MONDAY. JULY 8. 1913. FLATTSMOUTU SEMI-WEEKLY JOURNAL. PAGE FTTE. GERMAN SPY SYSTEM HERE IS SUSPECTED HAN ARRESTED THOUGHT OWN ER OF NUMBER OF LETTERS WRITTEN IN CODE. Are th. Profiteers? Broken Bottle of Whisky in Trunk in Transit Leads to His Arrest. Packe Omaha, July C. The arre-:t yes terday afternoon of Herbert Winters formerly a waiter at the ForUnelle hotd. may lead, police and federal oncers say, to the uncovering of a (Ionian spy system with headquait t rs in Omaha. Winters arrest followed th': &ciz ';r by police Thursday of a trunk :.t the union station, in whuh an memy alien registration card bear i;ig Winter's name and a large num Kt of letters, believed to be writ ten in cole, were found. The baggaemaster at the union station reported to police that whiskv was leaking from a trunk. The trunk was taken to the police station and opened. It had con tained three quarts of whisky, two of which had been broken. In an effort to learn the identity o f the owner, police looked through letters and papers in the trunk. H'hen thoy found the enemy alien registra tion card, federal authorities were lior.fied. as travel by enemy al'ens is restricted. A careful examination of all pa pers in the trunk followed, ani offi cials heearr.e suspicious when they fotii.d frequent references to bui-p-ss tin-is, which, it is said, do not ist and b cau?e numbers referring t. certain articles were impritical. An orr.c-rr said: "One letter re ii rred to 4 .. of a Trtain article :-.t or.e place and SJ.OOO of the same ;-rt:c!e at anotlnr place, while it is r.ot likely that 10.000 of that article xis' in the United States.' If is be lieve I the number may have refer red lo arn'y units. Winter?, who was out of town when the trunk was seized, was ar r.sed promptly on his return yv-t-rc'ay. Manactr Gregory of the Funtenelle Iiottl said the man work ed there only one day. Winters' Oin3ha headquarters have been locat ed and other arrests may follow soon. WILL STAY AT FRE1I0NT FOR TWO MONTHS I"i..vi Sit ; r. lays Daily, This afternoon. Mrs. Haz B Sn.ith. with the children of the Eas-t-n Star Orphanage departed n t'ne afternoon train for F.vmont. where tho will stay fnr some two months duriir-r the summer. .Mrs. Smith is very p'.p-ihir with the children and has made an exceptional succecs with Thrm i! t'd the home, and it is looked uyju as a p;cnic ior mem xo sn i i'rtmont, for the two months Ftay. i S. VISITED IN THE CITY. V S,i!';ii!:iy's Pai!y. t-. t'. II. Holing of Macedonia, V of Mrs. J. II. Carter of this ho ha.- been visiting i. th's the pa.-t few days, w'ih her returned to her Iowa V-rdav. Mrs. Uoling's hus- Vg died some time since, was spending the holi- r daughter and 'imily. f Council BluG's, Iowa, iend of the fap'ily of .Mr. Cartel V spent the Fourth ': t'l -ia deparU'l yesterday morning for iiis home. n el. . d;il! iloTllt band th- nt d;v wit T. I.. Ki :. n obi til IN FRANCE itfOW 1'roni S:i In May's )ai!y. Mr. and Mrs. A. S Will of this city received a card from their son Iti.'bert. this inorninir, stating he had arrived "Somewhere in Fraucc" i safety. This will be most pleas ing u'-ws. both to his parents and to Iiis many friends in this ci and vicinity. Kcbert has been stationed at Camp Pike, near Little Kock, Ar . during the past few mor.'hs. CARD OF THANKS. W'f wis', to extend our .-incere iha!ik to thc-e of our friend? who w-rt i.'i kind in the tr.iiiistraiicns at the time of the death of our belov ed i: ;n, arid who contributed service and Ikral o.Terings. JiK. AND M IIS. IICNUY 1'KKRV. John MaurcT, and wife and daugh ter, Mi.-s Lottie departed this rnorn w.u for Fr :.. w Iter "Hfcey go to irfnd. some time visit I. Lome of the daughter o. Mrs. Maurer, Mrs. O. E. ' i 'husband who are now living place. Louis Kh'inacie. was a vi?: tL.s city? from his home this ai nooa. Plain Facts About the Meat Business The Federal Trade Commission in its recent report on war profits, stated that the five large meat packers have been profiteering and that they have a monopoly of the market. These conclusions, if fair and just, are matters of serious concern not only to those engaged in the meat packing business but to every other citizen of our country. The figures given on profits are misleading and the state ment that the packers have a monopoly is unsupported by the facts. The packers mentioned in the report stand ready to prove their profits reasonable and necessary. The meat business is one of the" largest American indus tries. Any citizen who would familiarize himself with its details must be prepared for large totals. The report states that the aggregate profits of four large packers were $140,000,000 for the three war years. This sum is compared with $19,0C0,000 as the average annual profit for the three years before the war, making it appear that the war profit was $121,000,000 greater than the pre-war profit. This compares a three-year profit with a one-year profit a manifestly unfair method of comparison. It is not only misleading, but the Federal Trade Commission apparent ly has made a mistake in the figures themselves. The ate three-year profit of $140,000,000 was earr sales of over four and a half billion dollars. It n S about three cents on each dollar of sales or a yik fraction of a cent per pound of product. Packers profits are a negligible factor in prices of live stock and meats. No other large business is conducted upon such small margins of profit. Vc iv w Furthermore and this is very important only a small portion of this profit has been paid in dividends. The balance has been put back into the business. It had to be, as you realize when you consider the problems the packers have had to solve and solve quickly during these war years. To conduct this business in war times, with higher costs and the necessity of paying two or three times the former prices for live stock, has required the use of two or three times the ordinary amount of working capital. The ad ditional profit makes only a fair return on this, and as has been stated, the larger portion of the profits earned has been used to finance huge stocks of goods and to provide additions and improvements made necessary by the enor mous demands of our army and navy and the Allies. If you are a business man you will appreciate the signifi cance of these facts, If you are unacquainted with busi ness, talk this matter over with some business acquain tance with your banker, say and ask him to compare profits of the packing industry with those of any other large industry at the present time. ir 7C 4C- No evidence is offered by the Federal Trade Commission in support of the statement that the large packers have a monopoly. The Commission's own report shows the large number and importance of other packers. The packers mentioned in the statement stand ready to prove to any fair minded person that they are in keen competition with each other, and that they have no power to manipulate prices. If this were not true they would not dare to make this positive statement. Furthermore, government figures show that the five large packers mentioned in the report account for only about one-third of the meat business of the country. They wish it were possible to interest you in the details of their business. Of how, for instance, they can sell dressed beef for less than the cost of the live animal, owing to the utilization of by-products, and of the wonderful story of the methods of distribution throughout this broad land, as well as in other countries. The five packers mentioned feel justified In co-operating with each other to the extent of together presenting this public statement. They have been able to do a big job for your government in its time of need; they have met all war time demands promptly and completely and they are willing to trust their case to the fairmindedness of the American people with the facts before them. Armour and Company Cudahy Packing Co. Morris & Company Swift & Company Wilson & Company TROOP SHIP SINKS m SUBMARINES Tliree U-Boats Destroyed in Euro pean Waters by Transports and Two by Destroyers of Convoy. at the . and and "that An Atlantic Port. July 4. De struction in European waters of five German submarines by British trans ports and y American and British destroyers, convoying them, was de scribed by passengers who arrived here today on an English liner. The transports, one of which was carry ing 7,000 American soldiers to Europe, accounted for three of the U boats and the destroyers sank the other two, according to the voyagers. Officers of the liner confirmed their stories. The passengers witnessed the tor pedoing of the 5,436-ton British freighter Orissa, which was part of their convoy, when the fleet was approximately a day out, steaming west from the British Isles. The Orissa bound in ballast for the United States, was sent to the bottom by an unseen submarine. A moment later, however, an American de stroyer, in the protecting fleet de tected the undersea boat below the surface and dropped a depth bomb, making a direct hit. The same eve ning a. U-boat was sighted by the passenger vessel, whose gunners sank it by shell fire. The ether three submarines were destroyed on the eastward trip of another covoy. They said a British transport, with 7,000 American troops aboard rammed a submarine which was revealed with two others in the sudden lifting of a heavy fog. Al most simultaneously with the dis appearance of the first submarine beneath the transport's bow, the ship's gunners accounted for another while a British destroyer disposed of the third. .1. E. Scott of Pacific Junction was a visitor in this city this morning coming over to look aficr some business. RiSK FDGH TO AH OFFENSIVE. ALLIED GENERALISSraO ABLE TO CHANGE HIS TACTICS. The American Aid Is Now Serving To Keverse Condi , tions. Washington. July 5. Increasing man-power and rapidly extending control of the air have permit..jJ the adoption of a new policy by General Foch, in the opinion of observers here. They believe the sequence of harJ local blows struck recently by allied troops shows a new ph.se is developing which might expand into a niajor operation. Reports r.f the recent successful strokes are taken to indicate General Foch no longer feels the necessity of keeping on the defensive to conserve his forces. The fact, that the Germans have been completely surprised is believed to be due to the work of the airmen. American aid has served to change the tide of the fighting. The Amer ican attacks around Chateau Thierry, the French operations at Soissona and the British operations on the Son me and in Flanders probably wer-i prompted by the weakness of the enemy at those points. RURAL CARRIER EXAMINATION. The United States Civil Service Commission has announced an exam ination for the County of Cas.s. Nebr., to be held at Wabash on July 23, 1918, to fill the position of rural car rier at Avoca and Wabash and va cancies that may later occur on rural routes from other postolhees in the above-mentioned county. The examination will be open only to male citizens who are actually domi ciled in the territory of a post office in the county and who meet the oth er requirements set forth in Form No. 1977. This form and applica tion blanks may be obtained from the offices mentioned above or from the United States Civil Service Com mission at Washington, D. C. Ap plications should be forwarded to the Commission at Washington at the earliest practicable date. During the continuance of the present war the Commisaion will, in accordance with the request of the Post Office Department, admit wonirn to rural carrier examinations upon the same conditions as men. By direction of the Commission: JOHN A. McILHENNY. President. Mrs. Herman Dostad of Omaha, who has been visiting In the city for the past few days departed this morning for her home after having visited at the home of her grand mother, Mrs. U. E. Monroe, and was accompanied home by Mrs. Monroe, who will visit there for a while. C. N. Gillespie was a visitor this morning to Lincolu, where he is looking after some business. Mrs. Q. K. Parmele returned this morning from a visit extending over three or four days with Mr. Parmele's mother, Mrs. E. K. Parmele at Ash land, and with other friends there. Journal Want-Ads fay I J. E. Brady and wife and Mrs. J. M. Leyda were visiting in the city of Omaha this afternoon spending a few hours there with friends. George Kroehler sr., who has beea visiting in Omaha with bis son John over the Fourth returned homo this morning. Miss Nettie Jirosek w ho makes her home in Omaha, where ehc is em ployed was a visitor in tlis city, coming to spend Sunday at the home of her parents. Miss Louise Short departed this morning for Omaha, where she will visit with friends for a short tine. George Pick departed this after noon for Gibson, where he will go to work with the Burlington on tho section. J. E. Wheeler and wife of Paw n City, arrived in the city this morning coming to visit with relatives fouth of the city and at Murray. Fred HawkBworth of Omaha, was In the city over night looking after some business and visiting with his mother Mrs. D. Hawksworth Mrs. H. K. Zavgren of Ooiaha. arrived in the city this morning and is visiting at the home of her moth er, Mrs. Mary Heinrlch for a short time. i