Medford mail tribune. (Medford, Or.) 1909-1989, January 08, 1917, Image 1

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Medford mail tribune., January 08, 1917, Page 1, Image 1

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Newspaper Page Textl it ' nr v Medford M ail Tribune FORECAST Tonight imil Tomorrow HAIX. weather Forty-sixth Year. Iially Klevcnlli Yrar, LIS NIKE VAGUE CHARGES F Stock Broker Accuses Every Depart ment of Government of Leaking to Wall Street, But Declines to Give a. Source of Information Adjudged in Contempt of Congress. WASHINGTON', Jan. 8. -Thomas V. Lnwson occupied much of (inlay's session ol' the house rules committee hearing on the alleged stock market leak on President Wilson's peace note with a running row with the commit tee which ended in much of his state ments being expunged from the rec ord and concluded with the declara tion that lie could tell where the leak was, but wouldn't. Describing it first as a suppositous ease, but Inter staling it had been told to him as a fact, I.awson pictur ed a United States senator, cabinet officer and New York banker having a joint stock gambling; account, and ilividiug tiic profits among them. II declined to Rive names because he did not know them of his own knowled Supreme Court Also. "What did you mean?" asked Hep- vesentativc Campbell, "when you re ferred to supreme court leaks this morning?" ''I meant Hint advance lufiirnitilion regarding decisions pot to the street and that it might have come through officers or attaches of the court," said T.nwson. "Did you menu to include, the jus I ices?'' "Oh, no." Lnwson told Hie committee that a member of congress had told him a member of the cabinet had speculated on the falling: market caused by the leak, but he flatly refused to stive the committee the name of the cabinet memher or or the incninev ol congress who told him. "Who told you that, and who wn the member of the cabinet-?" demand ed Representative Campbell. "I am not going- to answer," said Lnwson, determinedly. Representative Campbell declared that the committee had the power to compel him to answer. "When I say that the name was given to me in confidence on honor, not to be repeated, do you still insist upon an answer?" asked I.awson. "Yes," said Campbell. Is In Contempt. "Well, 1 shall not answer," said I.awson. "It seems lo me that it could serve no good purpose: lo use the name of a high official of the government at a time when it might bring serious consequences to the (Continued on Page Two.) NO OFFER FOR Mayor Knicriok stated today, in rc iird to the printed circular being distributed, assorting that Keelor liros., Iioml buyers ol' l)enei', stated that they would purchase the bonds it' the Medynski bonds carried, that no such offer was on record, and that Keelor Tiros, slated that they would "probably'' make u bid on the bonds. They have not, however, offered lo hid upon the ifllOlon refunding bonds offered for sale April 1 by the city, nor has any other bonding house, and that nil the replies so far received state that no bills will be forthcom inar pending; the issuance of the .Me dvnski i-sue. 0 HELD ILLEGAL W. Ihe undersigned attorneys, are confident that the Medynski amend ment is n violation of the constitu tion and would be inoperative if voted. A. K. RF.AMKS. K. K. KKI.I.Y. P. J. XKKF. GI S NKWIU'IIY. T. W. MILKS. O. C. Itot.ii.i.s, REFUSES PR Li 1 DENIES KNOWLEDGE 0 L Secretary of State Testifies About Handling of Document After It Got to State Department Details His tory of Peace Note and Confiden tial Talk to Newspaper Men. WASHINGTON", Jan. S. 1SHW tin1 rotijire.- iimial ciiminitii'i' pi nliin the iillctii'! "li'nk" to tin- stuck mar ket of (lit prt'siilt'tit's pt'iift noti Si-r- ri'tary Laii-intj today said: "Posil'lv hail hotter tiirl by stilling tliat 1 assume tlmt 'oiifiden tial coiumiuiiea lions between the preMi Ii'ii t and myself are not a part at' the ii;(iiiry. I run i;ive yon u physical history ol" the note. The draft of the mite was received by me from the white house at ! o'clock Monday afternoon, i called Mr. l'olk, counselor ur the department, and Mr. Woolsey, law advisor, at tached to my office, and discussed tlie three forms in which the note had to be prepared and set forth. I then handed it to Mr. ooley, enjoining to the strictest secrecy that he nulit take it to the three confidential stenographers. There it was to be prepared and delivered to Mr. SiU iiiiin, chief of the index bureau. Outlines Vroreilin-e. 'The index clerk continued ihe secretary, "was to encipher the note and said thai it would take so lung to cipher the three notes that he would have to have an assistant. T directed thai he engage his most confidential man for the work. He did so, was uiveti the copies, and the two men locked themselves in the room. They were given the copies at 8 o'clock and at 2:30 Tuesday niorniuir, De cember 10, the notes were enciphered, delivered to the telegraph room and sent. "On Tuesday afternoon T discussed with the president the time when the note should be made public. The reason for secrecy was the courtesy due lo the nations who were to re ceive the note that it should not ne published here before they received it. 'We decided it would take atjenst two days for it to reach Austria and Rumania, and we decided it should lie made public tin Thursday morning. Tuesday evening about G o'clock a ropy of the note was handed to Mr. James, chief of the information bu reau, lie at once took it up with the printing office.'' Journalists Told or It. "It was read by one man and then sent to the printing office. (Continued on Page Five.) MARKET Owners of Vacant City Lots on Paved Streets Sole Beneficiaries Under Medynski Plan ShowiM" that owners of vacant lots on pa veil streets, and not the rhoine owners, are the only possible l.cne I'i.-iaries under the proposed Medyn ski seh("ne, which creates a debt, of approximate! v .f 1.000,000 as a lien against all property to settle a debt of $.r.2;iM atrauist property benel'iled bv improvements lorciiu;- even the owner of improved pmpcrtv on paved streets to pay more for his paving through taxation than he would otherwise pay. DKSCRII'TION Improved property on Paved street, Main and Central, hot 1, blk. i, Vacant lot. on pr.ved street, 2nd and (i, blk. 03, O. T House and lot on tin paved street, 711 hot i, blk. 3, Wolter Add Stock of Merchandise Vacant lot on unpaved street Factory The above figures are based upon an assessi'd valuation I'nr Medford of Jf-l.000,000. The levies are assumed constant for city, operation 10 mills, librarv 0.9 mills, school 10..") mills, state ami county Ki mills; total :!7.t mills. These figures prove conclusively that the only pro'perty benefited by the Medynski plan is the vacant unimproved .f on ihe pavinir. MEDhXiRD. Out of the Medford with Medynski bonds Average 11 Oregon cities .Mcdl'ord with Medynski bonds Average 11 Oretron cities Original cost .. Cost under lanson plan Cost under Medvnski scheme.. SUPREME COURT WASHINGTON'. .Ian. 8. The Wfhli-Kcnyun law, dcMiim-it to pre vent li(iior shipment from ''wet'' to "dry" states, was today declared con stitutional by the supreme court by a vote ol" 7 ti which also upheld West Virginia's prohibitum amend ment, prohibiting eiti.ens from re ceiving liquor tor personal use. ship ped by common earners in interstate commerce. It was announced that .Justice Mc Reyiiolds concurred in the decision, but not completely in the opinion. Justices Holmes irml Yiindcvenler were the two dissenting justices.- "Tiic all-reaching power of jjovem ment over liquor is settled," said the chief justice in announciim his decis ion. "Then; was no intention of con gress to forbid individual um of li quor, The purpose of this act was to cut out by the routs the practice of permit tin; violation of state liquor laws. We can have no doubt that congress has complete authority to prevent paralyzing of state authority. Congress exerted a power to co-ordinate the national with the state au thority." Attorneys for national liquor or ganizations who were in court said the decision upholds and applies the Wcbb-Keuyon law "in its broadest sense." Wayne K. It. Wheeler, counsel for the Anti-Saloon league of America, who, with Fred Tllue, state prohibi tion commisioncr of Wot Virginia, ariiued the cac before ihe court, Assessed Total amount taxes 1 ft 1 7 Valuation Medynski Plan S. W. Cor O. T. XI.'oh.wu q-M, h.).ii Holly, lot :ilo.oo 100. I(i Palm st. 1,000.00 l.'JOl.'J") 0,000.00 (5,021.20 j""-)0 320,12 :,uoo.oo :..(; 12.7.") OKKOOX. MONDAY. .JANUARY S. 1917 Frying Pan Into the Fire COMPARATIVE MUNICIPAL L1)K1!TK1NKKS COM PA RATI V K PHI i ('API TA I N I K 1ST COMPARATIVE COST OF PAVING On Average Home Assessed at $2000 E P.KKI.IN, January S. Russian troops made another attack yester day with strong forces on the north ern end of the Kusso-Galicinn front, near the Unit of lllga. Today's of ficial statement says the Russians succeeded In gaining more ground on the Aa liver, hut were elsewhere repulsed. field Marshal Von Mackcnsen has broken through the strongly defend ed harrier before the liiver Sereth, which the Russians had constructed at Fokslianl, has captured that lm portunl Kumaiiiau town and taken nearly 4,000 prisoners and three guns in the process. The Russians also have lost ground further along the .Moldavian frontier between the Putna and Olluz valleys, Berlin announces. Towards the Dan ube from Fokslianl, however, the lat est reports showed a Russian offen sive of some importance, which ad mittedly had succeeded in gaining ground from Von Mackensen forces. On the Franco-Belgian front, pa trol nnd aviation operations, are fea tured in the war office statements. Berlin reports considerable aviation activity and announces the bringing down of six hostile air planes during the lay. niaih' this staleincnt on the court's decision: "The states may now prohibit the possession, receipt, sale and use of intoxicating liquor and not be ham pered by the agencies of interstate interference.'' to be paid in Saving to Tax to 1:I7, Inc. Hanson Medynski Plan Plan 7 1. 1 ;, i 0H1.S7 oT-J.il n:?.V0 -I.177.o0 8:!,V ,f()(i.-")0 :H,i;s!.;(io i; i r )!i;: K I IN KSS IMS 200 ,!):,l BULLIS OFFERS 10 RELEASE CITY FROM T; "The best Interests of Mcdl'ord will be served by the adoption of the HniiKon plan and the rejection of the Medynski plan," stated S. S. Ilullis, president of the Southern Traction Co., who lias just returned from New York. "What we want to do is to provide ways of getting out of debt and paying debt, not of get ting further In debt. 'if it will help in straightening out Modford's financial tangle, the South ern Oregon Traction Co., stands ready to release the city from its con tract to build the Blue hedge rail road. W'V do not desire to hamper the city and realize that before wo can prosper here, tbo finances of the city must bo adjusted to make .Med ford an attractive place for Invest ment. "In my opinion the Medynski plan will only further complicate the situ ation and hamper all of us in our ef fort to develop Medford by develop ing the back country and its re sources." Directors of the newly-formed Applegate Lumber Co., nlso express themselves to the effect that the adoption of the Medynski scheme will hamper their efforts to secure a box factory and complete their plant. SI'KIXOFIF.LI), HI., .Ian. N. A budget system anil consolidation of stale administrative agencies were emphasized as needs in the address which l-'rank (). Lnwden delivered to day on the occnM'in of his inaugura tion address as governor. Payer Hanson Plun Relative Cost Per $10(1 Valuation In 2 Years' Taxation , Fnder Two Plans. .Medvnski 1J0 ,mmmmmmmmmmmmm Hanson f ill) BHHaHHmn .Medvnski 1 -0 mmmmmmmmmmmmmmmmmm 1 lansoii 2S7 t. - i - .i"j ::iw.7i .Medvnski . t 1-0 Ml Jlaiisnh .Medvnski 120 pjpi Hanson . s:: mmi .Medvnski $120 . Hanson . $ - .Medynski Hanson , h:5 1,81:5.7.") :ii;.s7 1,20(1.2.") TUMULTY DENIAL OF LEAK PROBE ISTSIEPING President's Secretary Issues General and Specific Denial of Having Known Anything About Peace Note or Having Given Out Information Never Speculated Himself. WASHINGTON, .lull. S. Joseph I'. Tumulty, seeretnrv to President Wll- ison, hocked with mi eni-orsoincnt by JuU; l'resiilent Wilson, made the following statement to. the house rules coiu inilltce probing the alleged "leak" of peace note news to Wall street: "I appear before this committee to resent the unjust intimation that I gave Information lo Mr. H. M. liar- uch. In regard to the so-called peace note sent to the Kuropean bolligor- enls last month bv the secretary of state. Tliis intimation was contain cd In a statement made to this com : niittec bv Representative Wood of Indiana, a man whom I do not know. I To the best of my k:iovledgo I have never met .Mr. Wood. Certainly he made no effort to find out the truth from inc. hei'oro dragging my name into this affair. (ienernlly unit Specifically. "I wisli to deny generally and spe- t'iflf-o llv thai I envo advance iuforma 1 II I. .... . ,.,l.,lv elfe In regard to the peace note. did not know of the existence of tills note or that tills government content plated the dispatch of such a nolo un til after printed copies of the note had been given to representatives of the press by Ihe stale department was not consulted in the preparation of the note by the president or by anybody else. The conferences and cointuunlcalions relating lo tho draft ing of the note and its dispatch were confidential between the president nnd the secretary of state. I knew nothing of them ' whatever nor did any other person employed in the ex ecllllve office. "I have had no correspondence, written or telegraphic, with Mr. Bar uch or anybody representing blni, re garding this matter. ) have had no telephone talks Willi Mr, Baruch or anyhody representing him regarding this matter. I have never talked with li I in or anybody representing him, or with anyone else publicly or private ly, with regard to this matter. .over -Mel Itiiriuil. "Apparently the only insinuations made against mo are that I lunched with or met .Mr. Munich at the Hilt more hotel 'it or about the time of the preparation of the president';! sug gcflion that the Kiirepim belligerents (Continued on Page Five.) Maximum Yesterday 45; Minimum Today 2(1, I- i i It. NO. 24 ADAMSON LAW SUPREME COURT 3 0 18 Government Asks Annullment Judge Honk's Decision and Dismisr sal of Case Contends Law Is Con . slittitional and Sanctioned Already by Branches of Government. WASHINGTON, Jan. S. The ell. ix of the legal contest over const! tutlonality of tho Adainson law wan readied today ill the supreme court Arguments were begun In the Mis sourl, Oklahoma and Gulf railroad'u test case. In which the department o justice is appealing from Fedora, Judge Hook's decision at Kansas City Mo., that the law, passed last faep tomber when a nation-wide railroai strike seemed Imminent, Is "uncoil stitutlonal, null and void." Conclusion of tho arguments lnti tomorrow is expected. A decision It expected within a few weeks at most Tho railroad's brief contended thai. the law Is unworkable, experimental;-; Incapable of application, tntorferer with liberty of contract, does not fal within congress' authority to rogUQ late Interstate commerce and take;, railroad properly without "due pro ' cess" of law. ;-. The arguments were begun bj counsel for tbo department of Jus tice which lias sole charge of the do-, fense, the railroad brotherhoods uol appearing officially. Annullment of Circuit Judge,' Hook's decision holding the AdamsoC law nneonsliliilioual nnd dismissal ol the railroad's suit was asked in tin "b if brief uf Ihe department of justice, Annulment Asked. As an "hours of service" act tun also as a wage law, the federal hricfcB contended the law is constitutional-! within tlie power of congress to en act ami workable, luferelitiiillv tin brief argued thai compulsory nrbitrii-1 tion legislation such us is under con siilcralion is also conslilulional ii behalf of public' interests to prevent tie-ups of transportation facilities. Praclicability of obeying the law, the brief asserted, has been ildmitted again and again by railroad offi cials, particularly in hearings before nigressional committees last August anil in ciuifcreiiccs with President Wilson. "All assumed Hint Ihe mere cluing from the established and well-under slond ten-hour standard day to the proposed eight-hour standard (lay was all I liu I was necessary or in- Icndcd,'' the brief slated, citing that S," per ccnl of employes affected arc now cniilnycil on u Icn-hour basis. Ailmilling thai n rigid eight-hour day for train operation is not com pletely practicable, the federal attor neys said Ihe Adanison law should be enforced, al least so far as is pos sible. Plan Const it ut ional. "Two co-iiriliiiale branches of Ihe government have been evidenced to the opinion that the plan is eotisti-, tiilioual," the brief continued. "Cer tainly this ciiiirt will not stake down the law under mere prophesies of its workability. "The infringement of Ihe principle of Ihe contract does pot u licet Un law' validity, nor tlie assertion thai, congress enacted this law from im proper motives and upon uiisiif ficicnt iul'urmatiiiii. "Wage regulation has a vital con nection wiih inter-slate commerce. Congress' power is ample chough to authorize direct cniilri'l over the wa (Continued on Page Two.) STATE ATTORNEYS Wp, the undersigned attorneys wph to assure the people of .Medford that there Is no merit In the techni cal objection raised by the city nttor ney, with respect to the necessity for an enacting clause on tlie proposed Hanson measure. A. K. ItF.AMKS, P. J. NF.FF. O, C. HOGGS, T. W. .MlhlCS. CI S NFWHFRY K. K. KKI.I.Y. BEING ARGUEDIN