5000 CIRCULATION J (25,009 HEADERS DAILY) Only Circulation in Salem Guar anteed by tli Audit Bureau of Circulations FULL LEASED WIRE DISPATCHES SPECIAL WILLAMETTE VAIr LEY NEWS SEKVICB ON T SAINS AND NEWS STANDS FIVE CENTS FORTY-FIRST YEAR- NO. 300. SALEM, OREGON, FRIDAY, DECEMBER, 20, 1918. PRICE TWO CENTS wfe; jn cir"- lICCrT - " - ? ' ' ILIES HARMONIOUS art- wiTti mmmm - in peace mm More German ProDasranda Seeks to Cause Discord in America throuirh Statements that Peace Delegates Are out of HarmonyState Department Declares that Only Minor Differences Which Are Bound to Occur Exist. . ... ' By Osrl D. Groat (United Press staff correspondent! Washington, Dec. 20. The. allien and Uie- United States are (harmonious in te peace preliminaries, the state do aiartment assured today. This word was given to counteract . ajrerinaa propaganda which seeks to wplit tlie nations by discord. While the -'ttrcsiduht 'has done comparatively Ut ile, in Par.is so far, he has been met It is admitted that certain differ- Senator Reed Voices Objection Ctiees ot opmiou may ueveicp. nui w bate department believes that - such will be the honest differences whi feuld prevail in auy group with. var:i ed interests. The league of nations and freedem of the. seas are likely to encounter rough Siting before, the final settlement. But I'ingland'a laborers were for a league f nations a year or more ago. The i'Veneh sow say that it is imperative. Freedom of the seas will have many Interpretations. There probably will tw . discussions as to British naval .rcngth. and as to apportionment of strength in the proposed interna tional navy. UNEXPECTED STORM COMES UPON SENATE PROPAGANDA PROBE to Bringing in N. Y. Call Article. JANUARY 19 !S DATE SET FOR MEETING M Saldatenrat Has, Decided On Constitutional Form Of Government' By Frank J. Taylor (United Press staff correspondent) Berlin, Nov. 10. (Night) The Ar frHter 6uldatenrat (workmen's and tHiMiers' council) decidd in favor of constitutional form of government (today by a four fifth majority. It fix iKj .la unary 19 for the meeting of the tntional assembly. Count Bertistoiff, it was stared, is Jtt.cly to become foreign minister, in the event that Count Hroekdorff, min iver to Denmark, declines the post. It was reported several days ago DhaJ Bemstorff had been suggested .for f reign minister. Later it was grated ).- plan had been abandoned, in view. of possible objection by the entente. Tivlor's dispatch indicates that Bern- orff's appointment is again being egitnted. Lloyd McKe-e of Woodburn,' a mem Iiit of the Third company military po V'-e in France, was one of the first ov- risoua wounded to arrive at Fort Doug Is. . k. - ; ABH MARTIN S ' TOP Washington, Dec. 20. Tht expected storm, in the senate -propaganda investi gation broke today when Senator Heed, after vainly protesting against the admission of certain evidence, de clared h,e would "voice his protest on the floor of the senate." "Vu have that right," replied Sen ator Overman, chairman of the investi gating committee. Reed's objection, which was one of many made by different members of the committee, was based oh tho pro pricty of admitting an article in the New York Coll, commenting upon the addition of William Bayard Halo to tho rank of -the supporter of Nonis .... ...... . , l. j a-.:. tnimiil. 'me article was puuiianua dur ing the New Yifxk mayoralty campaign in 1917. The article" state J in reference- to Hale that h'had collaborated with President Wilson in writing ."The New Freedom,'? X Heed Protests -"I protest against that. It is a re flection upon. the president of the Unit ed States," declared Heed. "I fail to see how anything Hale might do or say could injure President Wilson in the slightest," replied Depu ty Attorney General Becker of JNcw York who was testifying. Becker contended the article wan rel evant as it howed Hale was support ing the socialist candidate in New York at the time he was in the pay of the Gorman government. Let it go in," was vverman t ver dict, after considerable discussion. Becker said that uaie was employ ed by the Germans becanso of influ ence he was thought to have with the American Dooide. His failure to exert any influence with the president on be half of Germany was a great blow, he declared. Lauritz Larsen, secretary r.f the Na tlonal Lutheran council, introduced a letter written to Senator Overman, pro testing againBt testimony relating to German nroclivities of its members. "It is to be deplored that the im pression has been created that, it is a German or pro-German church," he wrntA. Tinmen declared "when our eountrv entered the war, the church rail foil to the flair." "What nsrt anr members of the church have taken in tho pro-German propaganda they have taken as Ger man sympathizers and not because they were Lutherans," he said. ProDasanda, Flans Made Early As earlv- as 1909, said Mr. Becker, in, his testimony yesterday afternoon, George von 8kal, a former German re serve officer and later auditor of ac counts of Npw York city, wa.i told on a visit to Berlin by a representative of the foreign office's press bureau that he would be valuable in case or a iu- CHRISTMAS SALES EVERYWHERE HAVE BEEN DNEXAMPLED In Large Cities Christmas Buying Has Swept Holiday Shelves Gean. Chicago, Dee. 20. St. Nicholas has up-ended his purso more gleefully than over before iu Chicago. ' Department store managers, viewing the ravages of a locust swarm of shoppers which has stripped shelves bare, said it was the biggest business Christmas in their ex perience. "Phenomenal," said D. F. Kelly, manager of Mandel Brothers storo, to day. "The signing of the armistice has caused a period, of buying not on ly of necessities, but of the hotter class of merchandise never before experien ced by store men." '.'The volume of business this Christ mas is larger than I have ever seen,' declared E. J. Lehman, of the Fair. "A feeling of confidence pervades that baB prompted sensible buying of this class of goods." . . "Tremendously. increased volumes of sales have been experienced this sea son,", said Henry G. Hart, sales man agcr of the Boston Store. "The month's business bo far has been the biggest in the history of the store and there is no doubt that the signing of the ar nustice is the cause." John V. Farwell's business review to day said: " ' ' Tremendous retail trade for tho hol idays throughout the country is greatly increasing the volume of wholesale bus mess," ..'' IM1II RUSSIAOFAlilES Wd Be Primarily for Safe guard Funds cf Inrestors : WOULD FORCE EVENTUAL ALLIANCE WFTR GERMANY Self Got ermaent For Russn Is OarPossibity For Reconstrucdon " Portland, Or., Dec. 20. Tho true yuletidc spirit permeates Portland, as oidenccd by the greatest holiday biwi miss in the history of the city. Be: ci.use the boys are coming home, the people are happy and they are digging deeply into "o.r pockets in thoir desir to 3pnd Cnri(iC4 Uieot. f jv "IucrN.d l)U(-!!K5s, compared " to th banner year nf tun past, is variously eatiiHnted by leading business house) at tram "S to .40 per (font; V New York:, Dec. ?0 New,. York expeiioiicitig tho .greatest Chrwtmas !)ving in its history. - -,t : Managers of big department stores I dochtre their places aro crowded daily o capacity with every department re porting unprecedented sales. St. Paul, Minn., Doc. 20. Unprece dented sales of novelty goods and toyi were . reported by leading merchants ut tlto Twin Cities today. The biggest wholesale toy distributing firm in th noithwest is completely sold out, th management declares. San' Frnncisco, Dec. 20. Christina. business is heavier this year by 1j pei cent than even in 191.1, following the exposition, department store men agree today. ," "It's because o much money is circulation," said B. F. Krhlcaingvr of the Emporium. "Everybody has job." Washington, Dec. 20, Christmai shoppers have swamped Washington stores. Buying records are being smash cd. At postoffico substations persons with packufces to mail are forced to stand in line for hours. By J. W. 1 Kaeoa " (Written for tha UnituA-Prom) New York,- Dec. 20. -Influences- are being exorted on the allied- nations to send a strong au-my into Bussia to ov erthrow tho bolsaeviki and eetavlisk a more moderate form of government at Petrograd or Moscow. Intervention da the internal affaire of Russia, -would be primarily foi the purpose of safeguarding the funds in vested in Russian securities. The Unit ed States had consistently refused to permit European financiers to collect debts by warships in houth - America. If a reversal of this policy were made -in the case of Kussia, it is highly proo able the Russians would be driven into an eventual alliance' with German). Certain chancellors of Europe have made tlunder after blundei in -thair dealings with Russia. The most absurd of these miajudgments was the eonvie- tion they expressed last spring that the only way to win the war was for America to send- a vast Body ot troop into tRtiasia and fight Germany on tho eastern front. i Cannot Be Oonq,uerBd Bussia cannot be'oonquered. At great cost; the allies and America- mig.it brings about the Overthrow of Lenine snd Trotsky, but-"Sttsi, instea4 of being crushed, would be filled with a vengeful desife against the -western do mocracies that ' sooner or later would lead to aew conflicts. r - Ootti -government is highly desirable foe IRAissi, but self government n oet ter, 'Ths Russians cannot be taught br an invading army demanding repay ment of debts. Kvery great nation nas to go through the fiery ordeal of self instruction. Bussia can1 emerge from the semi-barbaric state of ho lata char's only by fighting lier own bat tle for herself. France had a far worse poriod than Russia's terror before the Frenoh teamed the true meaning or de mocracy. Nations that have passed thru the ordeal themselves should be- will ing to give time for the birth throes of a now democracy. FORTUGUESE RELD AS 1 POUflCAl-FiB SAYS AlfOTiSO COSTA Rye Thossasd Of Citizens Held Secretly And Punish ed Severely. - Paris, Dec. 20. Five thousand Por tuguese citizens have been held as se cret political prisoners for more thin a year, Alfonso Costa, former Portu guese premier declared in an interview with the Maun today. The sufferings of theso men, who were whipped and otherwise tortured, were responsible for the assassination of Sidinio Pass, "president of Portugal, it was Intimated. One of the victims of this modern inquisition was even ex ecuted, Costa said. The prsoncrs, aceordng to (Josta, in cluded former ministers, former pre sidents of tho chamber, senators, depu ties, officers, soldiers and sailors. ( Sidmio Paes headed a revolution in Portugal in December, 1917, and was named president of the provisional gov ernment an December 9. He was for mally proclaimed president June 9 of this year. At the outbreak or the war, raes was Portuguese minister to Germany and remained ia Berlin until early in 1918, when he returned to Lisboa. Paos was fired at while walking in the streets of Lisbon, December 8. The shot went wild and his assailant was arrested. Eight days later he was again attacked ' as ho sat in a Lisbon ran way station waiting for a train to Oporto- He was struck by three bullets and died witnin a rcw minutes. m assailant, named Jeetne, was lynched by a mob. ' Investigators Find A ShipYardButtders ismariged Badly No Criminal Responsibility is Fixed, But Recommenda tions Are Made for Examination by Board of Ex perts into Expenditures of Hog Island Shipyard Builders Corporation Officials attempt to Justify - Positions. ' ' .. '' CAMP LEllTO HAVE S 1919 TO IE 11 TEA FOR AUTO IliSTRI Tacoma And Red Cross Ar ranging For Big Celebra Tacoma, Wash., Dec. 20, The thoui ends of soldiers remaining nt Camp Lewis will have a regular old-fnshion ed Christmas. Not a man will be over looked. Tho camp cooks already arc preparing thoir menus and are s'aging a culinary contest, turKey naving prominent part. Christmas decorations are going up on all the buildings. Through the Y. 11. C. A., 3U,wiu Boxes of cardy have been prepared for dis tribution, while 1he Red Cross is send ine a Christmas box to every man Tacoma, with the assistance of the Red Cross, is arranging lor a ccieDra tion. with a Christmas tree and all the trimniiuRS, in each of the 49 ward at the base hospital. A giant fir tree, growing in front of the Y- M. C. A. auditorium has been selectod as the Camp Lewis Christmas tree. Washington, Dee. 20. Gross misman agement and extravagance permeatod affairs of the American International corportisa in building the great Hog Isljna shipyards at Philadelphia, so cording to findings of department of justice investigators made public at the hite house today. ' ' While n criminal responsibility is xed, recommendations were made for examination by a board of experts in to the corporation's expenditures, kit investigators are u. Carroll Todd and Mark Hymau assistant attorney gener al. . Tho report says officials of the cor poration attempted to justify their po sition by explaining that they wore forced to sacrifice economy for speed. They claimed also that, in giving t'jem second contract the United Htatcs shipping board had waived any alleged mismanagement. But, the increase from 21,000,000, the first estimate of cost of tho yards, to 61,000,000, wat no accounted for to the full aatisfac tion of the investigators, tho report says. Due to Miscalculations. "Sueh discrepancy must be duo tt some fundamental miscalculation in the orisinal estimates, to suporvening con ditions, including enlargement of plani to nusmanajtoment In operation, or to combination of those factors," the re port continues.. "A discrepancy of this magnitudo would seem to can ror ; clear explanation f i'om the corporation, but this has not bnett lurnisnea." In ten sne-eif io charges, the inveati- (rations toll the story of how fll,0DO, fiOOwas expended in-building the nig plant; they reveal how tho govornmom paid "two to throe time as mucn poi shipway at Hog Island ".as ror Duua Philadelphia, Dec' ZO. Increase of from 12 to 20 per cent in the volume of Christinas business over any other year on record was reported by lead ing department stores today, Cleveland, O., Dec. 20. Cleveland stores are serving a record breaking rush of Christmas shoppers. W. H. Gray of the cRtail Merchant! board, says that the total volume of business here is higher than in other record years. Principal Changes In Priced Cars Will Be In Motors. ITALIAN LEADERS TALK WITH WM ina other yards which were construct ed under like contracts and under lira. Unr senditions. : ' Increased Salaries. Employes were brought from the plants of sub-contractors to be placed - on the Hog Island payrolls at greatly increased salaries, according to evi dence gathered by the investigators. 8oj many men were hired that the effect was an "organised riot" and the en-1 tire organisation was disrupted with. unsatisfactory labor conditions result-; ing. In some cases, the report says, the payrolls were so overloaded that . men stood about idle. The labor tun , over, as a result, ranged as high as 200 . per sent a week, the data showed, t It is eharged that although the Am-; eriean International was paid "a wry-' substantial foe for 'know how' " ana was expected to be equal to the task it allowed seven weeks to elapse aftpr; aicninir of the contract bofore giving attention to transportation features ot tho enterprise. As a result 11,000 cats of freight piled up in Philadelphia and finally an embargo had to Do piaecoi against all freight shipments to that city. Congestion in freight yards, due to the careless methods, ths report ' snvs. was not confined to Philadelphia, but extended as far as Norfolk, Va. . "In spite of formal warnings from, the Emergency Fleet' corporation ana the 'railroads,"- the report says.'"' more freight was being ordered than could be used, officials of the American International disregarded advice and t took the position that they were re- sponsible for .the job and would prop erly handle the situation." - ,'ConMnned ihwi tl , ' f - BUSINESS CIRCLES PERPLEXED v - -. THOUGH CONFIDENCE IS FIRM In sonic eases t'l , ff ' IT IV 'ed in thifc itiioetinn. fCteran rinaKClSr UiSCUSSSSl government was caught with big su: Problems Niw Facing Na tion At Large. New York, Deo. H. A very singular combination of confidence and porploxl ty prevails in business curie.. ovit denee is generally strong, partily be cause war has bred a spirit of courage that animates nearly all men. Diffii culties that beforo tho war would have produced depression ,nd lower prices are now fncod with a determination to overcome all obstacles, which is a vory decisivie factor in- recuperation. Son timont is usually regarded as an slo- exist in business; plies on h!id, '.ud in ol.'i'r l-isnca manufacturers tiive fallen into simil.r, difficulties. Thofe in control at Wash ington, as a rule, aro experienced bns ini'su men, who appreciate a delicate situation, and aro reducing stocks and , prices with a view of facilitating a grndiml roturn to natural conditions. ' War contracts huvo 0( course been com- . monly cancelled; but this was not nn-; expected, and iu most cases the gov crrimnnt i8 showing cvsry possible con sideration to munition makers and others wh0 helped win the war. From tho nature of the case numerous eoin- plumts and losses must be incurred, t though many of these will be borne by the- government- ,and paid out of taxa- -tio f. a legitimate war expense. Tho most acute problem at the mo ment is that of lalMir. Wngos in com-; Denver, Cote., Dec. 20. Victory in the war and shopping thrown into the Christmas season by the earlier "flu"' Detroit, Mich., Dec. 20. Detroit au tomobile manufacturers have couip'st ed plans to make 1919 the biggest year in the history of the business. On January 1 automobile plants will be permitted to resume 100 per rent prodnctiea. Success of preparations hinge on the supply of steel which at present is com- ini in tta ,ilnntitll! . . ,tl a 11 1 1 ff, 1'i I.Tli . hoped for, according to executives of' ,a-r' tho larger plants. Few new models will bo. shown at the President Wilson Gaest Ot King Victsr Imannel ThisEvcssg. Paiis, Dec. 20. Italian leaders went into conference with President Wilson ture war to keep m toucn wun mo.-, - nress of the United Slates. Then. as inns uuying ov pt-r ceui ncavicr iniajwiu do oniy ir uispiaj purposi-.. nr. . .1 i. .. . ;H t .r (i tknt. last ...nviltnff tn Tl(i n .Al mnAna will nrrtl,.ltlw nn. Ka in tt,A m.r. no evidence However, taat- ne bch-u u,; -i . t this canacitv after the United States ; mercantile dealers. ket in rolume until next September. It entered the war, the witness saia. The German government in may, 1914. three months before the Premier Orlando and Forsgin Secre tary Honniuo called at the Murat Pal ace' at 11 o'clock and were closeted with the president for some time. Andre Tardien, commissioner of Franco-American relations, will go to the palace t0 arrange for the final do- ( requires about six months to get out' n P Jo ' " """"" Ia.7DcT20.-Des Moine.'. lew line of ear. afte, the designs' '" reception to th o f oreijr ' j: nij., 1 I... .1. ' , d i olomatic corps, president of tho sen r uuiiitr a vurnttriiias fun- urn mitiio. naiu iiib nmuuiuciaroi.. I . .. . . ,:Z K.,t. rtt.' Wiii a rt nun nnn .i tv, ,u.ii ,t,n. .,,tomi.tP ate and a committee from mat oocy. man Telegraphi News agency, witk ing t o the retail merchants bureau, in the higher priced cars will bs In,1?9 "'P"0'1 W1" ncJU al d ,u DesMoines, 'merchants are meut that does not yet it makes a vast difference whethermoti wjtn 0thcr values have risen to un- fesr or confidence is tno ruling spirii,: h(.af(i ,,f levels, owing to tnc war, nnn and fortunately the lutter dominutus 1( -mnmoditics decline it is solf-cvi-' opinion, not only in the United Htatcs; ,ent ti,Bf industry cannot rvcover ils but io in ureat urnauij ino iwg n-au- oc(,utom,,(l prosperity unless some worn ing industrial powors of the wu, tlut,' iorm of ndjustnient is developed, long as theso two nations possess thol. . VR. nntu;nlly refuses to eor.- . ability and the initiative to go aiioad, ;ri,.r nT reduction of wages while the , as they unqiiestionaoiy uo, inure i ro.inn to fear that tho war will have Mrs. Tilford Moots' broth w tok th' -fi-r from bein' exposed t' a dry town. Mt-rt Pu3iy, who has been makin' air j. ace spindly, 'II organize a trust cora pmy after makin' a tour o' th' world. s the biggest total in history here. .coming more popular daily. Barnch Asd McCcrraick jGreat Lakes To Play Hire To Leave Swn For Paris i Island Eleven New Years Washington, Dec. 20. Answering the Chicago, Dec. 20. Undefeated, the headquarters in Bagdad, to spread Ger- which canvassed the city today. This the motor. The airplane design i be man propaganda. . lae ipuoucauuu ui a German edition of Current Literature a magazine of which George Sylvester Vlereck in the United States, and his fanner, Louis Viereek, in Berlin, were promoters, was mentioned by the wit ness together with tiie Germanic Museum at Harvard and the movements to exchange professors with American universities, as German propaganda moves. Fake Revolt Humors Spread One example of enemy propaganda; said Mr. Becker consisted of the sys tematic effort late in 1917 to spread throughout the world the. idea that CiT-nanr was on the verge of interna tional revolt, and that the kaisor would soon be overthrown. The fact that the dissemination of these reports was encouraged by the (Continued on page tnrcc) summons of President Wilson, Bernard Great Lakes naval training station foot M. Barueh, head of the war Indus rirs ; ball team, in charge of Head Coach board, and Vance McCormick, hi'ad of Lieutenant McReavy and Dana Morri tbe war trade beard, will leave soon son, left today for Pasadena, Cal., where for Paris. ' they will meet the Mare Island eleven The state department announced- to- on New Years Day. Lieutenant Me dty that they will c' as experts in in Reavy declared the team is in the best advisory capacity at the peace confer-1 condition, enee. Barueh on the subject of raw ma- " terials and McCormick on trade agree-. 8TJB8 AEBIVE AT CHERBOUEO mcnt ma'ters. ,1 .. m - j Washington, Dec. 20. Five German four airmen were killed at West submarines, including the famous Point Tuesday when two airplanes col-! Deiitschlnnd, have .arrived at her lici ibourg, diploma!i,c advices stated today. afternoon President Wilson will return Victor F.mmanuel's eall and will be his guest at dinner tonight at the Italian embassy. The president plans to visit London immediately after Christmas.. CONFISCATE CROWN LANDS Copenhagen, Dec. 20. Tho Austrian national council has decided to confis cate all the crown lands, according to dispatches received here today. The imperial castle will bo converted into a children's home. CHAELES HENRY M'KEE DEAD. St. Louis. Mo., Dee. 20. Charles Hen ry McKee, 60 ypars old, president and editor of the Ht. Louis Ulouc-uemoerni is dead here today. Pneumonia follow ing influenza caused his death last night. . .1. . .1 : . aiirtlunir auDroucnina mu uuiirBMiiuK m feets once anticipated. It must be re-, membered that the world is infinitely more closoly related than ever before, and that the resources and recuperat ing powors of tho chief nations wero never ao cosy to marshal as a unit ia the work of regeneration as at present. It is quits evident therefore that theie will be international co-operation in tho work of reconstruction. The production of raw materials and the distribution of the finished products cannot be left to haphazard and speculative designs; but must be guided by temporary gpv- t witt, - vl,ur it KVnid- Kluirf wiinw't ...... . I : ..to nf r.nintrntiiir Aneri7V. of stimulating efficiency and of restrain ing inflation or sjceulation by united economic methods. Such aro somo of the reasons on which there is solid basis for confi dence. When it comes to perplex.tfcs, however, the situation ia not so pleat ina. Of these .there are legion, tn chief beine demobilization, reconstruc tion and labor. As for acmoDii.aiiisa, our own country has plunged suddenly into tnkinz down in a few weeks the i)hnomenal war machines that requia cd about eighteen months to create. Of course a sudden reversal of auch titanic ennrcries cannot be accomplished With out loss and depressiot. A pt;iod of hesitancy and declining pnea nut be inevitably endured, and that periou w n,.w seem to be entering. Nevertho less, a grtnl deal has been accompiU-i cost tf living lciuains so lagfti. m rcsi.lt is a thrflitencd deadlock lietwet-'l, vapitui nnd labor, completed by gP--cral fcocial unrest and an pidcmle Of unj u.K.uable T" folution of, s.ich a tangled pioblom rotiuirca the u. (Continued on page eight) EWAPB IN GERMANY STRIKE Efforts To Compromise With Strikers Who Demand Higher Wages, Fail t By Frank J. Taylor (United Press Ktaff Correspondent) Berlin, Dec. 18. (Night.) A strike of newspaper workers forced more than a dozen dailies to. 'suspend publication. Efforts to effect a compromise with the workers who demand an ineri-asa In wages, have failed. Among newspapers which were un able to publish today wero tho Tage blatt, the Lokal Anzeiger, the Vossiscii Zeitung and the Morgcupost.