Richmond Palladium (Daily), Volume 44, Number 260, 14 August 1919 — Page 1

RICHMONB PAI ABIUM ft 701, XT .TV NO 9fU Palladium. Est. 1SS1. Consolidated RICHMOND, IND., THURSDAY EVENING, AUGUST 14, 1919 SINGLE COPY 3 CENTS with Bun-Tele lenrram HOT.

THE

FIXED RETURN FOR INVESTOR IN RAILROADS IS NEW PLAN Warfield System Submitted to Committee Would Divide Surplus Among Public, Employes and Railroads.

U. S. WILL CONTROL (By AMoclatod Press) WASHINGTON. Aug. 14. The Warfield plan for railroad control -with provision for a flat return of bIx per cent on capital invested, was present ed today to the House interstate commerce commltee by Luther M. Walter, general counsel of the national association of owners of railroad securities. The fundamentals of the plan, including division of all surplus over the fixed return among employes, the public and the road earning it, were explained by Mr. Walter, who declared It could be put into effect immediately. "The keystone of the Warfield plan," the witness said, "is a congressional direction to the Interstate Commerce Commission that it shall make freight and passenger rates sufficient to pay operating expenses, maintain railroad properties and give not less j than six per cent return upon the aggregate fair value of the property devoted to transportation in each of the principal traffic territories." Opposes Cabinet Place. Mr. Walter opposed federal incorporation, a transportation and a secretary of transportation in the cabinet and declared that under the minimum return plan the net result of operations in the pre-war test period, the basis of government rental, some of the carriers would have turned In a surplus for division between employes and the public. He said the financial structure of credits depended upon the legislation enacted by this congress to deal with the railroad problem. The association he said, used the property investment account of the carriers as the basis upon which to apply the six per cent, lecause the Interstate Commerce commission had found that the only available basis for prompt determination of sufficiency of the return- upon investment. It was a fundamental of the Warfield plan, the witness said, that labor rhould participate in the earnings of the carriers. "We believe," he declared, "that capital is entitled to its return of six per cent; that labor is entitled to a fair wage, and that the excess earned by the carriers after paying fair wages and six per cent on capital ehould be divided with labor and the public. Labor's share should be used for the establishment of the insurance of the Insurance system or for profitsharing. By reason of the largely increased duties which fall upon the commission the security holders ask congress to create six regional interstate commerce commissions, subordinate to the commission but with all the powers of the Interstate Commerce commission in their respective territories. Regional Commission "Our plan contemplates that these regional commissions shall act as boards of conciliation in settling wage disputes, being a body close to the employes, the carriers and the shippers. "The issuance of securities of all carriers engaged in inter-state commerce would be vested exclusively in federal authority. "This plan would create a corporation operated without profit to the railroads and managed by the nine inter-state commerce commissioners and eight railroad men selected by the railroads. This corporation would furnish expert advice to the commission in the operation of carriers, would unify terminals, would operate equipment such as has been built by ihe railroad administration and allocated to the individual railroads. It would furnish a great clearing house for railroad operation and in times of emergency would constitute the directing force for the handling of the railroads as a single system. In contending that six percent, as the proper return would not be questioned, Mr. Walter said: "Even Mr. Plumb, the great exponent of low returns, admits that six percent, is not an excessive return under private operation." Three to Share Surplus The great mass of the people, he said, were vitally concerned in the integrity of railroad securities. The association believed the surplus over the fixed return should be divided equally among the employes, the public and the earning road, one third to the road "to encourage incentive and initiative in operation." "The Warfield plan, Mr. Walter said in closing, would create a corporation operated without profit to the railroads and under federal control, directed by trustees, the nine Interstate commerce commissioners and eight railroad men. to finance in the present emergency such equipment as may be purchased by it from the railroad administration and allocated to the railroads and furnish immediate means for assisting in financing the return of the roads, the corporation to be continued as a permanent means for mobilizing and purchasing equipment to be leased to the roads, this corporation to have control of the exceS3 earnings reduction fund. "It would provide a management or agency to continue to put into effect the joint use of terminals, uni:ication of facilities, re-routing of freight by pooling or otherwise, and to continue to adopt such methods of operation as may have been found Continued On Page Thirteen.

Jap Envoy at Pekin Complains of Boycott

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Minister Obata Mr. Obata, the Japanese minister at Pekin, has protested in the strong est terms to the Chinese government against the present boycott. He complains that Japanese steamships cannot discharge their cargoes and that Japanese merchants are losing heavily, something for which they will later demand indemnities from China According to recent reports from the Chinese capital, the Japanese re sidents of Pekin have been warned to remain indoors at night because of the ill-feeling agajnst Japan on the part of the Chinese. INCREASED -RATES WILL BE ASKED BY CITY WATER WORKS An increase in rates will be asked by the Richmond Water Works, in a petition to be submitted to the Indi ana Public Service commission, by the attorney for the company, In the next few days, according to Howard A. Dill, president of the water works. Dill said that the company has been contemplating this action because of the increase in expense. The company is supposed to get six and onehalf per cent on their investment. With the increase in expense and additional Investments that have been made from time to time, the company claims to be unable to derive their profits allowed them by the commission. The exact rate to be asked for hos yet been determined, and will not be until the hearing Is granted and the date set for It. GREY'S APPOINTMENT APPROVED BY PRESS T!y Associated Press) LONDON, Aug. 14. Viscount Grey's acceptance of the appointment of temporary British ambassador to the United States is given warm approval ! by the press here, which eulogizes his ! public services and for the most part, j reeards his appointment as excellentThere is, however, dissatisfied crltli cism in some quarters, not on the I ground of Viscount Grey's fitness or acceptability to America, but because I of the extraordinary responsibilities ! attaching to the post at this moment. I Doubt is.expresp.sd whether the nam ing of a temporary ambassador Is suitable for theis reason. The Daily News severely scores the government for making an "emergency appointment," adding: "to chose a statesman who for more than two years has been out of touch with political life is. to say the least, a singular proceeding." The newspaper, which is an admirer of Viscount Grey, says his task will be singularly delicate, his power at best being limited. The Post, which is an opponena of Viscount Grey politically, nevertheless assumes that America will regard his appointment as a compliment, as he is a notable Englishman, but it hopes that Viscount Grey will not forget that America respects a man who stands firmly upon the rights and interests of his own nation. In the past there has been a weak tradition of surrender at Washington, mainly due to the pusillanimous and unmanly poliey of the goernment at home." In most of the editorials, Viscount Grey's sympathy with the league of nations is dwelt upon, though the Telegraph remarks he has not revealed whether he champions the particular form of the league of nations incorporated in the peace treaty. The Chronicle regards it as particularly fortunate he is going to America, now, saying, "for, with his rare tact and knowledge, he will be especially qualified to take council, both with President Wilson and those who are not satisfied with all the terms of the league of nations covenant."

RUMANIA MAKES

BITTER ATTACK UPON ENTENTE Threat Made to Strip Country if Army is Forced Out of Hungary. (By Associated Press) AMSTERDAM. Aug. 14. Rumanian troops are about to leave Budapest in consequence of the note sent to Rumania by the peace conference, according to a wireless received here from Vienna Quoting newspapers of that city. VIENNA. Aug. 14. A statement at tacking England and America, de manding that Hungary be united with Rumania under the sovereignty of King Ferdinand and threatening to strip Hungary if the Rumanian army is forced to withdraw from that coun try, has been presented to Archduke Joseph, head of the Hungarian government, by the authorized Rumanian representative at Budapest, according to dispatches received here. The text of the statement, accord ing to report follows: "There are 260,000 workmen in Budapest who are only waiting for the Rumanians to leave Hungary, to immediately take the situation into their own hands, which means a return to Bolshevism The Hungarian government cannot de pend upon the entente powers for as' slstance, for these powers have with drawn all their troops from Russia, and America is unwilling to send single soldier. We do not trust the entente which only wants to humiliate us. We are willing to withdraw our troops if necessary, starting tomorrow morning, but we will carry off every thing and strip the country just as Field Marshal Mackensen did Ru mania. "The only grudge the entente has against us is that we refuse to have English and American capital dominate Rumania. Hungary must follow Rumania's policy in not accepting English and American capital. What ever would remain after the Rumanians retreat would be taken by the entente anyway. The entente idea is to hare Rumania and Hungary fight and destroy each other, the entente thereby getting all. There is only one policy for Hungary to pursue, that Is a junction between Hungary and Rumania, ruled by the Rumanian king. We do not care what the entente or Premier Clemenceau of France want to do or is doing. We will follow our own policy. "We expect an answer from Arch duke Joseph, head of the government, by eight o'clock tonight. If an answer is not received by that time we shall Inform Bucharest, which shall decide opon what action should be taken." OPPOSES ARCHDUKE. PARIS, Wednesday, Aug. 13. Rumania in nowise favors the installa tion of Archduke Joseph in power in Hungary, according to a declaration made to the Temps by Victor Antonesco, Rumanian minister here. "The Bucharest government has no reason for sympathy, either for the Archduke personally or the reactionary regime which he represents," M. Antonesco says. "Rumania certainly will not support any government in Buda Pest, which is not acceptable to the entente." In discussing the alleged seizures of supplies in Hungary by Rumanian forces, the minister says: "The Rumanian army's requisitions do not nearly approach those of the Hungarians in Rumania during the war. Rumanian representatives In Budapest have received strict instructions to examine this question in accordance with entente representatives. M. Antonesco continues by saying that the "happy result" of Rumania's intervention has been to permit allied and associated, representatives to reenter Buda Pest and the suppression of Bolshevik propoganda. He says that it is now the task of the aliles with Rumania's assistance to install in Buda Pest a government with which a definite peace may be concluded. "I am sure," he concludes, "the allies will find our representatives devoted and friendly collaborators. The bonds of union, between France and Rumania especially are too strong ever to be broken for mere questions of form." ACTION STILL DELAYED. PARIS, Wednesday, Aug. 13. The supreme council considered the Hungarian question this afternoon but as replies have not been received from Rumania the council had no official advices from that country concerning its attitude. Despatches from the Inter-allied military commission containing inquiries as to that body's powers were considered and the council sent additional instructions to Buda Pest. It is understood that the mission was advised that orders are not to be given to the commanders of the Rumanian army but that members of the mission should hold themselves in readiness to confer with Rumanian officials pre paratory to an adjustment of strained situation. the European War Was Most Bloody in All History, Casualty Reports Show (By Associated Press) WASHINGTON, Aug. 14. An analysis of the "final" casualty report received from the Central Records Office in France, shows that the European war wa3 the most sanguinary in history. Battle deaths among American enlisted men averaged 8 per thousand, among emergency offiicers 11 per thousand and among regular army officers, 14. Of every 1,000 officers landed In France 330 were killed or wounded. Battle deaths were 37 per thousand for graduates of West Point against 18 or non graduates.

REPORT ALLEGED

PROFITEER HERE TO STATC HEADS Prosecutor Freeman to Turn Evidence Over to State Authorities Friday. War on food profiteers In Wayne county will be started in Indianapolis Friday, when Prosecuting Attorney Gath Freeman will turn over to L. Ert Slack, United States District attorney, evidence of food profiteering, both among wholesale and retail food deal ers in the county, according to a statement made by him Thursday morning. Evidence was given to the prose cuting attorney by W. A. Hunt, city market master, of two instances where sugar was sold or offered for sale to retailers at 12 cents a pound, which is above the fair price favored by the government local grocer tried to purchase sugar of a wholesale firm, and was informed that the sugar would cost him 12 cents a pound. Another grocer, living in Abington, purchased sugar from the firm for 12 cents. Didn't Want to Sell. Members of the wholesale firm, according to the prosecuting attorney, have offered the fact that they have only enough sugar for their regular customers, as their reason for increasing the price to other grocers. They claimed that they did not wish to sell to the other grocers. Prosecutor Freeman will go to India napolis Friday and will confer with the United States district attorney on the food situation in Wayne county, and it is probable that some action will be taken to stop profiteering, either by the federal or state authorities. Numerous other Instances have been cited of alleged food profiteering, but so far the prosecuting attorney has been unable to get at the real facts, except in the case above mentioned. One case brought to the attention of the prosecuting attorney of a local retail grocery selling sugar at 13 cents a pound, in lost of more than one pound. Gilbert May Act No orders concerning the organization of the wartime county food administration have been received by Harry N. Gilbert, former head of the organization. Mr. Gilbert sent his resignation as head of the organization to the state food officials several days ago, but has not received any reply to his communication. He said Thursday morning that the federal officials might order the food administrators to act, and might not accept his resignation. GREATER PRODUCTION URGED UPON ENGLAND (By Associated Press) LONDON. Aug. 14. Increased production is England's only hope for decreased living costs in the opinion of Britain's food controller, G. H. Roberts. Addressing a meeting of Yorkshire food committees Controller Roberts declared, "I cannot honestly hold out any hopes that prices will be any lower this winter. Without increased production we shall never get rW of the burden of high prices." "Miners and other workers exercise a more potent influence on food prices than I do," Mr. Roberts stated at another meeting. "We have to persuade the miners and workers into a recognition of their responsibilities because when they slack in their work they do harm to every member of the population. Without the cooperation of every class In the country, we may start to write the decline and fall of the British empire." Belgian Labor Enters Move Against Prices (By Associated Press) BRUSSELS, Wednesday, Aug. 13. The Labor party has published a manifesto inviting the people to join In a general movement against the high cost of living and in a letter addressed to the prime minister has suggested a series of measures Intended to arrest the Increased price of necessities to encourage the home growing of food and to assure an equal distribution of imports. Other measures proposed are the requisition of wheat, sugar, milk and butter, the fixing of food prices and government control of prices for coal, clothing and shoes. The party also urges the education of housewives and the opening of international negotiations with the view to fixing basis prices for staple food, establishing International transport tariffs and helping devastated countries by extending international credit by means of Inter national coin. All "Smoking Cars'' On English Trains Now (By Associated Press) LONDON, Aug. 14. So many Eng lish women have become confirmed smokers that in recent months railway employes have hestltated to enforce the rules against smoking In certain carriages and it has become to be accepted that if the women passengers do not object every compartment becomes "a smoking car." The Great Eastern Railway whose general manager is General Henry Thornton, formerly of the Pennsylvania and Long Island systems in America Is the first of the railroads to change the existing order and move for a return to pre-war conditions. By a recent order only such compartments as are resignated "smoking" can be used for that purpose and even though all the passengers may consent no concessions are made to women. If they want to smoke they are to be referred to regular smoking I compartments.

Lack of Production is Retarding Europe's Recovery From Wreck of War, Says Expert

NEW YORK, Aug. 15 Dr. A. E. Taylor of the University of Pennsylvania, and chief of surveys of the American relief administration, returned from a tour of the war-torn countries of Europe recently and gave an interesting outline of the situation abroad. Poland, Dr. Taylor said, faces a hopeful situation, although there Is a great scarcity of work horses in that country. The crops that are being harvested promise to cover about three-fourths of her requirements. He said that it was gratiflylng to note that In Poland the production of coal is increasing. The political sky will cloud frequently during the year, he said, and one reason for this is that the racial problem in Polond is one of the hardest to solve that the country faces. Paderewskl Remarkable Leader "The present premier, Paderewskl. so well known to the American, people as an interpreter of Chopin, is today as remarkable in the political world as he er was in the world, of art." said Dr. Taylor. "All Americans who have come into close offi cial association with him testify j1' t0 bla unu9Ual intellectual ability Austria Is in very bad shape, Dr. Taylor said. With a population of 6.000,000 and 1,000,000 of these in the capital, Austria, he said cannot be self-supporting agriculturally, and, added to her other troubles, her currency is practically worthless, and she will have to be fed during the next year by some other country. He pointed out the wonderful opportunities for development In Austria through her water power; that she might join Germany and share her fortunes, or she might become a charge upon the charity of the world. Europe's Great Defect. Czecho-Slovakia is in good condition, said Dr. Taylor, and the Serbs, Croats and Slovenese are busy harvesting a god crop. In Rumania a small crop is being harvested, and that is because the Germans stripped the country. Rumania Is being carried to the harvest by American and British foodstuffs. "The great defect In central Europe today. Indeed, In Europe as a whole, is failure of production," he continued. "Loss of man-power is not responsible for this condition, since in all countries unemployed men are CLAIM OFFICIALS NOT TO BLAME FOR DEATH OF CAVELL (By Associated Press) COPENHAGEN, Aug. 14. An attempt to relieve German authorities of blame for the execution of the British nurse, Edith Cavell, In Brussels, October 13, 1915, is made in an article printed in the Berlin Deutsche Allgemelne Zeltung, received here today. The article which it Is asserted is based on documentary evidence says Edith Cavell, as an assistant of Prince Reginald of Croy, abused the trust placed in her as one engaged in philanthropic work by concealing officers and men of allied nationalities until they could cross the frontier. Miss Cavell's guide, Gillies, is said in the article to have conducted 300 men over the border. Sentence of death was imposed upon Miss Cavell by the court martial, it is asserted, by unanimous decision and the sentence was confirmed principally because the Germans held that the nurse had been guilty of breach of trust. GIANTS TAKE BOTH GAMES FROM GINCY NEW YORK, Aug. 14. New York defeated Cincinnati in fourteen innings this afternoon in the first game, two to one. Ring and Toney had a great pitching duel. The score: R H E Cinci 000 001 000 000 001 9 1 N. York 001 000 100 000 002 11 2 Ring and Wingo; Toney and McCarthy. SECOND IS FARCE NEW YORK, Aug. 14. New York drove Bresler and Luque from the mound in the second game today, winning 9 to 3. The score: R. H. E. Cincinnati. 0 00000102. 3 9 i jNew York. 2 4 2 0 0 0 1 0 0.9 11 3 t Bresler. Luaue. Gerner and Rariden; Benton, Douglass and Snyder. POSTPONE RACES AGAIN. PHILADELPHIA. Aug. 14. The grand circuit trots were again postponed today because of rain. A double program has been arranged for tomorrow and Saturday. Weather Forecast For Indiana by the United States Weather Bureau Partly cloudy tonight and Friday partly cloudy. Probably showers and thunderstorms in north portion. Today's Temperature. Noon 82 Yesterday. Maximum 76 Minimum 57 For Wayne County by W. E. Moore Increasing cloudiness, becoming unsetled tonight and Friday, probably followed by thundershowers. General Conditions The Btorm of yesterday is moving eastward, causing light and heavy local rains in Indiana. The heaviest part over eastern Indiana was in Union and parts of Wayne county. Another storm is reported over the northwest and is causing unsettled weather to develop north of the Ohio river, especially near the Great Lakes.

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F. Taylor drawing ' out-of-work stipends The causes of the reduced productilty may be summarized under six headings: "1. Scarcity of coal. "2. Scarcity of raw material. "3 Scarcity of food. "4. Depreciation of currency. "6. Disinclination to work on the part of labor. "6. Loss of initiative and enterprise on the part of capital. Before the war, Europe, outside of Russia, Imported fourteen or fifteen (Continued on Page Thirteen.) CONFERENCE IS ASKED WILSON BY COMMITTEE Foreign Relations Committee to Visit President Reservations to be Discussed. (By Associated Press) WASHINGTON, Aug. 14. After a two-hour discussion today the senate foreign relations committee decided to rotlfy President Wilson that it wouid call on him at the White house at his convenience to discuss the peace treaty. The committee also decided to call before it E. T. Williams, S. K. Hornbeck and William C. Bullitt, who resigned as advisor to the American peace commission at Paris because, it has been reported, they disagreed with decisions by the conference. A motion to call also Colonel House, General Bliss and Henry White, American delegates to the peace conference, was voted down 9 to 8, Senator McCumber, North Dakota, and Harding, Ohio, Republicans, voting with the Democrats. Time Is Undecided. In deciding to request a conference with President Wilson, on which there was no committee vote, it as agreed that all information secured from the president should be made public. There was no Indication at the White house when the president would receive the committee. To inquiries, Secretary Tumulty said: "We have no comment to make." Speculation at the capitol as to the purpose of the committee in requesting that the president receive It revolved around the subject of reservation to the treaty and the league covenant. Before the committee acted it had been intimated at the White house that the president had not changed his attiude against reservations. BARNARD TO NAME PRICE MEN HERE INDIANAPOLIS, Ind., August 14. Announcement was made Thursday afternoon by H. E. Barnard, head of tne state iooa administration, that a fair price committee would be appointed for Wayne county, to aid the state food administration in its investigation of food profiteering in that county. Barnard said that he did not intend to appoint a successor to Harry N. Gilbert, whose resignation as head of the Wayne county food organization has been accepted, but that he will ask for the names of several Wayne county persons who will co-operate with the state and federal authorities in the investigation of food conditions in the county. "We want a fair price committee in Wayne county," Barnard said, "and I am going to ask for suggestions for people who will serve on this committee. The committee will ultimately be named from this office, but I want the views of the people of Wayne county as to who will be the best persons to appoint for the place." No report has been made to the office of the state food administration concerning the alleged unfair price charges for sugar by a Richmond wholesale merchant. Barnard said that this report had been made to the office of the attorney general, and that the investigation would be conducted further from there. PALMER WILL PROSECUTE. WASHINGTON, Aug. 14. Attorney General Palmer told the senate agriculture committee today that it was his intention to prosecute all dealers In necessities selling above the priceB to be determined by price committees in cities and counties as fair and just.

Dr. A.

EXTENSION OF PROFITEERING LAW IS URGED BY OFFICIALS

Would Include Clothing and Other Necessities in Amendments to Food Control Act Opinion Divided. ASK FUND OF CONGRESS (By Associated Fres) WASHINGTON, Aug. 14 Appropriations totaling nearly $600,000 with which to help carry out the president's suggestions for reducing living costs were asked of congress today by the agricultural department, SUGAR PRICE NOT FIXED WASHINGTON. Aug. 14. Recent opinions by food administration officials that eleven cents was a fair price for sugar are being transmitted by the department of justice to district attorenys for their information In the campaign against profiteering. Attorney General Palmer said, however, that no price for sugar could be fixed by the government. Mr. Palmer was to appear later today before the senate agricultural committee to explain amendments to the food control act extending antiprofiterlng sections to clothing and other necessities and providing penalties for violation of the law. When the committee met today senators expressed opinions as to the necessity of the legislation. "If we amend this bill," said Senator Smith, Democrat, South Carolina, "It will mean we will Include ever-' article of commerce and put commerce of America in the hands of the department of Justice." Secretary Houston wrote that the funds requested which he used in fur nishing the people of the country inrormation regarding the stocks of fod products held in storage and retail food prices. This information would be disseminated through newspapers and otherwise and would be published every day or two. TEST CASE PLANNED CHICAGO, Aug. 14. As a test case against alleged food hoarders and profiteers, action was planned for today by department of justice officials against the Central Sugar company of Chicago, on complaint that the firm has 70.000 pounds of sugar in Rockford. 111., where it is said 14 cents a pound is being asked for it. George W. Sheehan. president of the company, George P. Leinberger office manager and George L. Dowd, and L. J. Shaffer, sales managers were arrested on similiar charges in Pittsburgh a week ago. Authority to act as once In the confiscation of hoarded foodstocks was contained in a telegram to the district atorney's office from Attorney General Palmer. Announcement of the intention of the government to start the sugar distribution committee of the fod administration after a conference with assistant United States district Attorney R. A. Milroy. Action against all food hoarders, he 6ald, would be under the libel clause of the food control act, which porvldes confiscation and re-sale. WOMEN OF CITY TO FIGHT H. C. L Women representaive of the whole city will meet Friday morning to consider ways and means of attacking the high cost of living problem in the city, at the board meeting of the Departmental club, representing every club organization in the city. Mrs. Paul Comstock. president of the Departmental club, announced Thursday that the cost of living problems would be considered and plans adopted. One of the plans to be considered Is the formation of a housewives' union, such as that organized at Indianapolis Wednesday, by which housewives pledge themselves to fight profiteering as a whole and not In groups. DEMOCRATS COME TO BLOWS IN HOUSE (By Associated Pressl WASHINGTON. Aug. 14. Members of the house intervened today to prevent a personal collision between Representatives Blanton and Hardy, of Texas, both Democrats. Resenting the charge by Blanton that he was "a mere rubber stamp," in the sense that he always defended the administration, Hardy rushed at his colleague but was restrained. JOHN BENNING, OLD RESIDENT, IS DEAD John Benning, 70 years old, died Thursday morning at his home, 128 South Tenth street. . Mr. Benning was an old resident of Richmond and for a number of years until the time of his last illness owned and managed a livery business on Main street, and later on South Eleventh street. Surviving members of his family are three children, Mrs. Al Spekenhier of Bogoloosa Louislanna, George Benning. and Miss Effle Benning, of this city. Funeral arrangements will be announced later.