendent of the Chemawa school, make no charge for the In dians. The practice, he says, is ob served only in Salem. The problem at present facing the Salem school board is pecul iar. In the past the United States government paid the $95 demand ed from each non-resident. Now comes the government, ostensibly with a view to cutting expenses, an announces it will not provide the fees. Chemawa land is not Jap Decision Meets Approval of British Press London, July 29. Heirty ap proval is expressed by several '-n-don newspapers this mornin over the Japanese government's decis ion to accept President Harding's invitation to discuss limitation of armaments and tho Far Kastern question. The Times in a lengthy editorial says: "Japan's best friends fccew Ikkl she would accept the invitation. but the fact that lier a'eptance now is actually on record is a re lief to all who realise the riani lude of the issues. wltS which the conference will be confront, d ' The editorial concludes wi'h the bope that "friendship, tried and proved in alliauee nay be broad ened and deepene I in greater un ior that will be a sure bulwark for peace." The Daily Telegraph says that an agreement between America. Great Britain and Japan inai eiik s rnnfwenre is desirable, "is the best news which has gladdened the world since the guns rtasei firing in Europe and it looks as though before long we shall net need to contemplate with misgiv ings, activities in the shipyards of the Un ted States and Japan." Took His Bed to Grave. Poplar Bluff, Mo . July 29. -Brown Hughlett, Howell county pioneer settler, has been buried with a feather mattress in his ruMe home-hewed coffin. He was garb ed in his night shirt as be entered the ' long sleep." These oddities of his fuaeral were in eompWeance with his last request. Grebe, who spent Sunday night at the Salem camp grounds, stole quietly out of the city in her au tomobile. No word was left with officers. No message was sent to the .crippled victim in the hospit al. No letter was received follow ing her departure. Reckless Driving Charged A complaint, charging her with careless and reckless driving was prepared Immediately after It was learned the woman had disappear ed, and telegrams were sent broadcast. At first it was believ ed she had returned to Spokane, and officers there were notified to arrest her, should she be ap prehended. No word, however, was received until this morning. Ashland officers have been or dered to hold Mrs. Grebe pending the arrival of a local officer. She will be returned, to Salem and arraigned in the justice court be fore Judge G. E. Unruh. Finn and Newton were repair ing a tire when struck by the Grebe car. Mrs. Grebe told offi cers that she was forced to run into the two men by the untirJrly arrival of a third automobile pi loted by John Baker, of Hood River. Mrs. Grebe was driving to ward Salem when the accident occurred. taxable, being owned by the gov ernment, and consequently the fees cannot be paid by any coun ty. The school board needs the money. Its proposed budget re jected, the $1235 which would be exacted through fees from the 13 ,Indian students in attendance I here, could well be used. But must each Indian dig up the $95 jfrom his own pocket? Br. H. H. Olinger, fi member of the board, said this afternoon he favors allowing the Indians to at tend school here free of charge, j Chemawa, he declared, means much to Salem, and Chemawa In dians should be considered. The matter has been made a 'special order of business for the , board to consider at its next meet ing. 80 Percent of Waste Due to Management New York, July 29. Idle men and machinery are causing a loss of nearly a billion dollars a year in the metal trades industry, says a ronnrt issued todav by the com mittee on elimination of waste ln industry of the American Engi neering Council. Modern employment methods, embracing the study of "why men quit" are urged. "We have 2,000.000 unneces sary 'separations,' the equivalent of 2,000,000 workers annually sep arated and re-hired," says the re port. "Manufacturers." the report adds, "can undoubtedly hasten a return to normal conditions by producing goods as economically as possible so as to make selling prices low enough to attract buy ers." It is estimated that about 80 per cent of the responsibility for waste, or non-production, rests with the management. "Remarkable and very favorable results have been secured in labor relations and in improvement of efficiency simply by establishing frank and open conferences and free interchange of opinions, usual ly in genuine open .-hops (shops In which no prejudice or discrimina tion is allowed to exist either tor or against men who do or do not belong to labor organisations and some times by collective bargain ing and dealing with a shop com mittee to which is delegated all re sponsibility for keeping the men to agreements, fairly made be tween management and employes)." British Note On Siiesia Amicable Friendly Reply Sent France No Danger Thretening French Troops Now London, July 29. The ra.--versy between the .British, and French governments over JSilesiu has reached an acute stage, the latest British note drafted by Earl Curzon, the foreign minister, en dorsed by the imperial cabinet and handed the French' government in Paris this morning, being official ly described as "vigorously word ed" document. Paris, July 29. Great Britain's reply to the latest French note on the Upper Silesian question, in which divergencies still exist be tween tbe two nations as to the procedure to be adopted In deal ing with the problem, notable as to the sending of reinforcements to the area, was delivered at the for eign office this morning. It was announced that the cabi net would meet this afternoon to consider the British reply. London, July 29. Great Brit ain's note to France regarding the Silesian problem, despatched last night refutes the allegation that Great Britain had set herself against the French and was there by strengthening the German at titude. Officials describe the note as of a friendly character in "marked contrast to the attitude displayed in the French note" to which It is a reply. Officials declared that ac cording to the news being received in London there is no danger threatening the French troops in Silesia which renders the sending of reinforcements urgently neces sary as the French have claimed. The note calls attention to what is described as the "extraordinary action on the part of France" in endeavoring to act Independently of the supreme council in insisting upon the immediate despatch of troops. It points out that this is an impossible basis upon which to pursue any future policy together and that no good purpose would be served by further discussions until there was a clear under standing of France's intentions. Baseball Confession Excluded Chicago, July 29. The prosecu tion in the baseball trial today be gau its closing arguments, aban doning a previously announced plan to put Joe Gedeon, a former St. Louis player, on the witness stand. Edward Prindivllle made the first argument for tbe state. Fighting desperatyly in a final attempt to tighten the grip q he law on tbe defendants, the state today twice met defeat when Judge Friend barred an alleged confession from "Happy" Felsch that he received $5000 to throw the 1919 world series and tenta tively denied the prosecution's at tempt to recall David Zelcer of Des Moines. Iowa, another defendant, to the witness stand. Felsch's statement was alleged to have been made to a local news paper reporter JugJ, after the first indictments. The state maintain ed it had just learned of this state ment but Judge Friend held that it should have learned of it long ago and that "negligance in the state's attorney's office should not jeopardise a defendant's liberty." Murders Woman Then Shoots Self Portland Ore., July 2. Mrs , Anna Baira. 43, was shot and In-, stantly killed late last night at her home by George Sbepard, a carpenter, who tnen turned the gun on himself with fatal results. Sbepard infatuation for Mrs. Balrd and tbe latter'" indifference to bis attentions led to tbe trag edy, according to stories told tbe police by friends of tbe woman. Chlnamea as a race are reputed to be the mot' honest man ln tbe matt Portland Winner In Rate Case Interstate Commerce Commission Orders Rates to Puget Sound Increased Washington, July 29. Despite the refusal of the Washington state public service commission to act in the matter, the Interstate commerce commission today order ad intra-state freight rates en grain and grain products moving from Columbia river basin points to Seattle, Tacoma and other Pa cific ports increased to the level In effect on similar interstate traffic The order supplements and makes final interstate commerce decisions temporarily held up for the state commission's investiga tion and is effective Sept. 28. The fixing of the Intra-state rates results from the federal com mission's endeavor to deal with rate schedules in the territory known as the Inland Empire where competition between the Washington ports and Portland and other Oregon porta is Involved Ition for separate parleys with any State Refuses Compliance. 0f the powers invited to particl Seattle, Wash., July 29 Action' te ,n lhe conference on lrmlta- of the interstate commerce com- mission in ordering lntra-siaie freight rates on grain and grain products increased in accordance with the Columbia basin decision, wu. resuu. m tu .-.u,. .u , & ftJ con,erence. some form of action to dtferm ne. S(,cret Haghea conUnue l0 jurisdiction of the commission with regard to rates within the,; ' , , w.k,( h h no. the newer phase of the inter- . ... . . , ' -' ' ,, land, assistant director of the state. department of public works, said In a long distance telephone con versation from Olympia, Wash. today. The department of public works, Mr. Cleland said, in order suspension of increased intra state tariffs filed by railroads in accordance with the Columbia basin decision, took the position that the "Shreveport principle laid down several years ago by the that the United States would re commisison and which held that;gard it as a discourtesy to those Intra state rates conflicting with not invited to attend and one Interstate rates must be revised to that might well arouse the suspl the level of the later, did no apply : cion of powers left on the out to the Columbia basin case. side. To call such a meeting by "There is no intention on the some other name would not. It part of th'e department of public j was Informally and unofficially works, as far as I am aware, to declared, greatly alter Its statuii cancel the suspension order," he gince it was declared to be possl aald, "at least until the Interstate i,e to recognize a conference with commerce commission is formally, the naked eve. Communications adjudgpd to have jurisdiction." Fraud Charge Filed In Court Charging that John Peyree transfered his property to J. B. PHeyree in order to cheat them out of the $900 judgment awarded them in a recent trial before Judge Kelly, of department No. 1 of the circuit court, Mark S. Skiff and Joe M. Graham filed suit this morning asking that the transfer be cancelled. The case originally grew out of a sale of a tractor by the plaintiffs to Peyree for which he agreed to pa $900. On failure to pay the plaintiffs brought suit, the defend ant holding that the engine was in poor condition. Testimony was brought before the jury which awarded the plaintiffs for the judgment asked. To avoid pay ment of this judgment the plain tiff contend lhe John Peyree made his property transfers to J. B. Peyree. Peru Submits British Dispute to Arbitration Geneva. July 29 The Peruv ian government, In accord with the British government, has re qaested the Swiss federal trlbu-. nl to act as arbiter in the dis-, nute between the two countries concerning the boundaries of cer tain petroleum vell . In Peru. I These wells belong to an English company with headquarters In I Canada. Switzerland has consent ed to act. The five highest cities In the United States are LeadTllIe, Colo.. Cripple Creek. Colo.; Laramie. Wyo , Santa F, N. M . and Cbey- enne, Wyo. J Northcliffe's Interview "Complete Fabrication" Declares King George To Discontinue Forest Blaze Patrol of Air Medford, Ore., July 28. Ac cording to officials of the local forest fire air patrol, an order has hoon rwpv,.(1 to discontinue all air patrol service in the state for! the time being.' No reasons for; the order are given. U. S. Reject Suggestions For Parleys Washington, July 29. It was indicated today that the United statea would reject any sugges- ,, , arrnament and discussion of Far Eastern questions. There was an intimation that at least I euggested the advisability of such one of the nations concerneu nan changes between the governments ."s . ana as t0 iion. na,1 pre- lliminary conrerencs ue neiu oi an (the invited powers. It has been made clear In an Informal way, however that the United States is convinced that no real benefit can come from such pre-confer-ence discussions. If a suggestion for a parley of a part of the conferees had been or should be made, It is known between the powers as to the daje for the conference are proceeding Club Fund Now Reaches Over $4000 Twenty-eight new members have been reported by committees working on the membership drive of the Salem Commercial club bringing the total funds now on hand to over $4200. Twelve of the new members were reported at the luncheon of the committees work ing in the drive at today's lunch eon In the auditorium of the club rooms. At a meeting next Thursday the entire fund of $6000, whkh Is to be used to defray tha. expenses of the organization until the end of the year, Is expected to be report ed In. "I am mighty proud of you men who are working in this drive," stated T. E. McCroskey, secretary and manager of the club in speak ing to the committeemen today. "But I am more proud of the Sa lem business men who have come to cur support so readily when conditions are not the beat." Thenew members added to the list are: H. L. Moore. F. A. Kurtz,, Fred Kirkwood, C. A. Kells, J. J. Evans. Joseph Hamman, Miller Mere, A. L. Frazer, G. E. Unruh. Charles Anderson, D. H. Mosher, I Henry Lee, Associated OH, JohnJ Iliper, Skagga Store. M L. Meyers.' n I MrRride. Dr. B. Blatchford.l Oreeon Theater. Salem Auto Top, company. Homer Smith, Rex Shin ing parlors, Fred U Walker, H I Pohle It Son. J. B. Cooley, F. W.I Turner, N. D. Elliott, W. Tecken. Peat production In the United States for t:) was 71,204 short tons. "No Such Conversation As Alleged Ever Took Place Nor Were Such Remarks Made by His Majesty" Says Monarch In Reply to Asser tions of Celebrated British Publisher London, July 29. Prime Minister Lloyd George in the house f commons today read King George, declaring words cernimr the covernment'a Irish nolicv in a rpnnrted intor- view in the United States by Lord Northcliffe, who controls the London Times, are "a complete fabrication." Mr. Lloyd-George read a state-1 ' 1 ment which he said the king had authorized him to read on his ma jesty's behalf: "His majesty, the king, has had his attention directed to certain statements reporting an Interview with Lord Northcliffe, appearing in the Daily Mail and reproduced in the Daily Express and some oth er newspapers. The statements contained ln the report are a com plete fabrication. No such con versations as those which are al leged took place, nor were any such remarks as those alleged made by his majesty. "His majesty also desires It to be made quite clear, as the con trary is suggested in the inter view, that ln his speech to the par liament of northern Ireland he fol lowed the invariable constitution al practice relating to speeches from the throne In parliament." After reading the statement the premier concluded: "I hope this statement may do something to Bterilize the effects of the criminal malignity which for personal ends is endeavoring to stir up mischief between the allies, misunderstanding between the British empire and the United States and to frustrate the hope of peace In Ireland." The Interview to which the pre mien referred quoted King George as saying to Premier Lloyd-George just before his majesty left for Ire land : "Are you going to shoot all the people In Ireland?" to which the premier was quoted as replying: "No, your majesty." "Well, then you must come to some agrement with ihem," said the king, according to the Inter view. "This thing can't go on. 1 can't have my people killed ln this manner." Northclifiefi Alibi. Washington, July 21,. Lord Northcliffe made public today the following cablegram sent to Lord Stamfordham, private secretary to King George: "Please convey to his majesty with my humble duty my denial of ever having ascribed to his majes ty the word or words as stated by the prime minister yesterday. 1 gave no such interview." Dinner Is Cancelled. Washington, July 29. All Washington was talking of the in cident '4 the failure of the British embassy to entertain Ird North cliffe, lyondon publisher, and the latter's statement last night stat ing that he was unaware of rea sons for the embassy's cancellation of invitations for a dinner to bave been given in his honor last night Lord Northcliffe today was a guest at a local hotel. He said he was consoled since at a dinner to be given by Mr. and Mrs. Edward B. M' I .ran tonight he would meet cabinet members and others prom inent in Washington and the na tion. That I-ord Northcliffe views tbe incident as an outgrowth of recent editorial attacks on Premier Lloyd-George and I-ord Curson, the British foreign secretary. In the London Times, the leading Northcliffe paper, opposing the suggestion that those officials rep resent Great Britain at the Wash ington disarmament conference. Is left in little doubt by the publish er's statement. "In India, while viceroy." Lord Northcllffe's statement continued. "Iord Curzon cut off the news supply of newspapers that criti cized him and placed a social em bargo on their writers. In the prevent occasion, Ird Curzon Is not dealing with Indian natives or tbe owners of small Indian news papers." statement authorized by attributed to the kinar con Moonshiner Gets 10 Days; Fined $100 One hundred dollars fine and 10 days ln jail was the sentence on A met Wlederman, arrested for the manufacture of moonshine liquor on June 1, by Judge William, M. Bushey of the county court this afternoon. Wlederman was arrester some time later than A. Sutherlln, who, he testified, brought a still to his farm near Scotts Mill and made liquor from prunes. In his testi mony this afternoon Wlederman admitted helping make the liquor, but denied that he had ever sold any, stating that on hearing of Sulherlln's arrest, he had poured the entire quantity then In his possession out. Judge Bushey Btated that the reason for the light sentence was because of Wlederman's willing ness to put the court to as little expense as possible and further that he had rrever attempted lo sell the product of the Sutherlln still. The case of John Kayser, Prat um farmer who was arrested about the same time, Is awaiting the ar rival of Dr. Wrlghtman of Silver ton who Is expected to give Im portant testimony on the side of the defendant. It Is reported that the wife of Kayser is very 111 and that her condition has been aug mented by the charges brought against her husband, and It Is be lieved that the court will Impose a heavy fine without all sentence. Pacific Cable for Uncle Sam Washington, July 29. Con struction by the government of a trans-Pacific cable, If private en terprise should be unwilling, Is recommended by Secretary Hughes and approved by President Hard ing in letters made public today by Senator Jones, republican, Washington, author of a cable bill Allocation to the United States of the former German cable be tween the Islands of Guam and Pap was probable, , Secretary Hughes said, referring to proceed ings of the international commu nications conference. Stunts Forbidden Army Aviators Washington. July 29. Army i aviators are foi bidden to make spectacular flights or do "acro batic flying over cities or other populous districts" in general or ders announced today. Secretary Weeks said It was the Intention to eliminate danger from low flying and directed that both aeroplanes and lighter than air craft use every precaution when passing over cities and oth er crowded places. Sugar Advances. Portland. Or., July 29 An ad vance of ten cents per hundred weight ln the wholesale price of sugar was In effect ln Portland to day. The best grades of grau lated cane sugar are selling at 17 05 a sack with the best beet j product at - j. a