Medford Mail Tribune The Weather Prediction Fair Maximum yesterday 47.5 Minimum today 20 Weather Year Ago Maximum 41 Minimum 30 Dally Seventeenth Year. HaeklY Flfiy-Sooond Sear. MEDFORD, OliEOOX, SATURDAY, FKBHUAKY 3, 1923 NO. 2(18 WORKERS IN RUHR SHOW 'iBSHGHT French Report German Labor Refuses to Take Orders From Berlin and Agrees to Aid French in Getting Out Coal Magnates Alone Hold Out Against Co-operation. DUE8SELD0RF, Feb. 3. -(By the Lssoclatcd Press) The temper of he population In the occupied area Ipearrt tQ bo undergoing a change. ilchoUKli tiu indu.stilull.its and the mportunt magnates are as unnllci .bly opposed as ever to nay co -opera-Ion wfth tho French and Belgians. Not only have the railway workers esumed thoir Jobs at Cologno, Cob onz. Troves and Ludwlgshufen, as yell as on some ot the Ruhr lines, ml the Hchutz-Pollzcl at Dusseldorf tave refused to obey Berlin's order hat they Ignore the French officers nd continue to salute them. German members of tho intcrna ional commission at Undents, in the 'oblenz area, who havo been working I'ith the ullied experts In issuing ex tort licenser., quit work but when uul Tirard, tho French Ithineland ommissionor. accepted their resig i.itions nnd announced thnt ho would 111 their places with French and Ilel :lan functionaries, tho Clermans ro onsidered and romainod on tho job. In Wlttcn, where the restaurant nd hotel keepers havo been refusing rt serve food or drinks to French of Icers find soldiers, the situation has nmplctoly changed. - No discourtesy i now shown toward tho forces of ceupation. Labor Is Friendly Tho improvement iu the relations etween the foreign authorities and ha population is confined to tho .-orklng classes and to . the ...small radesmcii and shop keepers. The Tench authorities believe they have Ionic and bitter fight to wage, but opo to ;bring Berlin to terms nnd urce the surrender of tho magnates. fieneral Payot, who is operating ! evernl of the Important rallwny lines! or tho French says he Is in a posl lon to feed tho civilian population nd will soon bo nblo to transport oal to France. Food trains are Ircacly moving into districts where hO railway strlko is still effective. Speaking of tho shortage of empty oal ears, General Puyot said: 'The Ituhr district, even in nor nal times, Is the gulf into which mptles' must continually be poured. Vhan- tho . repartition coal deliveries ero affected according to schedule y tho (lermnns, 70 per cent of the mptles' noeded had to be supplied y .the French and Belgians. PLYMOUTH, England, Feb. 3.- Ily the Associated Press) An act I f' gross folly and Iho wrong way to pproach the reparations problem as former Prime Minister Lloyd leorgo'a characterisation of tho ltuhr ceupation in an interview hero todny n his return from Spain. .'It is a sure way not to get repa ittions, I think'" ho said. ?2 DEATHS AND 15 ATHENS, Feb. J. Tho steamer onia arrived at tho Piraeus yester ay with 6600 refugees from Asia Ilnor. There wero i!2 deaths from rphus nnd small pox ns well as 15 irths during the voyage. Dr. Mabel Elliott, representing the .merlcan Women's hospital, has in flected tho Ionia nnd ordered 200 lek persons, 150 children removed i tho American hospital station. The ther refugees aboard tho vessel will e debarked Inter. HUES MAKE SH0R1 EFFORT TO RE-OPEN PARIS, Feb. 3. (By tho , Asso rted Press) Tho reparations com llsslon todny adopted a resolution ustnlnlng Its own nctlon of January . In refusing Oermnny a niorato lum. The resolution was passed as reply to yesterday's protest liote mm Oermnny. Frnnee. Italy and Belgium voted rr the resolution. Great Britain ob tained from voting, ns In recent rep ration commission ballots. Germany's note of yesterday rep. wiented nn effort to renew tho tils usslon with France nnd re-open the epnrntlons controversy. It pro wled against the reparations com ilssion's decision of January ! n,ld sked thnt the commission. In ne ordnnrc with tho pence treaty, re- Lloyd George Thinks Debt Settlement Is Too Hard On England PLYMOUTH, England, Feb. 3. I By tho Associated Press.) David Lloyd Cloorfio, the former British prime minister, returning -toduy nftor his vaca- tlon In Spain said he felt Unit tho Amencon debt settlement terms wore hard and that bo was "frankly disappointed." "England Is able to pay," he said, "but It is a hoavy bur- den. I do not think it will benefit America, as It must til- mlulsh thoir markets In the world, whether hero or else- ! whore. 4 "The United States nmdo the best terms for their own coun- try. It Is not for me to com- ! plain or criticise, hut I feel that the terms nro hard. 1 still think that tlm proposula of tho Bal- four nolo aro sound." STATE TAXES TO BE SLASHED IS Walter Pierce, Chief Execu tive Full of Enthusiasm Over Legislative Prospects Income Tax Certain 3 Or 4 Mills Tax Reduction- Governor Walter N. Pierce, as genial as ever, arrived in Medford tills noon, by auto from Ornnts Pass, where ho vlsltex! for an hour, after leaving train No. 13. He wus accom panied by -Representative -Klrkwood of Multnomah county and Represen tative Ralph Cowgiil of this district. The gubernatorial party made a hur ried trip through tho Josephine county irrigation district. The gov ernor was greeted nt tho Medford hotel by Mosc Barkdull, county cbnlr mnn uf the Democratic party. Judge C. M. Thomas. Prof. Reimer of the Talent experiment station and others. Tho chief executive was -in fine spirits, and the wholesome good na ture of the campaign hns not van ished with his high honors. Ho hns a brand new sombrero, wide rimmed, given him by Bill Hanley, and missed calling but two or three by their first names when they came forth to greet him.. 'One thing I nm going to do during my administration," ho "said, is to " 'annex" southern Oregon from California. Jackson and Klamath counties nro too far out. I'm going to get them back in Oregon." The governor intlmuted that his first step iu this direction was tho appointment of Judge W. E. Crews commissioner of corporations, and "by the laws of tho game other faithful ' warhorses were entitled to consideration, but 1 went outside of the fold." "The legislature is as fine nnd sin cere a body of men as ever assembled at Salem," said Governor Pierco, "and I have had lots of experience with legislatures. They aro going to accomplish some big things." "1 look for the legislature to pnss nn income tax bill, that will net 3. 000,000, which will bo Just that much off the tax burden. Wo hnvo been the most lavish of states, in tho ex penditure of our credit, nnd we've got to settle down and pay our debts, and develop Oregon produi'ts, and buy them after they are developed. Con solidation of state offices, ns sug gested in several bills, will help by doing nway with inefficiency and du plication of effort you get the sig nificance of It." The Irrigation problems of tho stnte tho governor described . ns "a big. big problem, nnd ono in which I nin vitally Interested. It is a ques tion whether we will extend our (Continued on Page six 1 OF BERLi THE NEGOTIATIONS exnmino tho rapacity of Germany to pay. f , The speed of tho commission's ac tion on this note Is pointed to ns em phasizing tho refusol. The note was dated Thursday, It was received Fri day nnd answered today. "The repnrntlon commission, after noting the German reply on Febru ary 2, mnfntnins Its decision of Junu ary S with Its consequences," the resolution rend. The. January 2(1 decision refused Oermnny a moratorium and put In force ngnln the schedule of payments udoptcd May fi. 1921. The commission today by the same vote iinsscd a resolution to maintain for 1!24 the schedule for deliveries of wood by Oermnny arranged last1 July. , ' WORD OF GOVN R The French Entering Essen, and Their Commander IBS iJ if ffjt " f f Photo shows the advance guard of French cy lists entering lessen. Germany, as part of the French occu pation of the Huhr. These men were followed by cavalry, tanks and armored cars and the whole occupa tion went through with the smoothness of a well-oiled machine. (left) General Lamport of the 4th cav alry division, who commanded tho Frenc h troops entering Essen (right) - Oenernl licgerette, commander In chief of the French Iluhr armies. T R. R. OPERATION WASHINGTON. Feb. 3. Losses BUHtnined by the government from war time operation of railways and lt aftermath of earnings, guaran teeH nnd damn go settlement will total approximately $1,800,000,000, according to data made available to day for tho first tlmo in a report by Jumeti C. Davis, director general of railroads, transmitted to congress by President Uardlnff. , Not only, docs thtT-Ti mount como 'within congrrs plonol appropriations already 'mado, but thers will iiIho bo a return to the treasury , of about J400.000.000 In cash and railroad securities. Mr. Oavla' estimates aro based on the showing actually mado In If n nid ation of accounts between tho gov ernment and corporato owners of 80 per cent of tho railroad mileage which tho government took' over. Most of tho settlements yet to be maae are expeciea io resun in payment- by tho government in either cash or securities. Accounting in connection with tho government operation has gone through threo phases and involves the inter-stato commerce commission as well as tho railroad commission. Losses In direct operation of the roads and in tho later settlement of capital investment and other claims. as now practically completed by Di rector General Davis are shown to reach a total of $1,260,000,000, to this is added a sum of between $526, 000,000 and $000,000,000, which has or will bo paid by the commission to short Uno railroads and to class one carriers. This last amount includes payment under tho guaranteo given tho roads by congress of earnings during the six months of 1920, just after the government relinquished the properties. A scaling down of claims originally made by tho roads ngalnst tho gov ernment wan shown by Mr. Davis report. To date the roads have de manded $0r2.642.OG8 on grounds of under-maintenance, damages, loss of inventory nnd for other reasons. ITp to December 31, final adjustment liad been made with corporations which sought $713,921,814 of that total, the government having paid out a net amount of only $171,815,541. Mr. Davis expects tho balance of unadjusted claims nmountlng to $220,720,253, to be closed out by October. Only ono road has so far taken the director general's decision into court, It was added. Ono factor pointed out by Mr. Davis as facilitating the settlements hns been the ability of tho railroad administration to pay cash to car riers willing to accept an award. Government funds for these opera tions In part wero derived from pate of equipment trust securities amount ing to $274,000,000, which were left on the director general's hands after tho period of operation, but subse quently became desirable, to private Investors. I bellevo It may be confidently predicted," Mr. Dnvis report stated. that thern will ho not tn exceed a holt dozen enrriers unable tn agree with the government In arriving at final adjustment nnd there may not bo that number. From the financial showing, It Is quite evident that nn further appropriations will be required to complete this liquidation In every particular nnd it may be an ticipated with some confidence that after all liabilities of the government nf whatsoever nature arising out "f federal control have been liquidated, the railroad administration can re turn to tho treasury In collectible obligations of solvent companies nnd unexpended appropriations to nn amount aggregating about $400,000,- 000." Maintenance of tho rnllrnnd ad ministration organization which hns (Continued on Page ill.) GOV $1,800,000,000! mM 0. S. SENATE WASHINGTON. Feb. 3. Undis mayed by the rebukes administered by the Benato yesterday Iu twice or dering expunged from the record his remarks reflecting on other sena tors. Senator Heflln, democrnt, Ala bama, reviewed the whole incident today In the senate, declaring he had been treated unfalfly by the "sub sidized prons,"-and threatening steps to prevent "certain press represcnta tlvos from sitting C ,iho- press gal lery." Senator Heflln rend .to tho senate oeveiul newspaper accounts of the senate proceedings of Thursday and yesterday and enid ho bad been un able to find a single one that had a "correct description of what took place." Newspapermen BOt . In the i press gallery only hy permission of the senato, he said, and asserted that tho senate vmight have to pass Btich a law as was adopted hy the Florida legislature designating certain news papermen as ineligible to admission. "Tho uewspapers carried the mis information that I attacked Senator Wadsworth," said Senator Hofllu, re ferring to his referenco to Senator Wadsworth which; was ordered ex punged from tho record. "Tho vice president hy his ruling and not me, reflected on Senator Wadsworth.", He donled that he meant Senator Wadsworth when he said on Thurs day: "I am hero to ropresent my party: I am not here to represent tho bond sharks, the big financiers of Wall street." The ruling of Vico FrcBidont Cool Idge In declaring him out of order because of these remarks, he said. In effect directed the objectionable language nt Senator Wadsworth.- - Although tho senate yesterday ndoptod a resolution expunging from the Congressional Record tho re marks which had resulted In Mr. Heflln being rebuked ns well as tho rejoinder of Senator Couzens, repub lican, Michigan, the record today ap peared with considerable debate bearing upon the incident. COLD SPELL HIIS Tl I CHICAGO, Feb. 3. A blast of winter from the northwest that caused sudden drops of temperature In the plains states Inst nlnht wns overspreading the United States to day. From the far northwest to the central nnd southern portion of sunny Florida, from New York to San Francisco, weather disturbances of n greater or lesser degree of In tensity were reported and accompa nied In most rnses by lower tempera tures were reported In progress oi predicted for this week end. Basketball Player Is Killed at The Dalles TIIU KALLF.H, Ore., Feb. 3. Stanley lteise, 15, 'n member of the Arlington hltrh school bnnketbnll tentn, was killed hero Inst night when the brakes of an nutomohllo In which he nnd other players were re turning from Wasco, gave way on a long hill near Itufus and the machine crushed Into n bank and overturned. Other occupants of the ear suffered cuts and bruises. rnnun T TO IS S PARIS, Feb. 3. (By the Associat ed Press.) The Gorman govern- ment's note to the reparations com- mlsslon protesting against tho re- cent refusal of a moratorium Is re- gnrded by a part ot tho French press as a forerunner of German capltula- tlon and as a direct result ot French action in the Ruhr. ..-Publication of . the . nolo- -today causes commentators to remark that it presents Germany's first attempt toward resumption of exchanges with the allies. "Aa a linmii tn fta nnA nf 1nn,ll..V 13," the communication says, "tho German government suspended pay- mouts In kind to France nnd Uelglum solely because of tho Invasion which was contrary to tho treaty I of the Ruhr, by these two powers, nnd solely for the duration of this state of affairs and its consequences." "In thus acting, the German gov- eminent exercises its unquestionable ; right. The.ro cannot be a question of defuult In the senco of paragraph 17, annex 2, part S, of the treaty- of Versailles. Consequently tho Ger- man government protests against. Buch a default holng rccordod." Tho note then contests tho conclti- slon that the German request for a moratorium had become null and void. It cites the reparation commls- slon's decision of March 21, 1922, recognizing that tho financinl sllua- tlon of Gernfany did not permit of her making the specific payments for 1922 luld down by the schedule ot May 5, 1921. - It cites also the commission's de cision of August 31, 1922, express ly recognizing the fnct that Ger many had lost all her credit, Inter nal and external, In which the com mission considered 111,0 question of reducing the external charges to bo Imposed on Germany. "Furthermore," continues tho note; "each of tho principal allied powers In plans submitted to the Paris conference on January 2, rec ognized the present Incapacity of Ger many regarding payment In kind and considered the question of the Imme diate grant of a moratorium of sev eral years, In addition to a reduction of the total obligations under the schedule of payments of May B, 1921. "Meanwhile the financial and econ omic situation in Germany huB grown still worse, owing to tho occupation ot the Ruhr. The mark hus fallen to 1-10, 000th of Its pro-war value." The note declares Germany conBld ers that tho repnratlnn commission In returning to the schedule of pay ments adopted in London In 1921, Is In conflict with the former attitude of both the commission and tho prin cipal allied powers. The action of tho commission, Germany contends, contravenes the provisions of the Versailles treaty, which document makes Germany's obligations depend upon her capacity for payment and 1 sets forth that her vital needs should havo preference over her reparations obligations. "Now that French nnd Belgian troons have! Invaded tb Ruhr, and the German terirtnrv on the left bank GERMANY ABOU SURRENDER PAR IW of tho Rhine as well as tho Ruhr has dent tonight. While thero was no of begun to ho detached economically fldal statement. Indications were that and fnanclally fr.m the r!.-! or the economic organlnllon of Oer-hnrlBtnn fo,. wh(.h ,,, ,irPI,in(mt many, the Gemma government still j wm bo ul.K.d to ask of congress In less than before. Is In a position to i translating the results of tho corn meet the obligations of the London i mission's negotiations Into law. It wns said to he the president's In- (Continued on Pngo Six) Mention to send tho commissions rec Flu Germ Isolated By Rockefeller Inst. May Mean a Cure s SCI I EN ECT AD V, N. V Feb. 3. Hopes of thousands of Buffer- era from epidemic Influenza for n cure or prevention of tho dls- ease wero raised today by tho an- notinooment of the discovery of the cause and Isolation of the germ. Tho announcement Is mado hy Dr. Simon Flexnor, director of tho Rockefeller Institute of medl- 4 cal research, who attributes the discovery to Dr. Peter Olltsky ami Dr. Frederick T. GatoB, also of the Institute. The Isolation will penult ex- perlmontntion with antidotes and antitoxins. Chief Executive Refuses to Sign Inheritance Exemption Vetoed By Gov. Olcott 12 Bills Signed Thus Far Re duce College Funds' SALEM, Ore., Feb. 3. Governor W. M. Pierco hns vetoed tho bill Intro- duced by Senator Jap Upton of Prlno- vllle to exempt from Inheritance tax the $1,000,000 estate lolt by Dr. Her- hard Daly of Lakevlew as a fund for educating boys and girls of Lake county. j With four weeks of tho legislative session gone, 16 bills Have been passed hy both houses. Of these 12 have been signed by the govornor. In th.i house 314 bills havo boen lntrcn duced, two or them sluoo Monday fllfrllt vttll Hid finniYlVnl nP tilA 1a-(. lntlve committee. Forty house bills havo been defeated, withdrawn or definitely potK)ned, seven have passed both houses nnd 66 havo been passed by the houso hut not yet disposed of hy the senate. In tho senate 134 bills have been introduced and nlno of these have passed both houses, Revision of the stato banking codo providing olosor supervision nnd greater safeguards for depositors was Introduced late yosterday by Senators O. B. Robertson of Condon and W. G. Hare of Hilhiboro. The Daly estate exemption bill is tho first vetoed by Governor Pierce, His action was based on on opinion by Attorney Gonernl Van Winkle, who held the bill violates constitutional provisions guaranteeing prlvllegoa and Immilnltles. Tho Inheritance tax which tho bill would have remittal amounts to approximately $200,000. SALKM, Ore., Feb. 3. Senators Smith, Taylor, LaFoIlotte, Strnycr and Zimmerman yestordny Introduced a hill that would make the millnge tax levy for . Oregon Agricultural college, tho University of Oregon, cover vari ous extension nnd experiment nc tlvltlcs of thoso Institutions as well as tho Institutions themselves. For 0. A. C. the bill would sot aside $233, 099.37 annually for the purimse of a continuing appropriation nnd for the state university thfl sum of $135, D28.75, the amounts to be subtracted from the millage levy proceeds. The annual millage levy for the support of tho two Institutions Is 1.2 mills. (Continued on page alt. U.S. WASHINGTON, Feb. 3. (By tho Associated Press) Tho Amorican debt funding commission hos been called to meet lato today for a dis cussion of tho form of tho recommen dations It will mnko to President ii.irdlnir In connection with tho plan for fundnB oreat Britain's war time debti finally approved by tho com mission last night. It is tho hope of the commission to plaeo tho drnft of its recommen dations In the hands of tho presl- m EXEMPTION IS ALSO VETOED B GOV. PIERCE A TERRIFIC EARTHOUAKE IS RECORDED One of Worst Seismic Dis turbances in History, Re corded Throughout U. S. A. Center of Disturbance Be lieved Near Japan Needles Thrown Off Machine. RKDDI.NO, Oil.. Feb. B. lesson I'ourk, tho only etl to volcano witilin the limits of tho I nlted States was without Its iisuul winter covering of spot Icnm white an n result of nn erup tion yesterday vtiiicli was contin uing at latest reports. The erup tion at first consisted only of steam, which was mistaken for tli Ntvlrllnjr. of snow, but later wnokis billowed out In great puffs nnd nppttrantly carried with it Mima ashes, a the snow v. N darkened for Homo distance down tho mountainsides. The mountain has Iain dormant for several months prior to yos terday. NEW YORK, Feb. 3. Belief that tho earthquake recorded today on selzmogrnphs all over the country was centralized south of Japan, pos Blbly In the Philippines was express ed at the American Museum of Nat ural History. WASHINGTON, Feb. 3. A tre mendous earthquake was recorded on seismographs throughout the United States today. Its location was un certain. Father Tondorf, observer nt the famous Georgetown observa tory, said It might be In Argentine, .: hut observers at other places sug' gested Alaska, the Philippines, Japan or China, as the probable center of the disturbance. Before 1 p. m. two of the record ing needles hnd been thrown entirely off the record. ' At that hour iho quake had been in progress for some time, but It was Impossible to determine exactly when it started or estimate its distance front Washington. Indications were that tho center of the disturbance probabla was between 4,000 and 5, 000 miles from Washington, about ' the same distance as the two dis turbances recorded Thursday and Friday, neither of which has been determined as to location. , , CLEVELAND, Ohio, Feb. 3. "If the earth shocks nro on, land we may expect to hear very bad news," Father Odenhnch of St. Ignntlus Ob servatory, said today. t The shocks as recorded on his In strument, ho said belittle nny ot ro cent years. At Intervals tho seismo graph would reach high points equalled by the Mount Pelee volcano eruption In 1900. Heavy winds nnd disturbed weather conditions surrounding the observa tory prevented nny accurate rending of the instruments until tho shocks were definitely concluded, he nnld. The seismograph was still record ing tho tremors at 2 p. m Father bdenbach said, but not so violently as at noon. 's "The shocks may be ! In South America or Alaska, If on land, or In the Pacific ocean If on water," ho said. "I am Inclined to believo wo mny hear from South America Inter."- First and secondary' primary read ings of tho tape tomorrow morning will bo necessary before, the distance or location can bo estimated, he said. BAN FRANCISCO, Fob. . (By (Continued on Page Six) APPROVES DEBT up to con ommendations to congress early next week. . As announced last night after a meeting of tho commission with Sir Auckland Oeddes. the British ambas sador, the funding arrangement con forms with pruvlous announcements ns to Interest arrangements nnd pro vision for flnnl extinguishment of Iho debt In G2 years. Tho Interest rnte Is fixed at three per cent for tho first ten years, from December IS, 192J. nnd three nnd one-half per rent thereafter, with a fixed schedulo of amortization payments npxroxlmat Ing nn average of one-halt of one per cent of tho principal. Tho British government Is given the right tn mnko the annual pay ments on principal In three yenr in stallments instead of every twelvo months, nnd also, on ninety days no tice, to retire any additional amount of the bonded principal. Great Brit ain's financial position permits. ' I i i ? t I r - it i.'tw.'wn.;'aip'