Richmond Palladium (Daily), Volume 92, Number 123, 24 May 1922 — Page 1

E RICHMOND P

VOL. XCII., No. 123 -,- Palladium. Est 1S31. Consolidated With Sun-Telegram. 1J07. RICHMOND, IND., WEDNESDAY EVENING, MAY 24, 1922. SINGLE COPY, 3 CENTS

0

4

ORDER FREIGHT RATE CUT AVERAGING 10 PER CENT TO BE EFFECTIVE JULY

Reduction Ordered Today by Interstate Commerce Commission in Decision Decreases Are on Horizontal Basis and Constitute Greater Cut than Was Expected Will Be Effective July 1 Hold Roads Entitled to Earn Per Cent on Their Property Rather than Approximately Six Per Cent Fixed as Reasonable Return in Transportation Act of 1920 Agricultural Products Not Affected as Former Slashes Cover Those Commodities. PASSENGER, PULlMAlTCHAflGES UNAFFECTED (Ey Associated Press) WASHINGTON, May 24 Reduction in freight rates averaging about 10 per cent were ordered today by the inter-state commerce commission, in a decision resulting from its inquiry in the general rate structure of the nation. The cut in freight rates was fixed by the commission at 14

per cent in easterarritory ; 13 and one-half per cent in western territory and 12 and one-harf per cent in the southern and mountain Pacific territories. All reductions ordered are effective July 1, and constitute a greater cut than was generally expected.

The commission in ordering the decreases which are on a horizontal basis held that the nations railroads are entitled to earn five and threequarters percent on the value of their property rather than the approximate Fix percent fixed as a reasonable return under the transportation act of 1920. Other Rates Unchanged. Transportation charges on passenger travel and Pullman charges were left unaffected by the decision. Agricultural products will not be affected by the reduction granted under the commission's order today. The reduction of 16 percent made in the western hay and grain rates last fall and the voluntary 10 percent cut made in all agricultural products by railroads Jan. 1 will be substituted for the decision on these commodities. The commission In its decision declared a general reduction in rate levels as substantial as the condition of the carrier will permit will tend to stabilize conditions of all business. Transportation charges have mounted to the point where they are im peeing the free flow of commerce, the commission's decision which ordered a far greater reduction of rates than had been anticipated in any quarter, said, and are thus tend ing the defeat of the purpose for which thev were establishd, that of producing revenue which would enable the carriers to provide the peo nle of the United States with ade quate transportation. Averages 10 Per Cent Onlv two members of the board com missloners Lewis end Cox disente'd holding that the adjustments should have been made In commodity rates rather than on a horizontal basis, Chairman McChord and other com missioners accepted this view in a supplemental opinion concurring with the majority. In western territory the commission ordered a cut of approximately 13 per cent, and in the southern and mountain Pacific groups approximately 13 1-10 per cent. All effective July 1. The commission's rate cut was more horizontaally and a percentage of the general increases given to all railroad rates in 1920. Commission's Order The order of the commission fixing the new level of rates defined the percentages of reduction as follows: In the eastern group, also between points in Illinois territory and between Illinois territory and the eastern group. 26 per cent Instead of the 40 per cent authorized in the decisions last cited (the rate increases of 1920). In the western group and between the western group and Illinois territory, 21 5-10 per cent instead of 35 per cent so authorized. In the southern and mountain Pacific groups. 12 5-10 per cent instead of 25 per cent so authorized. On inter-territorial traffic except as otherwise provided, 20 . per cent instead of 33 1-3 per cent so authorized. Separate Opinion Commissioner Potter in a separate opinion concurring with the majority declared that the fixing of "the per centages mentioned, is in effect a reauirement that present rates . and chnrees shall, generally sneaking, be reduced ten per cent certain reductions heretofore made to be treated as part of such ten percent reduction." The majority opinion revised the recent history of rate regulations and set forth summaries of arguments made by shippers in favor of reductions and carriers against reduction?.! It expressed the conclusion that "assumption that railroad rates can or should be stabilized on the present high basis Is futile." The majority further said that "until the public Is convinced that there is little likelihood of immediate further materal reductions in prices or transportation charges, confidence necessary- to normal business will to that extent be Impaired." Explaining the reason for adopting a horlzonal method of reducing freight rates, the commission said that white alterations in price levels had unequa'ly affected different commodities, "the needs of commerce cannot be met it rates are to fluctuate with market prices of commodities." Its conclusion was that "reduction should be made generally upon all commodities in substantially equal ratio." In the matter of reasonable return the commission pointed out that until March 1. 1922, railroads had been legally entitled to six percent annual earnings on the aggregate value of Tironerty used in transportation. The

sum was fixed by the transportation

1

act as the amount equal to five and one-half percent with one-half of one percent additional to be granted in the discretion of the commission for provision for improvements and bet terments to railroads. Fair Return Standard. The commission exercised this discretion and the reasonable return consequently has generally been knewn as "the six percent return." The commission, in modifying the fair return standard, reviewed testimony taken by it in the general rate case and concluded that "a substantial reduction in the percentage of return might be unsettling in Its effect, particularly in light of the fact that the return allowed in 1920 was not realized." "We may observe that a fair return of 5.75 per cent," the commission said in further explanation. " after deducting the federal corporation income tax on a return of 6 per cent, would be approximately the equivalent of a fair return of 6 per cent, out of which the federal income tax was payable. In this connection, the commission concluded that in Its 1820 estimates of the aggregate value of railroad property In the country, which was 818,900.000,000, as made for rate-making purposes, could still be accepted. Says .Cuts Fall Short. The changes in valuation made since would be immaterial in calculating earnings. Chairman McChord, in his dissenting opinion, objected to the rate of return allowed, and expressed the opinion that it should not exceed 5.5 per cent, and that in any case the commission should not set a value at the present time. "In my judgment the general reductions now decreed fall short of full attainment of the desired end," he ad ded. "The present level of rates on basic articles should be materially re duced." Commissioner Eastman said the de cision should have been withheld to await action by the railroad labor board on pending applications for the reduction of wage scales. Commissioner Lewis, though dissenting, remarked that "the decision of the commission that rates be reduced is unanimous." Commissioner Potter 6aid that "during the early stages of our delibera tions" it was his opinion that "socalled basic commodities" Bhould have preferential reductions but that he had now developed by further consideration objections to such a course. INDIANAPOLIS, May 24. The reduction in freight rates ordered by the interstate commerce commission will not affect the freight rate cases instituted before the commission by the Indiana State Chamber of Commerce, because these cases ask for readjustments in rates as well as reductions, said R. B. Coapstick, manager of the Traffic department, today. FIVE KILLED BY GAS AND ELECTRICITY IN DEEP SEWER SHAFT (By Associated Press) MILWAUKEE, May 24 Three city firemen and two tunnel workers were killed by gas and electricity at the bottom of a 52-foot shaft of a sewer system this morning and nearly a score of firemen were overcome. The firemen were trying to rescue the two tunnel workers. DYNAMITING CLOSES EIGHT COAL MINES (By Associated Press) CHARLESTON, W. VA., May 24 An electric transmission line power of the Virginia Power company was dynamited today early near Alberton, Fayette county, closing eight mines as a result, according to James C. Smith, commercial manager of the power company! BANDIT IS KILLED; PAYROLL RECOVERED BRIDGEPORT, Conn., May 24. One bandit was killed, another injured, and the 12,000 carmen's payroll of . the Connecticut company was recovered after a holdup by four men and a pistol fight with the police today. Tht other bandits were captured.

FIVE STEEL HEADS TELL DAU6HERTY OF STEEL MERGER PLAN

(By Associated Press) WASHINGTON, May 24. Representatives of five of the independent steel companies considering a merger were understood to have informed Attorney General Daugherty at a conference here today that the projected consolidation "would not be consummated until the department of Justice had been fully advised. When the conference was arranged last week, the attorney general said he had been informed by an official of one of the companies that there was never any intention of bringing about the merger before consultation with the department. Unconfirmed reports from New York last night, how ever, said the merger already had become' effective as to three of the companies the Midvale Steel and Ordnance company, the Inland Steel company and the Republic Iron and Steel company and that three others would be added to the group within the next day or two. It was said the originally planned seven-company amalgamation had been reduced to the six-company combine. NEW INDICTMENTS RETURNED AGAINST LABOR "BIG THREE" (By Associated Press) CHICAGO, May 24. Authority for the employment of 1,000 additional policemen was voted today at the request of Chief of Police Fitzmorris. CHICAGO, May 24. New Indictments charging "Big Tim" Murphy, Tom Shea and Fred Mader and five others with murder in connection with what the police term a labor war, were returned today by the county grand jury. The indictments were returned to overcome technical errors believed to exist in the first ones, which were voted hurriedly so that the men could be held. The others named in the indictment were John Miller, alleged driver of the car from which a policeman was shot; Margaret Hommell, also named as Mrs. John Miller, Charles Duschki a m i it , ,, , I swbhj, ana ianiey cyiioK, anegea labor bomber, and Daniel McCarty, business agent of the plumbers' union. The murder indictments charge the men with murdering Police Lieutenant Terrence Lyons, who was shot to death while investigating alleged labor bombings. DECLARES DAUGHERTY HAD SECRET SERVICE WATCH CONGRESSMEN (By Associated Press) WASHINGTON, May 24. Attorney General Daugherty was charged by Senator Caraway, Democrat, Ark., speaking today in the senate, to have assigned secret service operatives to shadow members of congress. TOhe Arkansas senator declared Mr. Daugherty never had denied the charge recently made by H. L. Scaife, discharged department of justice employe, that secret service men, including a negro coachman, had been asrigned to follow members of the house. The senator added the statement that he knew of a witness, who would testify that "secret service men are trailing members of the senate, as well as spying on members of. the house." Another statement, made by Senator Caraway, was that the attorney geh eral and C. B. Felder, New York attorney, "suggested" that Charles W. (Continued on Page Fourteen) LOCAL BUSINESS MEN SEE BETTER TRADE AS RESULT OF CUT Reduction of freight rates as ordered by the interstate commerce commission means a general stimulation of virtually every line of business in the city, in the opinion of leading manufacturers interviewed Wednesday. Manufacturers of automobile bodies, farm implements and other products joined In the statement that the reduction could mean but one thing, increased trade. "That's fine!" said E. H. Cureton of the Richmond works, International Harvester company, when told of the change in rates. "This reduction will affect us Indirectly, as it will enable the farmers to buy implements that they could not afford to take before. The farmer is tne only individual who has to pay the freight both ways, once on the farm products and once on the stuff he buys. Mr. Cureton said that It would take some time for. the reduction to show any marked effect among the farming trade but he expected that by the end of summer, business would be near normal. H. R. Robinson, of the Swayne-Rob-inson company, said the new rate would be ol greatest benefit to that plant because of the hay baler trade. "In nrtrtitirtn in the direct benefit to business," said Mr. Robinson, "there! Is a psychological effect. We have all been looking for this reduction, and now that it is here, there will be increased confidence in business in general." M. D. Shugart, of the Wayne Works, said the general effect would be to put Richmond on the map, giving the customers in the south and west better opportunity to trade. "The rates should have been lowered long ago," he said. "It means a reduction in the cost of everything with an increased trade as the result."

Britain's Queen an3 King Honor Edith Cavell, Martyred English Nurse

ft .sjft if Jr' - i i - C3' IS (71

The kine and aueen of England, Haig, played an important part In an

ory of Edith Cavell, English nurse, shot by the Germans as a spy during the war. They placed a large wreath of lilies and palms, with a ribbon composed of Belgian, British and French colors at the foot of the memorial. The picture shows the king and queen standing near the spot where the heroic nurse and 34 other persons were shot by the Germans. '

FEDERAL EMPLOYES' UNIONS MAY FIGHT MOVE TO LENGTHEN DAY TO EIGHT HOURS

PALLADICM JfEWS BUREAU WASHINGTON, May 24. An eighthour work day for government employes in Washington is being considered by the administration as another move in the direction of putting more business into government Such action, it is believed, will not be accomplished without a determined effort to defeat it on the part of various federal employes' unions. At present the maximum day. for government employe in Washinginn ia Ctvon i ti nnAtial Krtiii"c In ton is seven and one-half hours. In practice, however, the majority of the departments and bureaus In Washington only observe a seven-hour day. The seven and one-half hour work day for government workers in Washington is fixed by law and by the regulations of the civil seice commission. Government employes in Washington also have Saturday afternoons off for 13 weeks during the summer. This gives them a working schedule. of 45 hours a week during . the winter months and 41 hours a week during the summer month3. In addition, government employes are entitled to 30 days' vacation on full pay annually. They also are given a minimum of l. days and a maximum of 30 iays sick leave on full pay annually. The difference is optional with the heads of bureaus. It is a custom for GEN. WOOD IS SAFE; TOOK REFUGE FROM TYPHOON ON ISLAND (By Associated Press.) MANILA, May 24. Leonard Wood, governor general of the Philippines, is safe after being missing 36 hours on the yacht Apo, following a typhoon, according to word received here early today. The yacht was reported to have taken refuge on an island near Mindora, where the governor accompanied by his wife and daughter, had gone Saturday on an inspection trip. Since the typhoon keen anxiety has been felt for the safety of General Wood and his family. The Apo is a small yacht and vessels generally in the vicinity of . Mindoro were driven helpless before the storm. For two days efforts to reach the Apo were unavailing. BAKER TO SPEAK (By Associated Press) YOUNGSTOWN, Ohio, May 24. Newton D. Baker, former secretary of war. will speak at Memorial Day exercises here. .' Weather Forecast FOR RICHMOND AND VICINITY By W. E. Moore. Partly cloudy occasional showers and thunderstorms tonight and Thursday. The storm center is over the Mississippi valley states, and will cause continue unsettled weather for the next 36 hours, with occasional rains and thunderstorms. Temperatures Yesterday. Maximum 81 Minimum 59 Today. Noon 83 Weather Conditions Fair weather prevails over the eastern states. Unsettled showery weather extends from Ohio westward to Kansas. Heavy rainfall is over the lower Ohio valley, and portions over the Missouri valley. Fair weather prevails over the-western states. It has been quite cool over western Canada. At Calgary, Alberta, Tuesday it was 28 above zero, but was getting warmer again in that section today. Another storm is developing over the southern Rocky mountain states. Temperatures in far south are ranging from 100 to 104. For Indiana By United States Weather bureau. Unsettled weather tonight and Thursday, probably showers not much change in temperature. Paid Circulation Yesterday, was 11,842

accompanied by Earl Beatty. first lord

impressive ceremony at the memorial all federal workers who have not used up their sick leave by actual sickness to add it to their vacation period so that at a minimum government employes in Washington have 45 days away from the office on full pay in addition to their 13 Saturday half-holidays during the summer. The distinction is sharply drawn between government employes in Wash- ( Continued on Page Three) BRITISH AVIATORS HOP OFF IN FLIGHT AROUND THE WORLD (By Associated Press) COR YDON, England, May 24. Major W. T. . Blake and two compan ions started from the airdome here at 3:05 o'clock this afternoon on an attempted 30,000 miles aeroplane flight around the world. - CORYDON, England, May 24. The Corydon aerodrome which is London's terminal for journeys by air to Paris and other continental points was packed today with sightseers eager to witness the departure of Major WVT. Blake and his companions on their attempted 30,000 mile flight around the world. ' Major Blake't sociates in the adventure are Captain Norman MacMillan and Lieut. Col. L. E. Broome. Brilliant sunshine with a light breeze, made the weather conditions perfect for the take-off. An official tone was given to the event by the presence of Major General Sir William Brancker, director of civil aviation. The machine the aviators are using is 1 HS, capable of making 110 miles an ,ur. It has the very latest equipment for comfort and a special attention has been paid to the petrol systems. A1 thorough test has been given the machine and it was taken up again today by Pilot MacMillan for the final spin prior to the great flight which is expected to last 90 days. The start was scheduled for 1 o'clock, the first stop being at Paris. Tomorrow the aviators expect to reach Lyons, France, and thence will fly to Rome and by stages through India, China, Japan, Alaska and the United States, crossing the Atlantic from New Foundland via Greenland and Iceland. BOYS' SUMMER CAMP GROUNDS PURCHASED BY KIWANIS-ROTARY Twenty-seven acres of ideal sum mer camp ground, together witn a seven room cottage, barn and care- i taker's building, along one of thej most beautiful portions of the WTnite-! water river, has been purchased by the Kiwani3 and Rotary clubs of the city, according to Denver Harlan, chairman of a joint committee appointed for the purpose. The ground purchased is a part of the Elizabeth Cory tract, along the east fork of the Whitewater river, three-fourths of a mile north of Fairfield. It is estimated that the distance from Richmond is 25 miles. Title to the land is to be received by the clubs within the next 10 days to two weeks, it is stated. The en tire purchase price of the site is being defrayed by the clubs named. Boys of the city over 10 years of age will be given an outing at this camp, 50 boys at, a. time, under tho supervision of Perry Vilson, boys secretary of the . M. C. A.! Many natural advantages most needed for a boys' summer camp is to be found on the tract bought, Mr. Harlan said including good spring water. ITALY AND RUSSIA SIGN TRADE PACT (By Associated Press) GENOA, May 24. A commercial treaty between Soviet Russia and Italy was signed in the royal palace

this afternoon. ; il

of the British admiralty, and Earl

In Brussels, Belgium, erected in memMASONIC DELEGATES VISIT STATE HOME AT FRANKLIN WEDNESDAY BULLETIN INDIANAOLIS, Ind.. May 24. Dr. Joseph J. Rae, pastor of the First Presbyterian church at Richmond, Wednesday was appointed grand chaplain of the Indiana grand lodge of Free and Accepted Masons by Robert W. Phillips, newly elected grand master. (Special to The Palladium) INDIANAPOLIS, Ind., May 25. Delegates to the 105th annual session of the grand lodge of Indiana Free i and Accepted Masons, Wednesday morning visited the Indiana Masonic Home at Franklin. The boys' band from the home was to furnish music for the delegates. . The following officers of the grand lodge were elected shortly after 2 o'clock Tuesday afternoon: Robert W. Phillips. Richmond.. . grand master ; Charles A. Lippincott, South Bend, deputy grand master; Lee Dinwiddle, Fowler, senior grand warden; Albert W. Funkhouser. Evansville, Junior grand warden; Frank E. Gavin, Indianapolis, grand treasurer; W. H. Swintz, Indianapolis, grand secretary. James W. Dunbar, of New Albany, was elected grand trustee for a three year term. Committee reports, and election of officers occupied most of Tuesday afternoon. Reports also were read by the secretary, treasurer and the trustees. Delegates attended a banquet at 6 o'clock Tuesday evening. Governor Warren T. McCray was the principal speaker. Omer B. Smith, of Rochester, retiring grand master, presided. More than 1,000 delegates representing nearly all of the 600 subordinate lodges in the state, are in attendance. More than 114,000 members are affiliated with the grand lodge of Indiana. MAN, WOMAN RIVALS IN MINNESOTA FOR SEAT IN U. S. SENATE By MARK SflUVAS WASHINGTON, D. C. May 24. The fact that the women voters were the largest - single factor in the success of Gifford Pinchot In Pennsylvania an 1 the fact that this was the most con spicuous demonstration . the . country has so far had of organized activity on the part of the women along lines distinct from those followed by the men voters euggest that a good deal of public interest attaches to a situation developing in Minnesota. In that state there Is likely to be seen this summer the spectacle of a clean fight for the United States senatorship between a man and a woman. Unless the table Is reset In Minne sota by some event not now foreseen, the Republican candidate for the United States senate will be the present senator, Frank B. Kellogg, and his Democratic opponent will be Mrs. Peter B. Olesen." The spectacle of a"" veteran public man running for the senate, with the opposition represented by a -woman with a regular party nomination, will be unprecedented in American politics. Mr. Kellogg, aside from being senator, is one of the best known lawyers in America. ; He-has been president of the American Bar association and he was counsel for the United States government in the suits against the Union Pacific railroad and against the Stand ard Oil company. Mrs. Olesen is the wife of the city superintendent of schools in the little Minnesota town of Cloquet. Mrs. Oleson first became conspisuous in her borne community as a speaker at meet ings of women s clubs and the. like, Later she became a Chautauqua lecturer and entered active politics as one of the Minnesota delegates to the Democratic nationAl convention to San' Francisco two years ago. She Is described as the greatest woman ora tor in the west. - - This is the Minnesota . senatorship fight as it is now staged. There is a possibility, but not a liklihood, of its being changed. 1 The Republican state convention has nominated Mr. Kellogg and the Demo cratic state convention has nominated Mrs. Oleson. ' The Minnesota primary

REPUBLICANS PRAISE WORK

ACCOMPLISHED Senator Watson Lauds Execu- . tive, Legislative and Diplo- ' matic Record McCray, Discusses State Issues. ;- BEVERIDGE SEES DUTY (By Associated Press) INDIANAPOLIS, May 24. Efficient and wise management of the nation's affairs, both domestic and international, and substantial results In relieving "the evils of eight years of Democratic misrule," were claimed for the Harding administration in an address here today by Senator Watson, Republican, Indiana, before the Indiana Republican state convention. For years It has been the custom of Indiana Republicans to have the keynote of the national campaigns pounded before them and Senator Watson's speech, which was discussed in advance with President Hardin? win be incorporated in the party literature fpr the congressional campaign this tan. Gov. Warren T. McCray discussed state Issues, calling attention to "forward looking legislation" enacted by the last general assembly and also presented a defense of the borrowing f of funds for the conduct of state business. ... Beverldge Speaks Albert J. Beverldge, the 'party's nominee . for United States senator, was yet another speaker. .He praised the Harding administration, declaring that "America is to be congratulated on an official record so splendid." Mr. Beveridge also complimented the administration of Governor McCray, saying that the governor's "superb conduct of his great office has so strengthened our party in the confidence of the people." The addresses of the leaders comprised the program of today's session of the convention. Nominations fcr ten state offices will not come before 1 the convention until tomorrow and the adoption of a platform will also be left for the second day. Senator Watson praised the executive, legislative and diplomatic record of the present administration and flayed the recent Democratic administration as "debt-incurring, deficit-creating, bond-issuing, surplus scatterinc;. factory-closing, industry paralyzing, prosperity-destroying, social upheaving and cataclysm-producing. "We are not responsible for all this waste," he declared. "We did not produce all this wreckage. We did not. incur these debts. We have not piled up this mountain of obligations and those gentlemen who are responsible for all this riotious orgy of extravagance and all this upsetting of indu-v try and unsettling of financial conditions, now stand and jeer at us because In 14 months we have not overcome all the evil they produced in eight years." Long Strides Taken "We have not yet accomplished a'l that we have set out to do," he continued. "We have not cured all thi ills and corrected all the mistakes and over come all the evils of eight years of Democratic misrule but certainlv we have taken long strides In the right direction and assuredly if the Republican party cannot adjust matters, what hope is there in turning to the organization that caused all the disaster in the beginning?" Reduction of taxes and appropriations, reorganization of the shipping board, agricultural relief, the tariff bill and diplomacy of the present administration were emphasized by Senator Watson. ; - "This administration does not need an apologist," said Senator Watson "No administration ever before came Into power confronting ruch problems of such complexity and difficulty as those which were Inherited by President Harding and the Republican congress." Praises Conference. - President Harding's call for the arms conference, he declared, was "the largest step toward international peace with Justice the world has ever known in all its history," The Four Power treaty, the senator said, brought understanding and assurances of. peace. Declination of the invitailon to the Genoa conference also was commended by Mr. Watson, who said it was a political and not an economic conference. The world by this time ought to understand," he continued, "that we do not intend to become involved In their political wrangles and that we are willing to lend aid or give counsel and maintain always a sympathetic attitude, yet we will refuse to be dragged into their financial difficulties and we always will decline to meddle with their national affairs or to become Involved in their age old rivalries. ' We do not intend to get into this confused jumble of European animos ities. This attitude of the administration meets with the hearty approval of everybody except the international ists of a most extreme type." ; . Domestic Affairs. In domestic affairs. Senator Watson said the Harding administration stood for "full freedom in business and a recognition of the larger rights of the individual to control and operate his own business affairs." I . "The 'new freedom preached by Woodrow Wilson was a grotesque travesty on the very name, he added, "while the enfranchisement of business under Harding is an accomplished fact." . "Notwithstanding the near approach to collapse of the monetary system of nearly every country in Europe," he continued, "we have balanced our budget, we are living within our income, we have issued no bonds and sold no treasury certificates; he have paid off $1,000,000,000 of the public debt, we have reduced taxation by $825,000,000 the first year and $525,000,000 more the

(Continued on Page. Nine)

(Continued on Page Nine)