Daily capital journal. (Salem, Or.) 1903-1919, January 21, 1919, Image 1

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Daily capital journal., January 21, 1919, Image 1

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Newspaper Page Text: 50G0 CIRCULATION - (25,000 READERS DAILY) . Only Circulation in Salem Guar- anteed by the Audit Bureau of Circulations : FULL LEASED WIRE : DISPATCHES 41 4 8PECIAL WILLAMETTE YAls 41 . . LEY NEWS 8EBVICE - 41 Weather Report !; Oregon: Tonight tsi Wed- aeeday rain, increasing south- easterly winas, 11 iii J FORTY-SECOND YE AR NO. 12. SALEM, OREGON, TUESDAY, JANUARY 21,1919. PRICE TWO CENTS ON TRAINS AND NEWS STANDS FIVE TENTS ifflTIL l (T W ,1 .;r :--r- - 1 til. J 3 5 f ' - jl rTr?nrrirnTinirrteaTi ARMOUR FLATLY DEfJIES CHARGES OF CONSPIRACY WITH PACKERS IN INVESTIGATION LiV TRADE THROUGHOUT HEINC, HE MADE HIE EEDEM. TRADE M$$M HIS tmet, mmu urinous .Urged Congress Not To Pass Pending BLis Providing government Lacensing Of Packing Houses, Or Gov ernment Ownership And Operation Of Stockyards Or Other Adjuncts To Packing Business. By Raymond. Clapper . (United Prpss Staff Correspondent.) Washington, Jan. 21. Flatly dony ing charges of conspiracy with other packers, J. Ogdcn Armour replied to the recent firo of the feaem ade commission today, - Testifying bofore the house interstate commerce committee, ha built up an elaborate defense of his concern 'a busi ness conduct. Armour fi rushed with his sweeping ueniai: "1 say to you positively that we have Jiot for- many years been and are not jiow in any pool, combination or ar fangcuicnt of any kind, either diroctly or indirectly, or openly or secretly or u. tlcr cover. All such cliargos are 'ut terly unfair and untrue." jrurpughuut Atmour made the foderal trade commission .. his, target,- attacking its methods during the recent investiga tion .directed by Francis J. Iienoy. ' Armour's First Appearance. This was Armour's first appearance In-fore a government body. His com pany has not previously been givou a chance to answer accusations, ho said. "in tho investigation made by tho federal trade commission, ' and which lias resulted in the pending bills, it Ims been admited by Chairman Colvor that we were afforded no opportuniy to produce witnesses to inroduce testi mony or to expain Or answer any ol tho documents introduced at that hoas tug," Armour asserted. Ho earnestly urged congress not K pass pending bills providing govern ment licensing of packing houses, and (jovcrnment ownership or operation of dockyards, refrigerator cars, branch linuscs and other adjunct) to the pack ing business. "If a monkey wrench is thrown into the gears of this business, its effect will not be confined to the meat pack ing industry," Armour went on. '. "The theories on which ponding leg- ulation is based are not constructive, Mtey are not progressive. They are re actionary." ' 'Stiip.h Ijiwa nrnhnblv will he uncon. . stitutional, Armour's legal advisers bo ieve. Touched High Prices. , . . . ... . . . . .. - r -- -j -- r. l - witness said live hogs had increased in nice 245 per cent in four years. Labor and fuel costs have also gone up, he pointed out. . . Charges of excessive profits, how ever, wero denied. In 1918 Armour's profits are said to have been 1.8 cents on each dollar of sales, as compared with 3.7 in 1917. Itccallina that on November 1. 1917. 'i nncnintr nrier v nn nioh Tirieoa. run tho food administration limited pack erg to 9 por cent on. the capital invest ment in meat producing linos, Armour declared that only about one-half of this nlowance was actually earned. "The federal trade commission," be continued, "has failed completely to. justify its charges of unduly large prof its, ' "During the last 18 years, including the war period, the earnings of Armour end company, on the actual investment and appraised value of the business av eraged 6.9 per cant on everything in cluding all our by-products sod all ear associated lines.'' "Side lines pay the bills," said Ar mour, in explaining the policy of push ing by-products. The sales organiza tion can be used and factories and em ployes ccn be kept busy in off-season periods, soap,, violin strings, soft drinks and perfume were classed as legitimate sideline for packers. Had Lost Honey. Referring to the pending bill, which would take rf-f rigerator cars out of pack erg' hands, Armour insisted he had lost money on refrigerator cars for the lat (iix years, but that they were essential. .They are subject to tho interstate com merce commission, he said, adding that lie. failed to see any advantage to the fiu'olie by government ownership of them. . Armour consider! government owner ship of stockysrds immaterial as long as efficient service is rendered, de fending present packor control. "As a packer, I am interested in seeing the yards handled in the most efficient way possible and it is abso ultcly immaterial t0 mo who owns thorc "Ownership by tho government im plies red tape and restrictions which cannot help but add to the costs of tho sorvicn. I uiu entirely ready and will ing at once to relinquish my holdings upon being allowed just compensation "Somo of our critics charge that oup interests in stockyards and exchange building give us & club over tho hoad of the commission man who must do our bidding or bo relegated to undesirablo orrices and pens, ouch encrges ara. utterly untrue." . Existence of pools in the days when they wero common was admitted by,. Ar mour .., .... . i High Business Ethics. ' 'i ' Tlio business of Armour and com pany is conducted in accord with the highest and best business ethics of the day. A generation ago when pools and combinations" of various kinds in rail roads and in evory kind of business wero common and-of every day occur rence, were ethical, and wero supposed ly legal, we were then somtimcs a- party to them; but when new legislation or now interpretations of existing legisla tion made such pools and combinations improper we absolutely ceased to bo purlins to any of them." Pricor agreements as to lard substi tutes wero not a result of "collusion" Armour told the committee. They wcr-j fixed by the food administration to sta bilize prices. Ho went into detailed explanation of the famous "fifty-fifty" letters which tho federal trade commission took as evidence of 8 working ngreomont in Denver between Swift and Armour. Armour denied there was such an agreement in a criminal sense. When Philiy D. Armour wroto from Denver that "everything here is on a 50-50 basis, ho meant," the witness said, that tho division was about equal on a natural competitive basis, a con tinuation of an even start, each concern had in 1912, when tho National Pack ing company was split by the two pack ers. "The 400 per cent stock dividend was merely a bookkeeping transaction porfectly honest and legal in every re spect," according to Armour. "It merely gave each stockholder five shares of stock where formerly he held one, the value of which was equal to tho five which replaced it.'-' Several More Cruisers And Transports Sail Washington, Jan. 21. The cruiser (Frederick, Brest for New York, is due January 29 with groups from the 83d .division to bo demobilized at Camp Sherman. The transport Conia, Brert for New (York, is due January 24 with eastern troops. The transport 'Easterner, Bordeaux for iNow York, is due February 4, with four casual officers. The transport Alseeon, St. Nazaire .for New York, is due February 3 with an Alabama casual detachment and six ,teea casual officers. The transport Susquehanna, St. Na taire for Newport News, is due Jan uary 31 with casual companies, includ ing the 444th (Illinois); J30th (Ida ho); 47 casual officers, about 600 sick and wounded, and six officers and 71 men of the navy. BRITISH MISSION IN FIGHT. Budapest, Jan. 19. Members of the British mission in Letnberg narrowly escaped death during bombardment ot that city by the Ukrainians when a shell exploded in s- street near them, according to a dispatch received here today. E JOINED WITH I. W J. Ways And Means Comniiftee Thinks There Are Enough Jobs For Soldiers. Members of the senato and house ways and means committees, mooting in joint session last night, expressed their opinion of soldiers who are mix ing with the I. W. W. a-nd bolshevist clement in Portland. They were unanimous in the opinion that no sympathy should bo extended to that class of soldiers, as it was brought out that there are enough jobs boing ofefred to the men returning from 'war to tuke care of ell of them if tho men would but accept tho work. They were equally unanimous in the opinion that the deserving soldier should bo given assistance to tide him ovor uutil ho gets a job, and that a small appropriation should bo mado for that purpose, . . ' -i Senator J. C. Smith said he visited Portland over tho weekend and investi gated conditions there. He found that a number of soldiers wero mingling with tho I. W. W., but ho classed them as men who would not work if they hud a,!ir.hce. ' Mrs. Alexander Thohmpson exprossed tho belief that for evory soldier who joined the reds there would bo 10 who would not and the 10 would handle those who did. "The polico of the city of Portland should tako tho uniform off of soldiers who wear a red button or a rod flag," declares Senator Lachmund "and they should then fake the button away from them." Eeprosentative Herbert Gordon, chair man of tho house ways and means com mittee, said the legislature should pro vide ofr tho worthy soldior. who might bo iu need, but that those who wero joining tho I. W. W. should bo handled with a strong arm. Discussed State Institutions. Tho joint ways and means committee lust night discussed some of the state institutions which had been visitea by sub-committees during the week-end re cess. Senator Smith reported that the committee which visited tho penitentia ry was unanimous in the opinion that it would bo a wasto of money to make appropriations for pormancnt improve ments until new buildings were provid ed. He said the present buildings wero unsanitary, dirty and unsafe. Ho rec ommended that appropriations be mado for temporary repairs, to last until the question of voting money for now build ings can bo submitted to the people again. Mrs. Thompson thought a bomb should be placed under the buildings and blow them up, and similar action should be t'akca at the boys' training school. On recommendation of Senators Stray cr, Patterson aad Mrs. Thompson, a cut of'$13,500 was made in the requests for the state institution for the feeble minded. The largest item cut was $10 000 for a new hospital. The committee recommended that a request for $50,000 ( for two new dormitories be allowed ana that a portion of one of the new dormi tories be used for a hospital until funds could be obtained for a hospital build ing. The committee praised the eonduct of tho institution- and said the cuts were agreeable to Superintendent Smith The joint committee listened to rep resentatives of tha Pacifie Northwst Tourist association explain the work of that organization as an argument in support of the request for 50,000. for the next two years- No action was tak en. The state fair board will be given a; hearing Wednesday night, while next Monday night the committee will give a hoartntr tA thnuM intATAAtAii in the fltate aided institutions, most of which are! located in Portland. THREE STEAMSHIPS AKJUVE New York, Jan. tl. Three steam ships arrived today with more than 4, 500 troops and civilian patingers. The transport George Washington carried 3474 men. The Italian steamer Verdi from Ge noa and Gibraltar, brought 8j6 civilian passengers and 439 sailors. Arrangement have been made to' place '10,009 discharged soldiers ia the shipyards of Hew York. SEHATE FAVORS BIG EDUCATIONAL EILL PTisi;w Adtpts Bill froTiiks Tht Stub's And Sailtri Bi fci Prefcresce, This morning the senate pase3 sen ate joint memorial No. 4, introdneed by Senator. I. S. Smith, which urges eon groat to pass the big edueational bill now pending before that body. The bill crettes a separate department of education,, which shall be headed by a chief who.; shall ; be a member of the president's cabinet, and provides for t'i- government to co-operate with the states in advanriijj industrial educa tion, training of teachers and along other lines. Tho revision of laws committee, of which Senator Eddy is chairman, made 5. favorable report on Senator Huston's bill which provides that ex-soldiers and sailors must be given preference in ail public employment. and all publie con tracts. The committee made a few mi' nor amendments and the report and emendents wero adonicA. Senator ilddy introduced a bill wWch provides that unicipalities having a lieu on property must bo made a party to all tax foreclosure suits against such prop erty. It ijIbo gives the municipality authority to use its funds to redoom proporty against which it has a lien and against whjeh the taxes are delin quent. In the casof'of the sale of prop erly on foreclosure of tax liens, the mu nicipality having r Hon may be a biddor and miy in tho proporty, Monoy spoilt for this purpose may be added by the municipality to -tho amount of its lien nnd in case the proporty ig redeemed the entire amount can bo .recovered from the property owner. - SENATE AND HOUSE TO TALK ROADS :TCH Date Of Meeting Changed Af ter Much Sparring Between Two Houses. A public meeting of tho senato and house committees on roads and high ways will ibo held tonight in the 'bouse of representatives for the purpose of hearing addresses from mombers of the state highway commission en proposed road legislation. This date was fixed after much spar ring betwoen the senate and house, and was a decided victory ifor Senator Thomas, who introduced tho resolution providing for the meeting. The final date, was fixed by conference commit tees, which were appointed by the eon ate and the house after the senate had rofuaed to concur in an amendment mado by tho house postponing the date of the meeting until next Monday night The original resolution called for a public meeting last night. The senate amended the resolution, postponing the timo until next Thursday night. Then the house amended it again, postponing the meeting until next Monday night. Thig was too much for Senator Thomas and some of the other support ers of the resolution, so when Senator Orton mado a motion to concur in the house amendment Senators Thomas and Lachmund jumped all over him. The sonated stood by them and voted down tho amendment. "I can't understand the motive for seeking thig delay," said Senator Thomas, "unless somebody is waiting for some outside person to draft a bill and bring it in when It is too late to give us time to consider it. I am op posed to any ifurthcr dely ia getting the information! which tha highway commission can give us." Senator Lachmund opposed the de lay, saying if there was any informa tion which the members do not have about roads and highways sow ia tha time to get it. A committee of three, comprised of Senators Wood, J. C. Smith and Niek elsen, was appointed by President Vin ton to co-operate with a like committee from the house in drafting regulations for guarding against the flu. iWith aaaaimous rote, tha seaata adopted Senator Bitner 'i resolution pro riding for a joins session of the two houses of tho legislature cn -February 9 as a memorial to Theodors Boosevelt Senator Pieree introduced a bill pro viding that the members of tha state highway commission shall receive sal aries of $4000 a year each, and shall give their entire time to the duties their "ffiee. WISCONSIN PABTICTTLAB Alcohol and gasoline can't be mixed in Wisconsin's aerial domain. A state dry law now being framed provides no whis key shall bo carried or drunk in an airplane. MAYOR AUTHORIZED TO UFT BAN VIitH REALTH BOARD RECOMMENDS IT (Jsaiiiity Aid Varriy Of Essi tess Dispssd Cf At Cosn-' Th regular eeunsil meeting last eve ning brought out all but two of the aldermen, and the two-hourg session touched 8 high mark in the variety and quantity of business disposed of. Bo ports from the various departments werepresented by the recorder and sent through almost without comment. The Oratory of the session focussed upon the influenza situation, the proposed suit against the state fair board and the long drawn eity water case, while an overplus of brain energy was de voted to minor feature of janitor's sal ary. The committer on health brought in a report showing the Bed Cross mer gency work had created to date au ex pense of $1221, a large part of which was used in purchasing equipment for tiho emergency hospital. It was suggest ed that this amount might be mater ially lessened later by re-selling uten sils, furniture, etc., and it was thought that eventually the cost of the hospit al would be reduced by at least $200 which would be paid in by patients who wero able to pay for the service. An additional expense of $334 had been incurred for the services of nurses hi caring for . cases in different parts of the city. A motion that four doctors be named by tho mayor to act in con junction, with the health committee in dealing with the situation was carried without dissent. But when later a res olution was presented authorizing tho mayor to declare tho ban removed on the recommendation of the health board, thero was a flaro-foaek of oppo sition, the objectors holding that as the town had been closed by action of the council, that body should act m lifting the ban. Dr. Utter reassured by stating that it was only desired to en able the mayor to act in tho matter without the formality of a special ses sion of tho council Tho resolution fin ally" carried with two dissenting votes. ' Committee Appointed The proposition- to form a special committee to co-operate with tho health board in a campaign of education and offort to stump out tho plaguo drew a little display ef . fireworks, as one al derman considered it uncalled for af ter, appointing four doctors for this purpose. The motion iiinnuy went tnru with the provision that the committee be made up of the mayor, tho board of health, the president of tho Com mercial club, tho president ol the ltea Cross, two editors, one doctor, ono drug gist, one banker and one preacher a combination that should stamp out any plague by sheer force of personality. Tho mossy and cobwebbed case of lhe city versus the water company was again brought to the fore through a (Continued on page two) 5.36 INCHES Of RAIN .HAS FALLEN IN 1919 Precipitation Tips Far Indi cates Heavier Kami all Than Usual In January. Although it has been raininc pretty steady off and on for the past week there has no great amount of rain fall en gince Jan. 15 when the wet spell be- Last Wednesday the precipitation was .38 of an inch followed by .30 of an inch Thursday. On Friday Jan. 17, the rain fall was heavier with 1.90 es and the next day with .15 of an inch. The heavy rainfall for this wet spell was for the 24 hours ending at 8 o 'clock Sunday morning when the precipitation was 2.20 inches. For the 24 hours end ing Monday morning of this week 'it was .1.1 of an inch and for the same time ending 8 o'clock thig morning it was .28 of an inch. These records are from the government's officii. 1 rain guage. Hence for the past week there has been S.3fl inches of rain up to the rec ord of the 21st, all of whieh indicates pretty well that January of 1919 will be somewhat wetter than the average first motith of the yes-r. For the past five years the rainfall in January has been as follows: 1914, 8.89 inches; 1915. 4.05 inches; 1910, 0.12 inches; 1917, 1.30 inches and 1918, 4.39 inches. Tho river this morning at 8 o'clock was 17.S feet above zero. Tho flood stage of the sudden rise the past week wss Monday morning when the water reached ld.O feet above and was cov ering the dock of the Oregon City Transportation warehouse. About noon yesterday the water began receding and by 8 o'clock last nigt had ftllen to The Pacific Coast Steel company at 11.2 feet. According to the estimates Youngstown, was not affected by the of the weather office1, the flood stage ' strike. The strike conference commit haa been rei.fhcd and the river will tee of the metal trades couneil was in urudunllv fall, iiuiwilhstnnding the lo- - cal itins. ' iContiuucd on page three) Apparently Elected Philip Scheidemann In Berlin, White Independent Socialists Elected Hugo Haase And Po lice President Eichom. Matbias Erzberger Also Re ceived High Vote In German Capital. ' Bcrtia. Jan. 80. Spartncang succeed ed ia preventing the national elections Sunday in Hamburg and several Bhine land towns, it was learned today.. In this region, it was believed the vote wonio Oiave favored thei centrist (church) party amd the German demo- crate (liberals) so the apparent country wide fcr?in of the majority socialists in the national assembly is not serious ly affected. According to the latest available re turns the various parties won tha fol lowing districts: Majority socialists, city of nerim (result close); Wurttembure, Lorraich, Mecklenburg, Lubec.k, Northern Schlos wig, Hanover, Dresden, Bremen, Ham bun. Nuremibure, Chemnitz, Centrists--(coalition of Catholics and protestants) Bavaria (including sev eral districts), Freiburg, Waldshut, Sackingon, Constance, esat Prussia. Gorman democrats Mannheim, Dan zig, Barmen. i Independent (independent socialists an,d Spartacans) Frankfort-on-tho-Main, Bnimswick. Nationalist 'Elborfold, Madgeburg. Peoples party (pan-Germans) None. Schiedemann Elected In Berlin tho majority socialists ap parently had elected Philip Scheide SEATTLE Al TAC01 LA R G Ex PROPORTIONS Unions Affiliated With Metal Trades Council Walk Out This Morning. Seattle, Wash., Jan. 21.--Y.'ith 30,000 shipyard workers on strike in Seattle and 13,000 in Tacoma, tho greatest in dustrial battle in the history of tho northwest began at 10 o'clock thit morning- In addition to this number 8,000 car penters in Seattle are thrown out of work although they opposed tho strike. Sirens and wh sties screeched at the appointed time, notifying the men that the strike hour had arrived. Immediate ly they laid down their tools, and walk ed out. They poured out of the Skinner and Eddy yards by tho thousands, 12,500 men in all quitting at the banner shipyard of the country. Approximately 2500 quit at the Ames yard and similar numbers left work at the Duthie plant and the Seattle North Pacific Shipyard ana the Meauie wortn racuic cnipyara , company. ooi ' um u,w.u, T'wVr".0. wec-oa! affected. Whilo the stroets were Joa gested when tho strikers walked out, no disturbances of any kind occurred. Strike Followed Refusal. The strike order was issued by the Metal Trades Council following the fusal of tho employers to accept the new basic wage scale of $8 for machin ists, $7 for skilled labor and $6 for un- .,..: i.v.. . . -ii,t k.,. a,.. win thi, Btrike and ,ccur, inch-!mll)(,UnHal American wages for Seattle labor," declared Bert Swain, secretary p n,.fil trmAna pnitnpil at n'nnn to- aay ' 'Public sentiment is with us." Tha entire northwest, as represented by orgasized labor, is solidly back of the local strike, Swain declared. "I have nothing to say," stated D B. Skinner, president of tho big Skinner and Eddy plant when told tha men at bis plant had stopped work. 'Oar case seems to be clear. It Is one of the unfair demands on us, that the public must recognize without elab oration or comment, " said Edgar Ames president of the Ames plant. It it iatimated by these in touch with th employors, who Jiave obtain ed ''inside" information from th em ployers' conferences of last week that the strike will be a long one- Whss the strike whistles blew, the men laid down their tools quietly and walked eut without disturbance. Instead of loitering about the gates, th strik ers boarded cars for their homes, some stopping down town o purchase sup plies for their families. A number of small yards and contract shops, having signed the new blanket acreement. continued operating. mann, Biehard Tiseher, Wilhelm Pfan nezluck, Bobert Schmidt and Hags Hcidmann; the independent socialists, Hugo Haase, Police President Eichora, Louisa Zeiss and Herr Laukaut; tha German democrat, Gustave Hartmaaa and Herr Naumann and the centrists, nationalists and peoples party, co-cpe-sting, Wilhelm Karl, Herr KardoCf and Herr (Lodrowcnta. Iater returns showed that Mafltiast Erzberger, chairman of tho Gcrmaa armistice commission and leader of th centrist pariy, Friedrich Voa Payer, former vice chancellor; Herr Ha mann and Herr GrOtbrr a so had team. ejected in Berlin. The majority socialists won 'am 'asy victory in northern Schleswig which. was ono or ine iirsi oiwij-'ctb io jo'" the revolution. Prussia, which hitherto has been regarded as strongly against that party, polled 100,000 votca for the majority socialist candidates, against 117,000 for the conservativesw In Hanover the majority socialists won overwhelmimlv irettina 120.000 votes- to 3000 for the inilepcndejit socialis's, returng from Dresden, Bremen and Hamburg showed similar victories for the majority socialists ovor the indo- Pyidents. 1 7 IN HOUSE TODAY 111 However Other Business Was Scarce At This Morning's k Meeting. ' Te house of representatives Is about out of a job. That it, things are run ning along so smoothly thut aftor Ilia roll call this morning and the second reading of bills by -.titles only, and n no committees to report nnd no bills coming up for final passage, there waa nothing to do except t0 adjourn until 11118 I'llLTllUOil. Members of tho house are taking their jobs seriously. Early each morn- -itig the majority of thein are at their desks, perusing bills or dictating to their stenographers, generally attrac tive ones. The mode of operation is such that l.iii tin. Kaaii introduced, it ia reforrcd to the proper committee. Tha bill is again read the second timo ana un.( tho commHtee lnake, a ro. t . WU is out of 8 ght as far St th c,y member is concerned. Tha u" - .. ,i ; nm- real work is of course done in the com "ee rooms. .Bi However, before the m o mm do of this worming adjourn.d th following re-ibillg were introduced. (Continued oa page two) ABE MARTIN Th' purticr th handle th' poorer th' umbrellor. No girl ever laced so tight she couldn't eat throe dollars wort after t' show. BlUSIIITRODUCEfi '