l 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