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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 10, 1921)
edford Mail The Weather Maximum yesterdayy!.......43 Minimum today 19 Snow JiZ Inch Precipitation 05 Predictions Fair and colder.' Daily Fifteenth Tear. Weekly Fiftieth Year. MEDFORi), OltEGOX, MONDAY, JANUARY 10, 1921 NO. 248 M Tribune LUMBER TRADE BY GOVERNMENT; COMBINATION TO HOLD UP PRICES IS CHARGED Report by Federal Trade Commission to Congress Informs Pub lic for First Time That U. S. Department of Justice Is Hot on Trail of So-Called Lumber Trust Correspondence Is Quoted to Show Combination to Maintain" High Prices and Curtail Production West Coast Lumber Association In volvedTremendous Profits in 1920 Shown by Report of : Investigators. WASHINGTON, Jnn. JO. Tho de partment of Justice la to proceed "vig orously and expeditouBly against vio lators of tho Sherman anti-trust aet connected with certain Important lines of building material,' "it was an nounced today by Frank K. Nebeker, nuslstant to the nttorney general. TACOMA, Wash., Jan. 10. A con ference of lumber men of this sec tion, held today to discuss the charges filed before congress by the federal 'trade commission, mado public a statement asserting that the lumber industry will wlecome a full investiga tion and declaring that the conditions complained of were the result of gov ernment orders. , "The lumber industry of tho North west would more than welcome a thorough investigation of the activi ties of the industry during and after the war," tho stntcment reads. "The industry in tho Northwest was the only district forced to an eight-hour day. The spruce division and the fir production board set working hours, wages and lumber prices until after the armistice.". , Visited Puget Sound. . SEATTLE, Jan. 10. Three repre sentatives of the federal trade com mission spent six weeks In Seattle last February and 'March in an investiga tion 'of the sites and records of the West Const Lumbermen's association, It. D. Brown, assistant secretary man ager...of the -association, said in a for liittl statement 'today- The associa tion, "the statement said, had request ed that it be Included in the proposed investigation of the national lumber industry. ; In connection with the report of tho commission ' transmitted, to congress today it was said that price lists by certain regional associations was "an established practice," the statement safd the West Coast association, "does not issue price lists or like data, other than tabulations reflecting actual past sales of members." WASHINGTON, Jan. 10. A general investigation of the lumber industry, particularly for the yellow pine indus try of tho south, is being conducted by the department of justice to determine whether there have been violations of the Sherman anti-trust act. This became known today after the federal trade commission had trans mitted to congress a copy of a report on the activities of organizations of lumber manufacturers, which it has prepared at the request of the depart ment of justice. Report to Congress WASHINGTON, Jan. 10. An exten sive investigation into the activities of lumber manufacturers through their national and regional associations is being made by the department of jus- tlve, with the assistance of the federal trade commission. This is disclosed in a report sent to day to congress by the commission In connection with the inquiry being con ducted by the senate committee on housing and reconstruction. The re port, the commission says is designed to show the activities of the manufac turers and their attitude towards "na tional legislation, amendments to the revenue laws, elimination of competi tive woods, control of prices and pro duction, restriction of re-forestralion and other matters." It is set out that the regional asso ciations have formed the National Lumber Manufacturers association with headquarters at Chicago. West Coast involved The principal regional associations listed as constituting the national as sociation nre the Southern Pine associ ation; West Coast Lumber associa tion; Western Pine Manufacturers as sociation, Western Hemlock and Hard Woo Manufacturers, Northern Pine Manufacturers association; North Car olina Pine association; Georgia-Florida Saw Mill association; Southern Cypress association; Michigan Hard wood Manufacturers association and the California Sugar and White Pine Manufacturers association. The commission informs congress that the national association has been "very active in legislative and depart mental affairs which affect this indus try," it adds that L. C. Boyle, a Kansas City attorney, with headquarters in Washington "is employed to attend to such matters for the national associa tion," and that he also represents many of the regional associations. The report says the national associa 10 BE PROBED tion appointed a committee upon "gov ernment relations," the function of which was "fully outlined" by Mr. Boyle in a letter dated May 5, 1919 to Charles F. Keith, president of the Southern Pine association, which the commission quotes as follows: . Letter Is Quoted "To my mind the outstanding oppor tunity your committee has to serve the Industry and also the country at large Is to so mobilize its units that they may be in a position to more adequate ly defend themselves against the de structive tendencies of the hour. The result can be aided by the industry be ing kept fully advised through your committee of governmental activities political, legislative and departmen tal that have for their direct or in direct object invasion of constitutional guarantees! 'It would be unwise to spread broad cast the plan of organizing your com mittee and this especially if the organ ization is to be comprehensive of the industry, because the very magnitude of the plan would challenge attention and arouse suspicion." Numerous extracts from correspon dence, said to have passed between officials of regional organizations, are given in tho report to support the com mission's charge that issuance of price lists from time to time was an "estab lished practice." Eliminate Competition The correspondence quoted involves the West Coast Lumbermen's associa tion; the Western Pine Manufacturers association; the Association of Hem lock Manufacturers and the Michigan Hardwood association. The report contains documents in support of further charges that the association hud consistently sought to eliminate competition not only in prices but in competing woods and also to restrict production in the Inter est of price levels. Contained In the report is a table showing "average realization, average costs and average margin a thousand feet of the KKnsas City group of Southern Pine manufacturers for the years 1915 to 1919, inclusive, and aver age price and margin for May 1920 as compared with average costs for the first three months of 1920." This table shows that in 1915 the realization was $1.09 below cost; that in 1916, it was $1.98 above; in 1917 $6.42 above; 1918 $6.41 above; 1919 $8.94 above and in May 1920 $26.35 above . - - $50,000 INAUGURAL PASSES SENATE BY- VOTE OF 285 10 5 WASHINGTON, Jan. 10. The sen ate resolution appropriating $50,000 for expenses at the capltol in connec tion with the inauguration of President elect Harding was adopted today by the house by an overwhelming major ity. An amendment by Jtenresentative Blanton, democrat, l-exas, to cut the fund to $10,000 was defeated 2S5 to 5 Another attempt to simplify the ceremonies was made by Senators Borah, republican, Idaho and Norris, republican, Nebraska. The former in troduced a resolution to prohibit fur ther congressional appropriations or use of public buildings for Inaugural balls while Senator Norris proposed an amendment to prohibit transporta tion here of troops or cadets. Declaring that it was proposed to hold "the most costly and ostentatious inauguration ever occurring in the his tory of this or any other country," Mr. Borah's resolution referred to reports that there were 2.325,000 unemployed in the United States and 3,400.000 chil dren in Europe destitute and said that the republican party faced a national debt of $24,000,000,000 and a treasury deficit was pledged to economy. The resolution went over until tomorrow. LAWRENCE. Mara.. Jan. 10. The American Woolen company otday an nounced a wnge reduction of 224 per cent to take effect next Monday. Gay Lathario Killed By Girl He Thought "Too Cute to Shoot" - DALLAS. Texas, Jan. 10. Wil- Ham J. Coleman, restaurant pro- prietor whose death has been a mystery for ten days lost his life at the bands of a girl he believed "too cute to shoot," according to the authorities. Miss Louise Meier, 18, a typist, arrested yesterday, confessed that to protect her honor, she shot Coleman, according to J. C. Gunning, chief of detectives. Coleman was found in a park un-4- conscious from a bullet wound In the abdomen on the night of January 1. She said she nccom- panled him to tho deserted park on hiB representations that a party of friends was camping there. ' I told him to turn mo loose or I would shoot him," Chief Gnn- nlng quoted tho girl's statement as saying. "Ho said I was too cute to shoot. So I pulled the pistol, and shot him." :'"".'.'., "-' . .",' T WAITS ON U.S EXCHANGE M Revival of Trade With South America, Mexico and Orient Depends Upon Lower Value of U. S. Dollars Conditions in Orient Critical. VVASHliNUTUlv, Jan. iu. lienor trade conditions between the United States and South America and the Far East cannot be expected until low rates of exchange and labor conditions In foreign countries have been im proved; according to a summary of world business made public today by the department of commerce. The statement was the first of monthly summaries the department will Issue. In virtually every country of South America and the Fur East imports have fallen in the last few months and money has become very hard to ob tain, the department said. Australia was reported to be await ing lower prices before buying. The Japanese financial condition is most "unsatisfactory," Commercial At tache James F. Abbott cabled from Toklo. He predicted a severe drop In the Japanese exchange rate and said banks have tightened the money mar ket by raising rates. Japan, he said, finished the year with a large balance of trade against her and there are large stocks of unsold goods in ware houses. The general stagnation, he said, has brolight about a situation which will'. fjgBtlj'tl'.'l&i tha.dcutting .of wages.' ",,,'!'.(",,t'v' . i Failure of many .business houses In China is, foreseen by Commercial .At tache, Juloan Arnold ;at Peklng,"who cabled' that 'the ancient Chinese cus tom of paying all debts on the , hew year, February 8, Will force , many' places to close. In Chile bath exports and imports were reported to be de creasing and the exchange rate is un improved. Great care should be exer cised in granting credits, the depart ment was advised. ' Commercial Attache Carlton Jack son reported that many business fail ures were expectedln Mexico, and that the money "market 1b unfavorable. He asserted government finances were unsound, the cost of living was In creasing, and the lowering of wages had begun and unemployment was general. I, PHILADELPHIA, Jan. 10. Women are growing taller and heavier, accord ing to "Dr. R. Talt .McKenzie, director ol physical education at the Univer sity of .Pennsylvania. "Statistics of women's colleges cov ering a period of sixty years show the average college irl of today is an Inch taller than the college girl of 1860," he said. "These statistics also prove the modern girl Is six or seven pounds heavier." Dr. McKenzie attributed this in crease to the increased interest In sports and outdoor life. PITTSBURG, Jnn. 10. Another re duction In the purchasing price of crude oil following the reductions an nounced Saturday was made In Corn ing grade today. The new price is $3.75 a barrel, a cut of 25 cents. BETTER RAOE I BOND CROOK IS SUICIDE John BV Milholland Kills Self When Sheriff Comes to Make Arrest Partner's Nerve Fails on Suicide Pact Makes Clean Breast In stead Pair1 Forged Bonds Valued at $353,000. '. "SPOKANE, Jan. 10. Investiga tion of tho affairs of the local bro kerage firm of Milholland nnd Hough declared in a purported confossion of .lay B. Hough: a member of the firm, to have embezzled $353,000 from .lames F. Cjilluhan, a wealthy mining man of . Wallace, Idaho, awaited the arrival of Mr. Callahan and his nttorney Trom Wallace. In a statement over the long dis tance telephone from Wallace today, the attorney, Walter Hanson, declar ed that It' there was "any salvage" his client would take legal steps to recover it. He declared that inter est payments on forged bonds of Montana nnd Oregon municipalities through which the alleged fraud is declared to have been effected, hnd always been promptly mot by tho 'brokers. Hough in Jail With Mr. Callahan, Mr. Hanson said he would arrive in Spokane late today to take up the Investigation of the alleged embezzlement. SPOKANE, Jan. 10. With the arri val here today of James F. Callahan millionaire mining operator of Wal lace, Idaho, adiUtltuial light- was ex pected to be shed on the alleged opera tions of John B. Milholland and Jay D. Hough by which, According to Hough's confession yesterday to the authorities, Callahan was defrauded of $353,000. Milholland was found dead in his room at his home here last night by deputy sheriffs, who had gone to ar rest him after his partner was de clared to have confessed to an attor ney and later to the authorities, their alleged fraudulent transactions. Hough was being held today In the county Jail In default of $20,000 bonds. Speculation Is Cause Speculation on the New York Stock Market was declared In Hough's con fession, as reported by the authorities, to have been the cause of the embez zlement which he was'declared to have said covered a period of about two years and of which he stated, accord ing to the officers, that Mr. Callahan was the sole victim. Issuance of bogus bonds ot Montana school districts and Oregon municipal ities, for the sale of which, the firm was the agent, by means of a duplicate seal and forgery of the signatures of the district officials, was the method declared to have been employed. These fraudulent bonds, according to Hough's reported statement, were given to Mr. Callahan In lieu of genuiuo bonds which the brokers had persuaded him to Bell. v Interest on the fraudulent securities, ..on Kb was quoted as saying, was paid by the firm. Fails In Suicide Pact Milholland's death, according to tho authorities, was the result of suicide, effected with a revolver while, his wife and his two young daughters by a former marriage were In the house below stairs. , He is declared to have shot himself after his partner, disre garding the terms of a surcido pa9t which Hough told the authorities they had entered Into, related to his attor ney and members of the prosecuting attorney's staff their alleged embez zlement. It was when the firm's ac count with a New York trust company had been overdrawn $26,000, which Hough Is declared to have said would have become known today, and when "there was no chance of getting any more from Mr. Callahan," that the partners agreed, ho said, to meet in their office last night and kill them selves at 11 o'clock at a prearranged signal. S Confesses Crime As the time for the execution of this agreement approached, he was report ed as Baying he "could stand the strain no longer" and made a clean breast to his attorney and later, on tho advice of the latter, to the prosecutor. J According to Hough's statement to the authorities, the bond Issues which the brokers forged and exchanged with Mr. Callahan lor good bonds, were the following: $100,000 six per cent Teal municipal irrigation, Umatilla county, Oregon. - (Continued on Page SU) State Dept. Refuses To Make Exception In O'Callaghan Case . WASHINGTON, Jan. 10. Re- fusal to waive the passport re- strlctions in the enso of Daniel J. O'Callaghan, lord mayor of Cork, who arrived from Ireland lasft week as a stowaway without a passport, was decided upon to- day by the state department. Announcement was made that 4- an opinion of the solicitor of the state department that there was no reason why an exception should bo made in the case of the lord mayor had been concurred in by Assistant Secretary of State Davis and tho decision transmit- ted to Secretary of Labor Wilson. , ASS'T SECY.OF STATE DENIES Govt. Official. Flatly Disputes Statement by Newcomb Carlton That State Dept Brought Pressure to Bear to Hold Up Cuban Cable. WASHINGTON, Jan. 10. Acting Secretary Davis denied today before a senate committee that the state de purtmeut hud brought any pressure to bear on the Cuban government to prevent the landing of the Western Union fJarlmdoes cable, us had beun charged earlier In the day by Presi dent Carlton, of tho Western Union eoinpany. WASHINGTON, Jan. 10. Charges that the state department was "miik ing threats against tho Cuban govern ment," to prevent the Issuance of por mlts for Western Union cable bindings on the island were made before a sen ate committeo today by Nowoomh Carlton, president of tho Western Un ion company. Mr. Carlton declared tho depart ment was "pursuing to the point of persecution" Its differences with the company over tho attempt to land tho cable from Hurbudoes, which he said, would establish a new lino of commu nication with Swuth America. Questioned 'mfto alleged supervision by English authorities of official dis patches sent from Washington to American diplomatic representatives In Great Britain Mr. Carlton refused to "answer categorically because it would mako trouble" The witness said the state department had tho facts and Senator Kellogg, chairman of tho committee, asked Under Sec retary Davis to uppear this afternoon. Frederick Hoy Martin, acting gene ral malinger of the Associated Press, told the committee Hint any ilncrunsa of communication, aid'liijes,. aided the dissemination of American news. "Tho 'Associated 'Press is furnishing its nows reports, to Porto Itico, HaWr all, Alaska nnd Mexico-,'' lib itald,""ann has eoao ivory extensively 'Into South America, i Our reports on tho Pacific are,, sent., by radio, and incidentally f-oplpd for freo distribution, to Japan imd, China. This is an unprofitable field and we nre keeping It up for pa triotic motives ot maintain tho connec tion between tho United States and its possessions." South American renders, Mr. Mar tin snid, desired news from tho Unit ed States and tire only difficulty in the service was tho lack of cable fa cilities. Senator Kellogg asked if tho government could usnlst news distil, button. "Only by facilitating private Inter ests in extending cable facilities," Mr. Martin replied. "Tho Associated Press docs not want any government sub sidy. Wo should llko to sec direct cables to Italy and tho Scandinavian countries. . "Wo have had our troubles with government censorship during the last few years. I will say for our English friends that their censorship Is no narrower than our own. Only Inst Saturday we found fhnt tho navy de partment was censoring a dispatch from San Francisco. -x "It has been a keen disappoint ment to us to find that American cables to South America could not give us sufficient facilities nnd we have been forced to contract with the English Western company at London, to carry a million words n year to our South American papers." U. 8. Steel Orders Drop NEW YORK, Jan. 10. Tho monthly tonnage report of the United States Steel corporation, made public here today, showed 8,148,122 tons of unfilled orders on hand December 31. This Ib a decrease from last month's unfilled orders, which totalled 9,021,481 tons. HELENA. Mont.. Jan. 10. Notlc if a bill prohibiting tho exhibition ot motion pictures "tending to incite to crime or corrupt mornla" and provid ing for a county board of censors was introduced In tho state senate today. CHARGE chargesTpjoSkontrol of american railroads has COST PUBLIGJANY MILLIONS B. M. Jewell, Prest. Railway Employees, Tells Railway Labor Board Roads Under Control of 12 New York Banks Domi nated by Morgan Has Filched Public Through Cost Plus Contracts of Millions Wow Combine Is Forcing Public to Pay Costs of Open Shop Campaign Rail Heads Before Board Object to Continuation of Labor Agreements in Force During War Want Separate Control. .' CHICAGO, Jan. io.The railroads huvo brokon faith with tho public ac cording to charges today at the open ing of the hearing by tho railway ltibor hoard into demands of tho rail road brotherhoods that tho national boards of adjustment be re-estalilish-od. Tho charge was mado that B. M. Jewell, president of tho railway employes' department of tho Ameri can Federation ot Labor. Tho employes' louder charged that the public had been defrauded "prob ably in violation of crlmlnlul stat utes," of millions of dollars through cost-plus contracts with equipment companies, "controlled by tho same 'banks that control tho railroads." Ho said that rallroud control is ex orcised by a group of 12 now York hunks, trust companies nnd Insurance companies "dominated by J. P. Mor gun and company nnd that only 25 men are the instruments of this and an oven wider control. For Open Slion Ho added that this same group of bunks has interlocking directors with 2 0 ot tho leading cqulpmont con corns and that 80 per cent of the railroad mileage of the country Is un der tho domination of this "Morgan steel combine." ' One result ot steel contracts with tho equipment concerns, he argued, hnd beon to throw out of work moro thnn 50,000 skilled railway em ployes. He asesrted that this unem ployment was "created deliberately at a most inopportune time, causing suffering and discontent Just when public interest required tho utmost confidence and harmony in tho rela tions ibetween capital and lnbor." Mr. Jowell asserted ' that "this same combine has beon forcing tho public to pay excessive prices In pay ment of the costs In the open shop campaign In the building industry of New York." Ho charged that tho allogod combine "Ib using this power to force the public to pay for tho nttempts of the combine to disrupt the organizations of rallroud em ployes." , nnllroudN Oppose Control. CHICAGO, Jan. 10. Tho national agreements 'between the railroads and various clasBos of their omployes, standardizing tho lattor's rules and working conditions throughout the nation, which were Instituted within six months before tho end of federal control, .should not. In tho Interests of "honest, efficient and economical management," lie continued longer, undor private oporatlon, according to contentions made by roprosbntn-' lives of the railroads before the rait road labor board hero today during hearings on the demand of railroad employes for the perpetuation of these agreements. "The only parties who are fully qualified to consider such l-egula-tlons are tho individual managements nnd their employes," 13 T Whltlor, chuirman of the' manager's commit tee which Is presenting the carriers' side of the controversy, testified. Reasons Given The reasons for tho carriers' op position to the national agreements were outlined by Mr. Whiter as fol lows: 1 They are ultra restrictive and therefore prevent the "honest, effi cient and economical management demanded by the transportation act. 2 Th variable conditions in dif ferent sections of the country mako the universal application of their provisions Impracticable.-- 3 The existing rules, the contin uation of which is proposed by the men, are capable of various con structions. 4 The existing agreements pro vide that the rules contained therein shall apply to all employes of any particular craft, regardless of the de partment of the railroad in which the man Ib employed, thus leading to a division of jurisdiction and a con flict In the working rules applicable to employes engaged in the same work. 5 Tho existing agreements havo destroyed acknowledged efficient and economical practices such as tho piece work system for regulating rates of pay. 6 The railroads must have relief from' the rules controlling the em ployment of men, which are ao re- striotive as to prevent them from ob taining a sufficient number of em ployes in certain departments, thus interfering with output and causing delay to the movement of traffic. 7 Tho agrements contain many rules which provide for payment for work not performed and thereby cause many millions of dollars of un necessary expense annually. ' "The railroads do not object to schedules (the technical term for railway agreements) properly nego tiated and entered Into with their own employes." Mr. Wniter said, "as Is evidenced by the fact that nearly all, if not nil of the railroads repre sented by this committee , have had, schedules with the various train ser vice organizations for many years. Might Hour Basis 1 ' . 1 "Those roads which have 1een working on the oight hour day basis, will continue' to do so unless chang ed by mutual agreement with their employes, but they must hove the right to re-establish more efficient and economical practices. "We rofer, among things, to piece wo: It methods which were abolished. . ThM notion has cost many millions of toilers to the roads which had for ye,ii3 successfully produced much of tho! - output by the piecework moth--ods." ' LEGISLATURE IS SALEM, Ore.,, Jan. 10. The thirty-first biennial session of the Oregon legislature opened here today. In the senate there are 27 republicans., one domocrat and two independents. The membership of the house la composed of 58 republicans and two democrats. Governor Olcott delayed the reading ot his message Until to morrow morning at 10 o'clock. ' ' Senator Rltner and Representa tive Bean were unanimously elected -with the exception that 'Ritnei4' by ' courtesy voted for 'Senator Eddy; ! It became definitely known today that Senator Banks of Multnomah bounty will be chairman .ot the com mittee on resolutions in the senate; that Senator Patterson of Polk and Benton counties will be chairman' Of the wayB and moans committee; that -Senator 111111 of Marshfleld -will lead tho senate roads and highways com mittee; that Norblad of Clatsop will head the committee on fisheries; Moser the Judiciary committee and Eddy of Douglas the committee on revision of laws. . Sheldon on Committee ''. A motion to appoint a temporary committee on rules and organization was passed and Temporary Speaker K. K. Kubll appointed Representa tives Herbert Gordon, 'Multnomah; Denton O. Burdlck, Deschutes; B. N, Hurd, Clatsop; Thomas Kay, Marlon, and Ben Sheldon, Jackson. At 10:45 the- house adjourned to meet again at 2 o'clock. - - ; . Senate posts filled were: -.- ;,!.'. Walter L. Tooze, reading clerk; Colonel W. O. D. Mercer, Eugene, ser geant at arms; H. T. iBruce, Multno mah county, door keeper; R. 8. iMc clanahan, Multnomah county, assist ant doorkeeper; Leland T. Brown, Douglas, mailing clerk; . Albert B. . Goddard, Umatilla county, calendar . clerk. Ill MIJAP BILL SACRAMENTO, Cel., Jan. 10. The assembly of the California legis lature today adopted unanimously Senator Inman's resolution asking that no treaty be madp with Japan ' granting citizenship to Japanese, or nullifying the provisions ot the new anti-allon land law. - It was the first measure to pas both houses ot the legislature. OPENED, OLCOTT'S MESSAGE DELAYED