Richmond Palladium (Daily), Volume 46, Number 215, 21 July 1921 — Page 1

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A II A VOL. XLVL, No. 215 Palladium. Est. 1831. Consolidated with Sun-Teiegram, 1907. RICHMOND, IND., THURSDAY EVENING,' JULY 21, 1921.' SINGLE COPY 3 CENTS BUSINESS IS HEADED FOR PROSPERITY Say North Ireland Must Not Be Ruled by South LLOYD GEORGE SUBMITS HIS PEACEfOINTS Communique Conceals' Whe Says Planes Will ' Be Big Factor in Future Defense GRAVE CRISIS SPRINGS UP OVER SILESIA Government Officials Believe Worst is Over Say Future Will Be Period of Growth France Will Send Reinforce ther Proposals Met with ments Without Waiting for British Move Shocked at Tone of England's Note.

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Flat Rejection or Consideration by de.Valera. - OBJECTIVEUNATTAINED

and Betterment.

CONFIDENCE IS URGED

BT MARK SCL.LIVAN WASHINGTON, D. C. July 21. If any compar lson were attempted of the progress made by the administra tion in its various fields of effort, it would be found that, omitting for eign relations, the grea test achievements have been in what may be con sidered the govern ment's own busi n r R Trmnaeemfnt

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ft I -J and housekeeping.

vigorous house-cleaning now being done by Chairman Lasker, of the shipping board, makes a new speed record eclipsing the one hitherto held by General Dawe's curious combination of evangelism and profanity, dedicated to the service of government economy. Aside from what has been accomplished by these two and by others in the direction of better government housekeeping, the most noticeable progress made by the administration has come from those government agencies which are most concerned with the country's business conditions and most responsible' for its economic prosperity. See Bright Future. The men who constitute the personel of these governmental agencies have gone at their problem with a 'high spirit of aggressiveness. The belief of practically all of them today is that the worst of the business depression is over and that the future will be a period of growth and betterment, of which the speed is dependent more upon business men themselves than upon any other factor. One of the most careful of the authorities here in Washington believes that the principal factor now is the psychology of business men and merchants. It i3 believed that the merchants are as unreasonably timid as they were unreasonably confident two years ago. It has been found that important merchants in some cities are carrying 6tocks of goods only adequate for two or three weeks of consumption. Their motive in carrying such small stocks is the expectation that they will be able to renew them at lower prices. The fame merchants two years ago being then in the psychology of rising prices, had goods ordered ahead for several months. Cuts Are Over. Some of the most cautious of the authorities in Washington do cot believe that this anticipation of lower prices will come true, except as to a few lines which have not yet gone completely through the progress of liquidation. The completeness and thoroughness of the governments organization for helping business are now such that this factor alone ought to be able to change the trend that has been downward for nearly a year past. The federal reserve board has recently taken steps which will make it possible for small banks throughout the country not members of the federal reserve organization to get in large degree, nevertheless, the benefits of that organization. Ease Strain. The War Finance Corporation has done much not only to stimulate exports but also to ease the strain on businessmen who must carry goods until a market develops. While the primary function of the War Finance Corporation if to stimulate exports it is a part of that function to provide credit facilities for business men to carry good destined for export.- and Vrevent those goods from being dumped on tha markets disastrously. In the old days, when Great Britain was the creditor nation of the world, it was the custom for that country to buy the ma.ior portion of the cotton crop soon after it was picked. Great Britain not only consumed a large part of our southern cotton crop, but also, in fact, provided banking facilities to carry that crop from the time it was picked until the time when it should go into the factories, under the changed conditions it is necessary for America to furnish these credit facilities, and the War Finance corporation is doing so to the limit of its power. Relief is Coming. In addition to this, further relief for cattle raisers and farmers is sure to come. Just at this moment it looks as if this relief might come through the passage of the Norris bill in congress which sets up a separate organization for farmer relief. If this help does not come through the passage of the Norris bill, it will be sure to come to an equivalent degree through the federal reserve board, or some other organizations that have the duty of easing the strain on business. All in all. every appearance in Washington leads the most cautious of the government officials who are concerned with such matters to believe that business conditions in the United States are now safely headed toward recovery. (Copyright 1921 by the New York Evening Post, Inc.) REPORT GERMAN CONSORTIUM. Bv Aso-iatM Press) PAIilS. July 21. -The Intransigeant is authority for a report that a German consortium has been formed under the auspices of the Dresdner bank will be installed shortly in Paris.

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The Ulster cabinet. Left to right, above: H. M. Pollock, finance; Sir James Craig, premier, and E. M. Arondale, agriculture. Below: Marquis of Londonderry, education; J. M. Andrews, labor, and Sir Dawson Bates, home secretary. . That Ulster never will consent to any settlement of the Irish question which will leave it subservient to South Ireland is the stand taken by the Ulster cabinet, headed by Sir James Craig. Ulster will recognize no master save the British parliament, declare Craig and his associates. Their attitude, if uncompromising, is likely to wreck the present negotiations for Irish peace. Bill Financing Farm Exports Gets Right-of-Way in Senate Norris Bill, Creating $ 1 00,000,000 Government Export Corporation, Breaks Through Barrier of Partisanship Solons from Farm Districts Support Sixth Interested.

PAILADII'M SEWS BUREAU WASHINGTON. July 21 The Norris bill creating a $100,000,000 government corporation to export American farm products broke through the barrier of partisanship when the senate gave it the right of way over the so-called "anti-beer" bill. The Norri3 measure commands the support of a majority of senators, both Republican and Democrat, who represent the large agricultural states. The group which opposes the bill includes senators of both parties whose constituencies are largely industrial. The measure is of more than ordinary importance to the people of the sixth congressional district of Indiana, which is regarded as one of the richest farming sections in the middle west. Should the measure be the means of restoring prosperity to the farmer, which is claimed for it by its INCOME TAX FIGURES SHOW EARNING POWER OF INDIANA CITIZENS INDIANAPOLIS, Ind.. July 21. Approximately 189,400 Indiana citizens out of a population of adults of a trifle more than 2.100,000, are earning incomes sufficient to warrant them making income returns to the United States government, according to records of the internal revenue depart ment, located in Indianapolis. Of this number, 13,800 are paying taxes on incomes exceeding $5,000, while 123,900 are paying on incomes under that amount. A trifle more than 51,700 are making returns, yet have exemptions sufficient to place them in the "non-pay" class. About 2,500 citizens of this district filed income tax returns this year, according to A. N. Logan, in ternal revenue collector for this district. Figures on the population and number of exemptions were not available, he stated. Daily Interview Every ly a reporter will Interview perxun. picked at random, oa what be regards the wont Important action to hrinic hark prosperity to the whole country. "I think the first essential to secure natural conditions for agriculture and for other lines of business as well, is to get rid of the economic heresies which have sprung up recently," saia A. L. Baldwin, farmer of near Webster, Thursday. That agitators are hindering the progress of this nation and of European nations in repairing war's damages, was the opinion of Mr. Baldwin, who is remembered by many Wayne county citizens as a teacher in earlier days, and as a president of the farm bureau more recently. He Is now the president of the Richmond Farm Loan association, the local branch of the federal farm loan system. "False doctrines," said Mr. Baldwin, " have been propagated not only among laborers, but among farmers and other citizens, and they have increased the discontent resulted from conditions due to, the world conflict. Although these conditions were inevitable, discontent to them was fanned until it brought disaster in Russia. No one believes that we could go so far in the United States, and already this spirit is on the wane. I believe that we will work along constructive lines j in the future."

proponents, and emphatically denied by its opponents, no community would be more benefitted. The Norris bill attempts to provide foreign markets for American farm products to the extent of a billion dollars. It creates a federal corporation, furnishes that corporation with $100,000,000 capital, authorizes it to buy products of American agriculture and export those products to the peoples of the world who need them. The corporation is authorized to accept in return for these products such securities as bonds, government obligations, and on the strength of such (Continued on Page Eleven)

Chicago Bank Closed By State Examiners (By Associated Press) CHICAGO, July 21. The Michigan Avenue Trust company was closed this morning by state bank examiners. An examination of the books was Immediately started. It may take three or four days, officials said. They disclaimed a knowledge of a shortage in the bank's accounts and said the examination was only routine. CONNERSVILLE AUTO THEFT IS DISCUSSED IN COURT WEDNESDAY Alonzo Friend of Connersville, was placed on trial Thursday in Wayne cirouit court charged with grand lar ceny in connection with the theft of an automobile belonging to Fred Rog ers, telegraph operator at Cambridge City, on Monday night. May 16. Friend is thought to have been the head of a small ring that was being formed in Connersville for th(? purpose of stealing automobiles from surrounding towns. Lorenzy Ashcraft and James T. Hamilton, also of Connersville, were arrested in connection with the theft and testified in court Thursday against Friend. Made Special Journey According to testimony presented to the jury, Hamilton, Ashcraft and Friend went to Cambridge City on the night of May 16 for the purpose of stealing an automobile. This they accomplished. Ashcraft and Friend getting in the stolen machine and Hamilton driving his own car back. Connersiville police were notified of the theft and were waiting for the men at the edge of the city. When they ordered Ashcraft and Friend to stop. Friend is said to have rolled out of the car and escaped. Ashcraft was arrested. Friend was later taken into custody as was Hamilton. Merritt Walker, night patrolman of Connersville, testified that he caught a good glimpse of Friend as he escaped from the car. He identified him Thursday in court as the man. Ashcraft and Hamilton also identified him. Ashcraft and Hamilton will be arraigned Friday and it is expected" will enter pleas of guilty. Jago Slavian Minister Assassinated by Red fBy Associated Presal BELGRADE, July 21. Minister of the interior, Drashkovics, of Jugo Slavia, was shot dead this morning by a young Bosnian communist. The assassin was arrested.

' (By Associated Press) - LONDON, July 21. The conversations between Lloyd George and detions, from which it was hoped the basis for an Irish peace conference might emerge have been terminated for the present without that object having been obtained., At the final maotiner rt th British

premier and the Irish Republican leader today, Lloyd George submitted definite proposals which were represented as the considered judgment cf himself and his cabinet as constituting suitable ground for a full fledged peace Darlev based on his interviews durine the last week with de Valera and Sir James Craig. These proposals, it is learned authoritatively, comprise less than 10 articles. Whether they met with a flat rejection by the Irish Republican leader or were taken by him without comment for review by himself and colleagues in Dublin in the hope they might contain the nucleus for negotiations, was concealed by the brief joint communique issued after the meeting. It read: Joint Communique "Mr. Lloyd George and Mr. de Valera had a further conversation at 11:30 this morning lasting about an hour. . The basis for fiirth ence has not yet been found. Mr. devaiera has arranged to return to Ireland tomorrow . and to communicate with Mr. Lloyd George again after further discussion with his colleagues." I It required considerable time for the conferees to draw up the communique issued by agreement after the meeting, and this caused considerable comment, being interpreted as indicating anxiety bv both Kidps tn avnirl a breach in the peace attempts, to con ceal tne tact if an impasse had already occurred. Have Not Despaired After the previous Downing street interviews between Lloyd George and De Valera only a few minutes were required to draft these announce ments. - Mr. de Valera and his col leagues after their return to Irish headquarters expressed their anxiety for the attainment of peace. "We are genuinely desirous of peace and have not yet despaired, but the difficulties are such that progress is necessarily slow. I believe, personally, that definite progress has been made," said one of the members of the delegation. This spokesman for the Irish delegation said the Irish Republican parliament probably would be convened shortly after the return of de Valera for the receipt of his report. The delegation has received no no word, it was said, that the members of this parliament now in prison will be released, so as to enable them to attend. The suggestion that de Valera might go to Belfast to meet Sir James Craig, was characterized as out of the question. Leaves for Dublin. The Republican leader will leave tomorrow morning for Dublin. According to the Evening Standard today the British premier's proposal embodied an offer of dominion home rule for southern Ireland, safeguards for Ulster, important financial concessions, and machinery for co-ordinating Irish government. While failure has marked all efforts to penetrate the official secrecy, home rule is the most favored prediction of those best qualified to see beyond the veil that has obscured details of the negotions since Mr. de Valera came to juonaon. It is understood that the proposals which are said to have been supplemented in many respects by suggestions from Premier J. C. Smuts of South Africa, accord a considerable measure of fiscal freedom to Ireland but avoid extending rights of taxation against England, which the latter might not be able to exercise in return against Ireland. The prime minister presided over a meeting of the cabinet council last night and gave his ministers a detailed history of recent Irish negotiations as well as his own views of the situation. Following this he submitted the proposals which will be rlvn j to Mr. de Valera today, and accord ing to this morning s newspapers the ministers were almost unanimous in support of the premier. ( Weather Forecas? MOORE'S LOCAL FORECAST. Fair Tonight and Friday. Generally fair weather will continue for another 36 hours; rather cool again tonight For Indiana, by the United States Weather Bureau Fair tonight and Friday; no change in temperatures. Temperatures for Yesterday. Maximum g; Minimum . . i . .3 Today. Noon 82 Yeather Conditions The great area of high barometric pressure with attendant cool weather still controlls conditions over the north and central states. A hct wave prevails over the northwest, over the Rocky mountain states; 98 at Helena, Montana; 94 at Medicine Hat. Minimum temperature in Richmond last night was 56, being the coolest weather since the middle of June. The drought was very severe in a few portions of the country, especially near Louisville, Ky.

ILLINOIS GOVERNOR, INDICTED ON CHARGE OF EMBEZZLEMENT, WILL RESIST ARREST

(By Associated Press) ! SPRINGFIELD, 111., July 21 Governor Small, it was said today, will stand on the opinion of his counsel and refuse to submit to arrest, on warrants charging him with embezzlement, conspiracy, and : confidence game, as a result of yesterday's indictments of the governor, LieutenantGovernor Sterling, and Vernon Curtis, Grant Park, ill., banker. Opinions holding that the governor is immune from arrest were being drafted by bis legal staff to be presented to Circuit Judge Smith later in the day. . The indictments charge the three men with conspiring to defraud the state of $2,000,000, and the embezzlement of $500,000 and Lieutenant Governor Sterling is charged with the embezzlement of a, like amounts. . The bonds of Governor Small and Lieut. Governor Sterling were fixed at $150,000 each and those of Curtis at $100,000. Recommend Probe The grand jury which submitted a lengthy report recommended that the legislature conduct an investigation of the whole subject of the handling of public funds to determine the official delinquency if any and "to determine what legislation should be enacted to protect public funds. The jury found that during the terms of Governor Small and Lieutenant Governor Sterling as treasurer the daily balance in the state treasury fluctuated between $20,000,000 and $52,000,000, and beginning with Small's administration the balances were carried on the books as two funds, a vault and a safe fund, the former representing loans to legitimate banking institutions. Say Bank is Dead The report asserts the other fund represented loans made to the Grant Park bank, which, it says, ceased to function as a bank after 1908. Deposits carried by the Grant park bank, the report asserted, were used to purchase short term notes from Chicago packers, the total of which, the jury found, was $10,000,000. The loans to the packers earned, the Jury reported, nearly eight per cent, while Small and Sterling, according to the report paid over to the state less than two per cent, the re mainder constituting the bulk of the state's interest money, which the CREDITORS OF MILTON BANK WILL RECEIVE ADDITIONAL DIVIDEND Creditors of the Farmers' bank of Milton will receive a further dividend of five per cent, according to an order issued by Judge Bond in Wayne circuit court Thursday on the acceptance of a partial report of the receiver for the defunct Institution, Claude S. Kitterman, of Cambridge City. - Claims amounting to $287,946.89 for certificates, checking accounts and Christmas Savings accounts have been filed with the receiver, the " report states. Of this amount obligations for just and valid claims that have been allowed amount to $226,234.68. There is now $38,414.14 to be distributed among the creditors ' of the firm. Previous to this time $43,278.31 had been distributed. . This wa3 the 20 per cent dividend that was - dej clared by the receiver last November. MUDiuundi victim A report of additional claims filed with the receiver since the expiration of date for filing claims, and which are considered just and valid by the receiver and which he recommended the court to allow were allowed by Judge Bond. These were William H Robbins, $74; George - Borgerding, $10.15; Floyd Smith, $50; B. H. Dodd ridge, $32.10; Esther Hoshour, $6. The report states that Mr. Kitterman has collected and reduced to cash, notes and claims in favor of the bank with what cash was on hands in the bank at the time of his taking possession to the amount of $89,917.61.. During the time . of receivership $5,299.91 has been paid out on allowances by the court. To this was added $1,172.21 asked in the report Thursday.

Bombing ex-German destroyer G-102 off Virginia Capes and (below) Major General William J. Snow. Since witnessing the recent bombing off the Virginia Capes of the exGerman destroyer G-102, Maj. Gen. William J. Snow, chief of the U. S. field artillery, has declared his belief that the development of aviation in the future will be virtually unlimited and that big army bombing planes, carrying 2,000 and 4,000 pound bombs.

will become one of the principal fac tors, if not the chief factor, in the defenso of the American coasts. Such planes, protected by fast scouts and fighting aircraft, General Snow believes will introduce a new element into all off-coast operations within a range which may extend hundreds of miles out to sea. jury charges Small and Sterling with embezzling. Governor Small issued a statement in which he laid the entire blame for the indictments on his political enemies, and Lieutenant Governor Sterling in a statement declared he would welcome the opportunity to lay bare his record before the public. CAMP PIKE OFFICER CAUSE OF DELAY IN BERGDOLL HEARING (By Associated Press) WASHINGTON, July 21. House committee hearings in the Bergdoll case were defefred until tomorrow because Major Bruce R. Campbell, ordered here from Camp Pike, Ark., by the war department to answer charges of having accepted $5,000 to aid Grover Cleveland Bergdoll to escape, had not reached Washington at the hour fixed today for the committee's hearing. He left Camp Pike at 7:30 o'clock Tuesday evening. At a former hearing both Major Campbell and Mrs. Bergdoll testified that he was not paid one dollar in connection with his services as Bergdoll's military counsel in courtmartial proceedings, and from Camp Pike Tuesday the officer issued a denial of the charges. Mrs. Bergdoll, it developed, was urged by her son, now a fugitive in Germany, to tell the committee of the alleged payment which the mother swore was for use among "the higher-ups" in the government service. The committee got word of this after the hearing had been vir tually concluded. FLOATING BAR PROBE ORDERED BY HAYNES (By Associated Press) i WASHINGTON, July 21. Investigation of the reported operation of a floating bar off Long Island outside the three-mile limit was ordered today by Prohibition Commissioner Haynes. The commissioner said he was looking into reports that liquor cargoes were being transferred beyond the three-mile limit, but did not know whether such ' matters would come within bis jurisdiction. Captain Reid, chief of the New York division of the coast guards, who was in Washington today, said he had instructed coast guard stations on Long Island to investigate thoroughly the rumors of smuggling and to have cutters in readiness. STATE BOARD RAISES COUNTY TAX RATE (Bv Associated Press) INDIANAPOLIS, July 21 Two more Indiana counties were held today by the state tax - board to have fair assessments of personal property and as a result county boards of review in Montgomery and Gibson counties will not be called into session again'to modify any assessments. Increases, however, were ordered in Warren, Fountain, Posey and Hamilton counties, ranging from' 10 to 50 per cent on some classes of property. Baked Apples on Trees Result of Economy Fire ECONOMY, Ind., July 21. Spontaneous combustion is believed to have been the cause of a fire on the Byram Pierce farm. Tuesday evening, near here. A quantity of new hay had been stored in the building a short time before Efforts made by the Green's Fork fire department, to save the building proved fruitless. Trees in line with the blaze were scorched,, and baked apples were picked from some ot them.

TAKE ALL PRECAUTIONS

(By Associated Press) -PARIS, July 21. France, it was declared in official circles this morn ing, will send reinforcements to Upper Silesia whether Great Britain Joins or not in the reinforcement movement suggested by France. The French move will be made, it was declared, to insure the eafety of the : 10,00rt French soldiers already on the ground there. Premier Briand sent a note yesterday in reply to the British note on the Silesian issue, expressing lack of conviction that the supreme council could serve any useful purpose by convening before measures are taken to assure order and provide for the recurity of the allied troops now in upper Silesia, according to the inter pretation officials circles place upon the French communication. News received here today from Oppeln was far from reassuring. The attitude of the German press, as interpreted by the French dlspaches, was increasingly provocative. Recognize Danger. France, it is declared, recognizes that danger threatens from the side of the Poles as well as from the German side, making It doubly necessary, in the French view, to reinforce the allied troops. Precautions first, decisions afterward, probably will remain the French tactics, it is indicated, unless there are unforeseen developments. French official circles received a distinct shock from the British government's reply to the French suggestion that allied reinforcements be sent to upper Silesia, and in 6ome quarters today Anglo-French relations are described as critical as a result. The French government is said to have been unprepared for "the severity and unyielding tone" that this morning's newspapers indicate characterizes the British communication. Suggest Hastiness Editorial comment suggested that the British prime minister, David Lloyd George, acted entirely too hastily in refusing to agree with th French view that additional allied troops were necessary in upper Silesia. The commentors also declare that he failed to inform himself fully regarding the necessity of prompt allied action, and add that had he waited a few hours Jonger he would have had before him a unanimous report from the allied high commissioners at Oppeln in which it is urged that immediate reinforcements be sent. While most newspapers agree that the incident brings Anglo-French relations to another delicate point, Le Journal says the problem is not insoluble and in Its final anaylsis not of a nature to seriously trouble the comity of allied relations. See Awkward Situation - The Temps, commenting on the British desire for a meeting of the supreme council in the immediate future, offers the objection that the council will inevitably have to discuss the Upper Silesian question, and says: "The treaty of Versailles stipulates that the future frontier of Upper Silesia should be fixed by the principal allied and associated powers, thus including the United States. If the supreme council should be present as a participant, not spectator, the American government would be placed tn an awkward position. If, on the other hand, the matter were discussed by the ambassador's council, the United States could be consulted." ' COTTON DUTIES ARE REFUSED BY HOUSE IN DECISIVE VOTE (By Associated Press) WASHINGTON. July 21. Compensatory duties on textiles manufactured from long staple cotton were denied by the house today in line with Its action yesterday in refusing compensatory duties on leather products. The vote ot 122 to 50, represented a coalition of Republicans with Democrats, to defeat the proposition. A vote on the Fordney bill was scheduled for late in the day with passage regarded as assured in view of the heavy Republican majority, which thus far has supported the measure as a whole. There were prospects of a bitter last ditch fight, however, over some of the contestefl sections of the bill which will be voted on again before the final O. K. is placed on the bill. Whether hides and long staple cotton shall carry a tax and petroleum shall be free as previously voted in committee of tha whole, and whether the government shall employ a three year embargo against dye importations, were questions to be voted on finally. - . . Kill Shoe Tariff The house late yesterday killed a proposed tariff on shoes and other leather goods which would have offset the increase in the price of raw products occasioned by the duty on hides. No further action can be taken on that under the special rule, and the free hide advocates expect to reverse the action which put a tariff on hides. NOMINATES WOMAN JUDGE (By Associated Press) . WASHINGTON, July 21 President Harding today nominated a woman to be a Judge of the municipal court, D. of C. She is Mary O'Toole, a practicing lawyer here.