Daily capital journal. (Salem, Or.) 1903-1919, December 20, 1918, Image 1

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Only Circulation in Salem Guar
anteed by tli Audit Bureau of
wfe; jn cir"- lICCrT - " - ? ' '
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.
to Bringing in N. Y.
Call Article.
Saldatenrat Has, Decided On
Constitutional Form Of
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
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. -
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
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-
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
"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," ..''
Wd Be Primarily for Safe
guard Funds cf
Inrestors :
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
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.
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
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. ' ' .. ''
1919 TO IE 11 TEA
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
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
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.
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 -
v - -.
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
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
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
'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
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.
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..
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.
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
. .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)
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.