Daily capital journal., January 09, 1917, Image 1

Moil
r 4
FULL LEASED
WIRE DISPATCHES
I Journal
CIRCULATION IS
OVER 4000 DAILY
FORTIETH YEAR NO. 8
SALEM, OREGON, TUESDAY, JANUARY 9, 1917
PRICE TWO CENTS
ON T BAINS AND HSWB
STANDS FIVE CENTS
ANNUAL
MESSAGE RE
BY GOVERNOR TODAY
BEFORE JOINT "SESSION
ft
Governor Advocates Pruning Many of Estimates for Appro
priations As Submitted In Budgets of Various Institu
tionsWould Abolish Office of Labor Commissioner
Flax Experiment Is Lauded As Highly Successful and of
Great Importance
Recommending n cut of $461,000 in greet the old and new members of this
Hie state budget in nn effort to come j legislature, meeting onee again to lay
under the provisions of the recent six i tlic foundations for another two years
per cent tux limitation amendment, to 0f state administration. Oregon is to
Hie constitution of the stale of Oregon.be congratulated upon the high type pf
pt the November election, was one of capable citizenship represented here,
the features of Governor Withycombe 'a ; There aro difficult problems to be met,
(--ennial message to the legislature, j but 1 am confident the members of this
which was delivered this afternoon at body are equipped to solve them with
the second day 's session of the Twenty-1 intelligent foresight, fearless honesty
ninth assembly in the house of represen-! and public spirited patriotism,
tativcs. j This, I trust, is to be a session of
The recommendation plans to reduce businesslike accomplishment and wise
the $715,82 which the budget calls for; economy productive of needed legisla-
in excess ot what can be raised under
the new constitutional amendment. To
meet his retrenchment program, the gov
ernor announced a plan to raise $200,000
so that the deficit will be eliminated 1
and the budget brought within the con-
stitutional limitation. The total of ex
panditure eliminated and funds created,
if his suggestions are followed, he es
timated during the bi-ennium to be
$721,000.
The governor suggested using the
pruning knife liberally although with
ai eye always to the efficiency of the
various departments. One of the larg
yste proposed reductions is in that asked
l)y the state fair board, which the jov
ernor would cut from $225,800 to $120,
000 or a reduction of $105,000. The
largest proposed reduction is in the ap
propriation asked by the University of
Oregon, from which he suggests lopping
$ 1 31,000. He would reduce the bounty
oil wild animals by taking $25,000 from
the $90,000 asked, and ho would elim-
410000 ,i,:..:., i.:i.i i
f, , ' , j, . h , . . , slate, and that the resulting decrease
tare commission and the industrial wel- .!,. . -, , .r,,. .
. . ... . , ' . . of individual responsibility- lessens ef
fare commission with the industrial ac-i' r mi.-. .......
j , . TT , . . 'iieieiicy lit piiunc sci ice. 1111s mmtei
ttTIBTr(,u? U$M presented, not because I happen to
$.'(0,000 from the $84,588 asked bv the
state board of health and the social hy
giene society and combine the two un
der the state board of health. Other ap
propriations are sliced accordingly and
may be found in the statement in the
governor,
Among the suggestions for legislation
-ire to reduce the number of minor cases
before the supreme court, the establish
trent of .-military training in the state
university and the high schools, the
transfer of the duties of the labor com
missioner's department to the industrial
nceident commission and abolishing the
office, the sterilization of the mentally
vuf it, the building of a coliseum for the
state fair, the supervision of all mat
ter to be printed by the state printer ; records in the institution and the con
by the state board of printing so as t(r,itions surrounding them there, as these
avoid dupjlieation of reports, and the! facts naturally bear upon the applica
erection of a building at ChampoegUion of executive clemency,
where the famous meeting there in 1843 j n other words, the governor, more
enn be celebrated. than anvone else, is directlv concerned
uhe message was read by Governor
Withycombe before the joint assembly,!
which met shortly after 2 o'clock in the
m.unc m iciiicsuuiuiivi-s. iur amira iiruuus uuaims ijii,.io..uu iiiuu- man lui
the house were packed clear back into j be raised under the provisions of the
the rotunda.
the governor s message follows:
Members of the Legislature: Greeting: with the creation of new revenue. Both
As eitizcnl of a great commonwealth j these are subjects which should be ap
we owe a debt of gratitude to the Om i proaehed cautiously, considered with
nipotcnt One for the general prosperity j painstaking care and acted upon with-
flril Happiness or our people. We have
been blessed with a bountiful harvest
and increased industrial activity which
brinoa plenty and contentment to the
home. i i i IT
It is with sincere pleasure that I
bcate fair board
Civerslty of Oregon
University of Oregon medical school. .
Bounty on wild animals'
(.hild labor and industrial welfare commissions (to bo
placed under industrial accident commission).... 12,000.00 12,000.00
State board of health, and social hvgicene society, to
be combined under board of health 84,.-88.00 30,000.00
Dairv and food commissioner 40,800.00 5,000.00
Livestock sanitarv board , 45,060.00 5,000.00
Forest rv 00,000.00 15,000.00
Banking 10.000.00 10,000.00
Mines and geologv 50,000.0 15,000.00
State engineer anil water board 108,9C6.00 S1,000.00
Public service 89,100.00 7,000.00
Tax commission : 30,000.00 15,000.00
Weights and measures 8,450.00 5,000.00
Penitentiary (maintenance) 120,768.00 10,000.00
State hospital (maintenance) 374,880.00 20.000.00
Legislative assembly 75,000.00 10,000.00
Combined appropriation. 46 1,000 .00
While the details of the retrenchment Following is a brief statement, or ex
program above set forth may be largely planation, of .the various items covered
modified and revised, and other fields in the proposed budget reductions:
for economy daubtlejs discovered, I be-! The (120,000 suggested tor the state
lieve the general schedule will be found j fair board, should be sufficient to pro
meritorious, j vide for the framework of a coliseum
The total amount eliminated is 401,-1 whose interior conld be equipped tempo
PC. To reinforce this saving I further: rarily. and also for premiums and other
propose legislation which will increase necessary expenses.
r'ie state's revenue some A20O.0OO, mak-. While no departments of state admin
ing a total of expenditure eliminated istration are more fundamentally ifn--"d
new fi'-xl- created daring the bien- portant, and none have been more erl-
Blum ol : . -i,' "
rfl
i
t:on only. There is opportunity to es
tablish n record for excellence, sanity
and brevity. Such, I am sure, would
be appreciated bv the citizens of the
state and would best fulfill existing re
Iqmrements
Dccentralization
In any inaugural message attention
was directed to decentralization, which
has developed in Oregon governmental
procedure during the lasc decade, and
now again it seems fitting to refer to
this tendency,
1 n a large measure Oregon has a com
mission form of government. The gov
ernor has been more and more divested
pf authority. As a member of the
hnnr.l nf nn'nfrnl' in M mnnrqu t I
state matters he' has identicallv the i
same power to obtain the results he ,
desires, as other members of the board,
although the public vests him with a
tar larger measure of responsibility.
1 believe this tendency toward de
centralization is ill-advised, that it
works against the best interests of the
be the executive and seek increase of
political power, nor to urge immediate
drastic action, but rather to point out
a tendency which, in my opinion, w'll
entail increasingly harmful results.
Penitentiary Administration ,
The penitentiary properly should be
under the governor's jurisdiction. He
should cither directly control its ad
ministration or be empowered to ap
point a non-salaried civil board of su
pervision, as is done in many states.
The constitution gives the executive the
exclusive pardoning and parole powers
He. and 110 one else, regulates the re
lease of prisoners, and is in a measure
responsible for their subsequent -conduct.
He must be familiar with their
in the details of prison administration.
Budget Reduction
The state budget calls for appropria-
recent constitutional amendment. J tie
situation can be met only by pruning
the budget estimates in conjunction
inrii'linll
out bias.
lielow are listed the amounts asked
under twenty-one heads together with
the amount which I believe can be de
ducted from each estimate without im
pairing the essential activities of the
department in question:
Amount
asked
$225,800.00
.: 331.53C.00
Proposed
reduction
$105,000.00
131,000.00
10,000.00
25,000.00
138,820.00
90,000.00
; itably conducted than our educational
Oregon's Chief Executire In Action
GOVERNOR JAMES WITHYCOMB READS HIS ANNUAL TO THE LEGIS
LATURE AT 2 O'CLOCK THIS AFTERNOON.
institutions. I feel that under existing
circumstances the appropriations asked
by the university and college, are more
than can properly be allowed at this
time. I therefore suggest an equal ap
propriation' of $100,000 to each of these
two institutions, thereby eliminating
trom the budget as now prepared, the
6Uni Of $131,000.
Th.e 00l,ntie5 n wi'J animals might
weu be reduced about 25 per c.eut, whith
would accomplish the desired saving of
$25,000.
The work of the child labor and in
dustrial welfare commissions, which is
more or le3s purely legislative, may well
be handled by the industrial accident
commission's organization without ad
ditional cost, thereby eliminating the
present appropriations of the two com
missions named. An advisory council
representing the social features should
co-operate with the commission.
The state board of health can conduct
the work of the social hygiene society street will be permanently closed
with greatly reduced overhead cost andj Thursday noon and the bridge that has
without lessening efficiency. Here also withstood the traffic for twenty-six
the interests of the social hygiene work i years will practically, as far as use is
should be represented by a committee j concerned, cease to exist,
co operating with the board to the end Until Thursday noon there will bo
that the meritorious activities of the! the usual traffic. At that hour pas
former may in nowise be neglected. j sage to the bridge will be blocked, the
I believe the appropriation for the I watchmen withdrawn and not oven a
dairy and food commissioner can be re- foot pngScnger permitted to cross. The
duced without curtailing the efficiency ! closing of the bridge ends lhc gt
oi his department. In this connection I . The report of the state engineer dc
suggest that the com.n.sisoner's work Llaring the brid absolute,y unsat0
be more exclusively devo ed to tie m0VKf th two ount f g f
dairying interests under his jurisdiction, i ; ,..uljolr , lnC " , .
and that an arrangement be made ! "" ? estcrda.y to take action and to
whereby tlic subject of food inspection j td e 11 q,'' ' n.,i-n m.. t
shall be transferred to the state board wm, (fSUlS fMa
of health j "le cprr&lnty of all eonimunl-
It is believed that the cut suggested : 1c?tio" ac!'09S thf e bein6 ftf .
can be made without impairing the ac-' e directors of ?e Commercial club
4tivities of the livestock sanitary board.
dering important service, I believe its
vtnue ine forestry uepartmeut is ren-
administration costs can be reduced
aU(1 that if anvthintr thev should be
met more bv the timber owners who are
the cnief beneficiaries, and less bv the
. , ... '
taxpaying public.
lhe Banking department is now prae-
tically self-supporting and the approp-
riation asked for can be eliminated.
A cut in the expenditures of the De-
partment of Mines and Geology, is, I
belivev. justified.
In view of the fact that the state is
not conducting any constructive work,
as irrigation and water power develop-
We'veiow got th' fifty-cent dollar
we used t' hear so much about. Who
remembers when a feller used t' apol
ogize fer bein ' dressed upt
-
(Continued on page twe.)
USE RAILROAD
E
E
T
An Agreement Practically Is
Reached with Official
Temporary Car Service
The Marion-Polk county bridge that
spang the Willamette river at Center
! D.e8tt.n at on.C(' 10 aiss means of con-
" "i n. t" i"v i
traffic which is estimated
ai moro
man z.uuu persons n nay.
Besides establishing a ferry which:
was deemed entirely inadequate, thero !
was but one means of crossing the river.
and that was bv the Southern Pacific
5 , n . a.
bridge. To fully discuss what might
bo done for the city by the Southern
Pacific officials, a meeting was held
this morning, attended by F. L. Burck-
halter, superintendent; II. A. llinshaw.
general freight agent, and J. A. Or-
mandy, assitant general passenger
agent, all officials of tha Southern
Pacific.
UEe Railroad Bridge.
After a discussion of the planking
of the railway bridge and the putting
: on of a special train to run between
I Kingwood and Salem, the railway of
I ficials will probably recommend to the
j higher officials that permission be giv
en to plank the bridge affording a 10
foot roadway. And that while this is
being done, which will require two or
three weeks, a service to run every
half hour between Commercial street
and Kingwood be established, with a
five cents fare.
The Southern Pacific officials at- i
j tending the conference with the board
of directors or the Commercial (.lubl
were inclined to recommend that the
bridge be leased to th eeounty or some j
responsible company, without charge, j
as a means of relieving the present
serious situation. In giving the free
use of the bridge, it was suggested that
the Southern Pacific should be held
free against any suits for indemnity
for accident.
Hence, the present situation sums up
as follows:
The Willamette bridge will be per
manently closed Thursday noon, to
both vehicles and pedestrian!.
After Thursday roon, no teams or
vehicles will have any means of cross
ing the river until the S. P. steel
bridge is planked, which will require
about three weeks.
r
BIG
UNTIL NEW
SKI
BUI
(Continued on page three.)
S ARE
TO WORK
IN REAL EARNEST
Resolutions and Bills Come
Along With Rush
Today
LEWIS HAS MEASURE
TO MAKE STATE RONE DRY
Houses In Joint Session This
Afternoon to Hear
Message
The gavel fell shortly after 10 this
morning in the senate chamber and aft
er roll call Rev- George F. Holt of the
First Baptist church started the day's
work of the seuators right, with a brief
prayer.
Resolutions were submitted as fol
lows: No. 16, by Bishop. To appoint bill
clerk and assistant with salary of $3 per
day.
No. 17, by Shanks. To appoint one
page to operate between the senate and
state printer, with salary of $3.
No. 18, by Orton. Authorizing chair
man of insurance committee to oppoint
one clerk with salary of $5 per day.
No. 19, by Von Der Hellen. To send
20 copies of senate bills to certain lib
raries. No. 20, by Smith, of Josephine. Me
morial to congress recommending appro
priation of $390,000 for improving har
bor at Crescent City, Cal.
Joint resolution 3, by Eddy- Asking
congress to enact such legislation as wiil
prevent advertising matter concerning
sale of liquors being sent through the
mails.
.Senate resolution 11, by Shanks. Au
thorizing state printer to deliver 20
eopies of, senate' bills to libraries
adopted.
Joint resolution 4, by Gill. Inviting
State Biologist Finley to show pictures
of wild life to legislature.
Joint resolution 6. To provide by ap
pointment of a commission of seven, one
justice of supremo court, one layman
and five members of the bfcr to reform
laws the members to serve without
pay, and to report to the next legis
lature sent to printer.
No. 3, by Wilbur. That legislature at
end of 20 days take recess for 20 days,
to digest bills.
The committee on resolutions reported
favorably as follows:
S. R. 7. That no clerk or employe be
allowed overtime or extra pay adopted.
S. R. No- 9, Smith, of Josephine. In
viting clergymen of city to open ses
sions with prayer adopted.
S. R. No. 10, by Dimick. That no bills
be introduced or accepted by the senate,
without consent of three-fourths of the
members after the 30th day of session
except house bills or those introduced
by committees.
This caused the first discussion of the
session.
Senators Dimick, Pierce and Farrell
advocating, and Smith, of Josephine, op
posing it it was ndopted.
S. H. No. 71, by Shanks. State printer
to deliver copies of bills to libraries
adopted.
A message from the house announced
that it had ndopted senate resolution
No. 1.
Senate bill 288 of the 28th session
was returned by the governor with his
veto. It provided an additional judge
for the 10th district.
It was referred to the judiciary com
mittee. First reading of bills being in order
brought 10 of them to the clerk's desk.
S. B. No. 6, by Smith, of Coos and
Curry, to amend certain sections of the
Oregon code,
S. B. No. 7, was to amend section of
code.
S. B. No. 8, by Smith, of Josephine
To amend laws licensing and regulating
motor vehicles.
S. B. No. 9, by Lewis, Multnomah.
Providing licus for making certain im
provements. S. B. No. 10, by Olson. Concerning
abstracts and forbidding their use by
others than those who impound them.
S. B. No. II, to amend section 7, 439
f.ord's Oregon laws.
S. B. No. 12, to amend section 11, 53
Lord's Oregon laws.
S. B. No. 13, to amend charter 4 gen
eral laws, and sections of Lord's Oregon
laws.
S. B. No. 13, Barnett. To provide-for
accepting benefits of federal laws con
cerning and to state roads.
Senate resolution 4, by Kddy. Asking
congress to submit national prohibition
amendment to federal constitution.
There being no further business, the
senate recessed until 2 o'clock at which
time it met with the house to hear the
governor 's message.
STATE WILL BE BONE DRY
IF LEWIS BILL IS PASSED
"Bone dry" the state of Oregon will
be if house bill No. 1 introduced by Rep
resentative Lewie, of Multnomah, suc
ceeds in making its way through the
BOTH
HOUSE
DOWN
(Continued from page one.)
WOULD TRY LAWSON ON
CHARGE OF CONTEMPT
FOR WITHHOLDING NAMES
Boston Financier Finally Admits That His Information Is
Not Definite and That He Has No Names to Disclose
Heated Exchanges Again Occur Between Representative
Chiperfield and Witness-Federal Control of Stock
Market Is Advocated by Lawson
By J. P. Yoder Lawson then named H Content Co.,
Washington, Jan. 9. Revelation of 111 Broadway, New York, as "tke only
the name of a "high official," which j brkIer with whom I dealt'
it . , , , .... Let's go on," interrupted Choirmaa.
f now given, would be disastrous , Henry. "Ve seem to be getting along
to the nation and administration," was ; pretty well."
promised by Thomas W. Lawson, finan- j ' Nkort of a breach of the peace I
cier today, should an investigation body i don't think we're getting alon at all',"
with higher powers than the present Chiperfield retorted,
house rules note leak committee be or- "You told us yesterday you were a
. T ; benef iciary from this leak," Chiperfield
This promise came after Lawson con- pressed. " How much did you make and
tessed that all he wants is to have WBS it $500 0001"
Wall Street probed to the bottom I ..0h, I 'don't know," Lawson re
Persons hearing Uwson thought he't0rted.
r. W P 2"U1 SOm,P a.mDassa
dor in Washington. II
qualify his statement by saying that
it- wfl n i:inj uin..,. tt: i '
. .i.Kiuii. in- iHcnueu u.
.v u uiuicu wiuiirn ihiii mi.
All morning he dodged committee
queries and so incensed were memhers
that two- new motions were presented,
aimed at putting him in contempt of
the comittee. The motions were receiv
ed bus action thereon was deferred.
Lawson answered Representative
Harrison's question "aren't you a
common stock speculatorl" by saying:
"Not any more than you are."
Representative Chiperfield vented his
displeasure several times on Lawson,
who replied In tho same strain.
The committee got a frank expression
from the self styled "farmer" to the
effect that he wasn't interested in the
leak really, all he wanted was the
New York stock exchange probed and
reformed by legislative rules.
"IT1 make good," he shouted after
he had been raked fore and aft for two
hours with unavailing questions.
Referring to the ca.inet officer as
'A" and tho banker ho had referred
to yesterday as "B, " Lawson said he
would show under a full probe that
"A" furnished information which en
abled "11" to sell stock short at this
particular time and at other times to
buy stocks. Then the sums were di
vided. His information camo from a
congress member, Lawson said.
The comittee recessed at 12:40 until
8 o 'clock. Lawson was ordered to be
within calling distance, but his testi
mony was ended for the time.
Following refusal of Thomas W.
Lawson to divulgo names in the note
leak investigation, a bill extending
power to punish a recalcitrant witness
before a general or special committee
of the house, was introduced in the
house today by Representative Caldwell
Report Lawson to House.
Washington, Jan. 9. The house rules
committee, probing charges that a leak
on tho president's note to belligerents
made millions in Wall street for specu
lators, today voted to report Thomas W.
Lawson, Boston financier, to the hoiiBe
for refusing to divulge names of men,
who he said, had linked a cabinet, of-
ficer's name with the leak profits.
Shortly thereafter, Representative , "I believe that," retorted the repre-
Bhiperfleld, following heated clashes sentative.
with the witnesses, started to move Lawson offered to communicate hi
again to cite Lawson for contempt, but information relative to the third name,
fellow members prevailed against such to Representative Garrett, Tennessee,
action at this time. personally "that he might determine-
Chiperfield 's motion read: whether or not it would be disastrous to
"I move that the refusal of the wit-' make public the name."
ncs.'es be presented to the house with Finally, Lawson admitted under que
a transcript of the questions and re tinning from Representative Garrett
fusals in order that the witnesses may that he did not care nnvthing about th
be dealt with as in contempt." j leak probe "except to get a change in
jwimn was imhfu.
lawson ihukos jrronuse.
Lawson finally made the definite
promise, however, to give the name of
the congressman and the cabinet mem
ber ho mentioned yesterday "if the
present commission recommended a full,
rather than just this preliminary
probe. ' '
Lawson said he believed in federal
regulation of the stock exchange.
The financier again today was asked
the name of the "New York banker"
who told him "a cabinet officer" had
profited by the lead to Wall street.
Again he refused.
"I'll take you or any other member
out in the cloak room and tell vou con
fidentially," retorted Lawson, belliger-
entry, leaning toward ine questioner. ;
"But I wont tell it here."
Thereupon' Representative Bennet
moved Lawson be reported to the house
in contempt for the point of refusal.
"Do you advocate abolition of the
New York stock exchange by legisla
tion T" asked Representative Garrett.
Federal Regulation.
"No, but I believe in federal regula
tion," he replied.
t'hipcrfield asked Lawson with whom
he dealt on the market. Lawson parried
with a question as to Chiperfield 's
rights to ask questions.
Lawson said he did not recall with
what brokers he dealt in December.
Chiperfield roared out a protest, jumped
to his feet and said he "resented"
What he held to be Lawson's attempt to
indict others in the leak situation
! "Is $500,000 so much a bagatelle to
vou ,hat vn ,i.ln, un Kk. v
made that much in Deeembert" Chiper
field continued.
"Five hundred thousand dollars to
me is $500,000," replied the financier,
amid a storm of laughter.
"That is the most exact statement
yon have made yet," Chiperfield in
terjected. Chiperfield finally blew up with a
loud report.
"Is it your purpose not to gWe this
committee any information!" he ehout
ed. "Let us not waste any more time."
' ' Oh, I 'm trying to give yon informa
tion," Lawson answered with a taunt
ing smile at the' flushed and irate legis
lator. Lawson suggested that there might be
another name in the leak situation, the
"mention of whom might bo morn se
rious than the mention of other per
sons," he had hinted at. In fact, tie
said, "the bare mention of the m
might be disastrous to the name and the
administration. "
Thirty days hence, he said, it, might
not be so serious to mention it.
After Lawson had explained "bear
ing the market," or "selling short" he
said short selling is not evil "unless'
abusod" and that "it puts a cheek on
the market when it is running away, a
it has been the past two years"
No Direct Information.
Under persistent questioning Lawson
confessed he had no "direct" informa
tion of auyone profiting through the al
leged leak.
"Did you personally profit)" Chiper
field demanded.
"No," was the reply.
In the course of an effort to have
Lawson provide names he had left blank
in a - telegram to Henry, Chiperfield
started to put in another contempt mo
tion, but withheld it at a suggestion of
other members.
Lawson dodged on the plea that the
Situation was serious and he did not
wnnt to drag any names out into public.
He talked about how it. would look in
the headlines if he named anyone.
1 m not interested in headlines,"
said Chiperfield.
"But I am," said Law
line STOCK innrKet system."
AGRICULTURE BILL CARRIES
Washington, .'an. 9. The house late
today passed the agriculture bill ear-
rying approximately $23,000,000 and
providing $.i(),000 tor an investigation.
proposed by Representative Mann, Illi
nois, of manipulation of food products,
and methods of their production, trans
portation, storage, preparation, market
ing and manufacture.
The house previously had adopted an
amendment giving employes who get
Icbs than $1200 a year a 10 per cent
increase in salary, with five per cent
increases for those getting between
$1200 and $1800
THE WEATHER
Oregon: Tonight
and Wednesday
partly cloudy,
cooler northwest
portion tonight;
winds mostly
westerly.