/ « •
The Omaha Morning ~;ee
' .... o A mriDn A V ADPIT r* i noo * By”Mall (I year) •• Dally and Sunday. 85; Sunday. $2.58. within the 4th rone. TWO CUNTS ln °(™*«h*c*nta CtlKwh«ia
ar/-yt rn vn oro Intend ai Sacdnd-Claia• Matter May 28, ISM, »t OMAHA. SATURDAY, APRIL I, Outalda the 4th »one tl yaar): Dally and Sunday. 112: Sunday duly. Si _
VOL. OZ INU. aiOai. Omaha P. O. Under Act of Maroh 3. 1878. w , a. , _’________- — —-- ■—*
___ _ ■■■"— " ■ . ia.1—— B — ■ ui i i ■ A
New Ruhr
Note Full of
Dynamite
German Protest Against Kill
ings at Krupp Plant Snlacks
of Ultimatum—Next Move
Up to France.
U. S. Officials Are Silent
» -
By Vnirorsal Swvlce.
Washington, April 6.—Eventuali
ties which will havo an important
1 Maring on the ultimate outcome of
the French invasion of the lluhr are
expected in official and diplomatic
circles here to result from the vigor
ous note presented by Germany to
France Thursday.
Couched in language and carrying
a tone that smacks almost of an
ultimatum, the communication for
mally protested against the “frivol
ous massacre” of 13 and the wound
ing of .".0 German workmen by
French soldiers at Essen and de
manded “full satisfaction for the vie- '
tims and their relatives.”
It further contained the significant
demand for the "immediate release of
the persons arrested to cover the
French guilt.”
Full of Dynamite.
The note was regarded here as be
ing so full of dynamite that nobody j
would discuss it for quotation. It .
was plainly recognized, however, as
nn Indication of a turning by the
Germans on the invaders. What this
will bring about, only time can tell.
Investigation showed that a copy i
cf the document had been received
by the German embassy here, but
officials of the State department said
it had r.ot been communicated to
them. It was understood that it will
reach the department only through ]
such reports as come from Ambassa- |
dor Herrick id Paris.
The German embassy here declined
to say whether or not it had been in- ,
structed to present tho note to the
American government as a matter of
information or to comment on it in
.->(!,• r »■:!}• 1,’nder ordinary diplo- i
malic procedure it would !"•
. ommunicated to the state depart
ment.
Patience Kxliawsted.
In aeoing the •possibility of sorious .
trouble growing out of the German i
stand and Essen incident ltseir.
the temper of the German govern-j
ment. as revealed in certain passages
of the communication, was pointed to
by international authorities. For, ex
ample, the first paragraph might he
Interpreted as a warning that pa
tience has been exhausted. It says:
"The prudence and patience with
which the population of the Ruhr ter
ritory bore all kinds of acts of t io
lenco on the part of the invading
troops has not been able to prevent
that French soldiers have now com
mitted a crime on this population
which throws all misdeeds hitherto
into the shade.”
Trevious Protests Unheeded.
The German government also calls
attention to previous protests of simi- j
lar character which have gone unan
swered in such way as to indicate it
means to have a reply this time. The
whole tenor of the communication Is
that the. attack is vvithout provoca-(
tion or warning, and it is added that
even after the German workers start
ed to run they were still shot at.
"The responsibility for this disas
trous occurrence, however, does not
jest solely on the French troops.”
says the note, "but also on the French
I government itself.” •
A flat charge is made also that the
French tried in vain to falsify the j
actual facts and "thtis to obscure the
grave guilt of the occupying troops.” |
This brings France face to face |
writh a grave situation in which it
must make the next move. The char
acter of this move may determine
■whether the smouldering fires of re
sentment are to be fanned into flames (
of open physical resistance or if the,
outcome Is to he peaceful.
Reichstag Leader Is
Deported from Cologne
Cologne, April 6.—Max Wallraf. of
Bonn. Keichstag national leader, who |
was minister of the Interior In the
Michael Is rnblnet and lord mayor of
Cologne for a decade, has been de- i
ported from the occupied area, It was ;
announced today. ,
According to German reports Hie
total number of persons deported now
ixceeds 3.000, not including families
of the deportee.
Rebels Beseige Town in Brazil
Buenos Aires, April 6—The
Brazilian town of Urugunynna is be
seiged by revolutionaries. Their
camp fires, surrounding the town,
were visible tonight when darkness
fell, according to a dispatch to J-:l
Narlon, from Paso do las I.lbres
The correspondent adds that light
lug has taken place In the suburbs,
but that it ceased yesterday after
noon.
Itefugces are crossing the Uruguay
liver into Argentina In large num
bers.
Paymaster Bobbed of $2-1.000
Boston, April Ilobbery of a pay
master of the New TOngland Tele
phone and Telegraph company oftI3,
non was reported to the police here
today.
Bank Cashier Accused
of Embezzling Millions
Cincinnati, April 6.—An indictment
alleging the misappropriation _ of
funds totalling nearly $1,000,000 was
returned here by the federal grand
jury against A. H. Penfield, former
cashier of the Springfield National
bank of Springfield, O.
The indictment returned against
Penfield, who is in the Dayton (O.)
Jail, contains 12 counts. Ten of these
allego the embezzlement of funds and
two Misapplication of funds. The
exact amount embezzled according
to the Indictment is $377,233.
The defalcations of Penfield, accord
ing to the indictment, totalled the
above figure on March 6, 1923, when
he attempted to commit suicide in his
father-in-law's garage by slashing his
wrists.
Two days preceding his attempt to
kill himself, he is alleged to have em
bezzled Liberty bonds totalling
$130,000,
Capitol Probe
by Legislature
Is Nearing End
Committee Adjourns IJtil Mon
day When Balance of Tes
timony and Arguments
Will Be Given.
Special Ilhpniiii to The Oniulia Hrf.
Lincoln, April 6.—The legislative
investigation into charges of negli
gence anti incompetency filed against
Bertram G. Goodhue, architect for
the new statehouse, by George E.
Johnson, state engineer, is nearing an .
end.
Tlie committee adjourned until i
Monday morning. Both Mr. Johnson
and Mr. Goodhue asserted that testi
mony and arguments would he con
cluded in a few hours Monday.
Yonliin on Stand.
W. T.. Youkin, clerk of the works,
and Mr. Goodhue's personal represen
tative on the joh, occupied most of ,
tho morning in answering charges
of changes in plans made by Johnson.
Yonkin, an architect, himself, as j
serted real negligence on the part of ,
nn architect would tie failure to con
stantly study plans and endeavor to !
discover < hanges for betterment from
an artistic as well as a financial view- ;
point.
Younkin admitted there has been
mistakes. However, be aserted In
any job of such magnitude there
were certain to be errors and he
challenged proof that errors in the
statehouse Job were as few and com
paratively small from an erenomic
standpoint as on any Job vying
with the task under way at Lincoln.
Walls Will Last.
Charles Olson, a contractor, ns- '
serted the statehouse wall would j
stand for J,000 years. His testimony
was in rebuttal to testimony of James
Webber, another contractor, yester- j
day, that because of large Joints and \
failure to lay stones so one over
laps another sufficiently, would result '
in stones falling out within 20 years. |
On cross-examination by Johnson, i
Olson asserted a few stones in the
wall were poor in texture.
There was much argument and
testimony over the charge of John- ]
son that Goodhue had a "closed" hid
on acoustical materials. Johnson j
asserted that should the statement j
of Goodhue lie true that material!
contracted for for the first section i
of the building be more artistic 'and
realistic than that of another firm, j
the state could have forced down the
contract price of accepted material j
if Goodhue had permitted rijfnpeti
tion.
High School Dynamited;
Three Trustees Injured
Carrollton, Mo., April 6—Tho Mid- j
land High school, 12 miles north- i
cast of here, is In rulps today, three
school trustees aro at their homes
nursing cuts and bruises, while resl- j
dents of the district. with blood ,
hounds, are searching for unknown ,
persons who last night exploded i
dynamite under tho building while it j
was filled with 30 men a/id women, j
The three persons most seriously |
hurt are Claude Brown, Hubert, Biller ;
and Clint Ilultz. Their Injuries are |
not dangerous.
22 Earth Shocks Reported.
Ponta Delgada, April Twenty
two earthquake shocks have been felt
in the Azores In the last two days.
The tremors were the strongest In
tho western part of Ht. Michael Is
land, on which Ponta Delgada Is sit
uated.
Tie a String to
Your Finger
so you will not forget to place
your “Want” Ad in tomor
row's Sunday Omaha Bee.
You’ll have until 0 o’clock
tonight to get your advertise
ment to our office for tomor
row’s Sunday Omaha Bee.
Phone Atlantic 1000 and
ask for a “Want" Ad taker.
Three Lines,
Three l imes.
Ten Dimes.
Two Girls
Murdered
With Knife
Discovered by Milkman Be
side Road in State Island,
N. Y.—Tossed from
Automobile.
Three Men Held in Jail
Jersey City, N. J. April 6.—Three
men are detained in police headquar
ters here in connection with the
brutal murder of Mrs. Irene Rlandino
and Miss Bessie McMahim, whoso
bodies were found on Staten island
today.
The men are James Rlandino, hus
band of the murdered women; Nicho
las lie (iregio, his partner, and Ro
sario Hi Lorenzo. No charge has
been made against any of the men
any they are being held until police
can check up their stories and move
ments last night.
New lork, April 6.—With their
throats slashed, the bodies of Mrs.
Irene Blandino, 18, Jersey City, and
Itessie McMahon, of L'tira, N. V'.,
were foiiad today lying on a road
in (Staten Island where they had been
tossed from an automobile after
their throats had been eut with a
hull Iter knife. The blood-stained
weapon was pieked up in a field 100
feet from the scene.
Dr. George Mord, Richmond county
medical examiner, found three stab
wounds in the throat of Mrs. Blan
dino and wounds in her back ''cor
responding with cuts in her fur coat,
through which the murderers
plungetj the butcher knife as the
coup do grace in the horrible killing.
Similar cuts were found on Miss
McMahon except there were no holes
in her coat, which must have been
put on her later.
The faces and arms of both young
women were scratched.
Itodies Transported.
Despite the fact bloodstains were
discovered further down the road,
the police at-! romiricxk ttie two
young women were slain at some
other spot and their bodies transport
ed to the lonely spot in a motor car.
At least two score detectives in
Btaten Island are working on the case
and a general alarm has been sent
out to all ferries asking policemen to
watch for a blood splotched automo
bile and to arrest the occupants.
Mrs. Blandino was Identified by
means of her cork left leg. a receipt
for which was found In her pocket.
She Is 18 years old, while Miss Mc
Mahon Is 22. In their pockets were
found rolls of 85 bill*, amounting to
850.
The place w here the bodies were
found Is an exclusive section, but
thinly settled, ami is the rendezvous
of bootleggers and Joy riders. Nearby
a creek trickles its way to the bay.
affording just enough water to float
small craft of rum smugglers, w
Found by Milkman.
Walter J. Donovan, the milkman,
who found the bodies, was taking a
short cut hack to his dairy about
daylight when he saw something at
the side of the road that arrested his
attention. Investigation revealed a
horribly njurderod girl, lying fare up
ward, with blood from the wound In
her throat over the front of her dress
and neck.
Donovan looked around and on the
other side of the drive found the body
of a second girl, fare down In the
grass. He leaped into his wagon and
drove ns fast as he could to the Staple
ton police station, where he reported
the tragedy.
Acting Inspector Cornelius Colahane
sped to the scene In an automobile
accompanied by a parly of detectives
from the homicide squad .
Captain of Detectives E. h. Von
Wagener assumed charge of the case
and 20 detectives were assigned to as
sist him. He immediately ordered ev
ery exit from the Island guarded on
the theory that the murderers might
still be near, although they had ample
time to make .their' escape after the
gruesome killing.
The district attorney sent a repre
sentative to the scene.
Donovan, while not under suspi
cion, Is held near the scene ao he can
he questioned from time to time.
The murders come right on the
heels of the police department's "tight
ening up" to halt a so railed "crime
wave” that has swept New York dur
ing the last 10 days.
Evidence of fresh marks from auto
nlobile tiros and no signs of antrugglo
at the scene of the finding strength
ened the theory that the young women
were killed before they were brought
to tho place. Their hats were found
several feet, from the bodies.
Turks Boost Income lax
Hr A i»*o«,l *•«*«! I'rwi.
Constantinople. April ♦».—A derre®
has been Issued Increasing the Income
tax live fold, making It appllnble to
all foreigner'! regardless of length of
stay and retroactive to the date of
their arrlvnl. The rate on earned In
come Is 25 per cent gross, with no
exemptions. .
Yeomen (><t $3,0(10.
Warsaw, Jnd . April fi —-Yeggmen
blew the unfe In the postoffic® Ip're
early today, obtained $3,000 lit cAlh,
BtnmpH and re^iste^ed mall and ea
capcd ill an automobile.
Giant U. S. Dirigible
Completes Test Flight
Akron, O., April 6.—The TCT, the
United States government’s largest
arid newest nonrigid dirigible, made a
seven-hour continuous flight over Ak
ron and Cleveland today, preparatory
to attempting a nonstop flight to Scott
field, near St. Uouis, a distance of
more than BOO miles, next week.
Lieutenants F. W. McKee, Clyde
Kuntz and James G. Luck and Scr
geafits Olin Brown and Harry Barnes
of the-army air service, who will be
In charge of next week's flight, were
in charge of today’s test.
The balloon Is expected to fly to
Dayton, thence towards Indianapolis
and then to St. Louis on Its trip to
Scott field. It is the first of three
dirigibles being built here for the gov
ernment for use In training dirigible
| pilots, to be completed.
New Credit Banks
Will Make Loans
Under 7 Per Cent
—
Federal Loan Board Expected
to Fix Interest Rate at 5 1-2
Per Cent—Rules Are
Announced.
Washington, April 6.—Indications
were given by the federal farm loan
board tonight that an Interest rate
of 5*/4 per cent would be charged on
loans made by the new intermediate
credit banks. At the same time an
nouncement v.as made by the board
of the official rules and regulations
governing loans under the agricul
tural credits act.
While the Interest rate to be
charged will be fixed by the credit
banks, subject to approval of the
farm loan board, farmers will be able,
if the indicated interest rate is ar j
cepted, to borrow money at 7 per cent
or less. The law specifies that the
rediscounting agency shall rot
charge in excess of 1'4 per cent for
handling the obligations.
Commissioner Isrhdell said be ex
pected some of the banks would bo
ready to make actual loans by
April 2d.
Kates Probably Uniform.
Although It is not necessary that
the rates of the 13 banka be uniform,
board members believed they likely
would be. Mention was made of the
possibility that some rediscounting
corporations, such as the co-opera
tlves and oth<^ associations made up
strictly of producers, may not take
the full fee allowed them by law,
and It was pointed out that any such
action would make for cheaper Inter
est charges to the farmers or livestock
growers.
The opinion was general that a rate
of EVj per cent, with the rediscount
charge added, would mean a material
reduction to the average farmer In
interest.
The board has decided “for the
present” to limit loans under the
credits act to livestock, grain, wool,
cotton, tohaeco and peanuts ns
“staple agricultural products" within
the meaning of the law. Loans on
dairy products, eggs, fruits and vege
tables are left to future determina
tion, but the exclusion of those com
modities, it appeared, I* not in
tended to be permanent.
Will l imit l/oaii*.
The board, It was Indicated, de
sired to give further study to rules
governing the handling of perishable
products.
A limitation of loans to nine
months' maturity also Is prescribed
In the regulations aa the maximum,
while the minimum life of security |
to tie taken by the credit hanks was
fixed at not less than '"six months
from tho date of the transaction.''
The credit tranks will accept the re
ceipt of any warehouse licensed and
trended under the fedei-nl warehouse
act, but all other cases the warehous
ing luwa and regulations of the state
controlling them muat have the sp
proval of the farm loan board.
The regulation* . provide also that
the pai<I In > npltal of agricultural
credit corporation must !-• $10,000
or more before loans may bo granted
them on paper rediscounted for ad
vances for agricultural purposes In
the first Instance. When loans of
any kind ate made on livestock, the
rules specify, a collateral agreement
must accompany the aecurlty offered,
so that additional aecurlty may be
supplied at any time the credit bank
so demands. Two examinations year
ly of nil corporations and associations
seeking rediscounting privileges are
required by the regulatlona. examine
tlon to be condueted by national
bank or land bank examiners.
Securities Itrqulred.
It is also atlpulated that any cor
poration submitting debentures for
rediscount with tho credit I sinks must
deposit with the firm loan registrars
the securities upon which the deb< it
tures are based,
Co-operative credit associations,
seeking rediscount privileges, will lie
required to file with the credit bunk
of their district complete data con
certdng their charter,'plans of opera
tion and statements of Us counsel
that It has full authority under the
laws of Its ststn tn set as a pedis
counting agency. All of these will
have to be approved by the farm loan
board, In addition to the loin I credit
bank before actual loan operation* are
permitted.
Maybe We’d Better Try Some Other Method
thats queer.
THE. iiOJRE
■ I SHOOT
) THE FASTEN
[THEY COME
l ON . I
Rabbi Succumbs
Following Attack
c
Sail Francisco Man Dies of
Wounds Sustained in Ho
tel Tuesday Night.
San Francisco, April 6—Rabbi
Alfred J. Lafee, 22. of the Bush street
temple, who was beaten into un
consciousness by an unidentified man
in a hotel room Tuesday night, died
today.
The rabbi bad been unconscious
since the attack. Late Thursday
night an operation was performed in
an effort to save his life.
Rabbi bafee's mysterious assailant
was a strongly built man of 175 or
18n pounds, and wore the uniform of
a seaman In the United States navy.
Rabbi Lafee and the stranger came
io the hotel together about 8 Tues
day night. Rabbi Lafee rcgisterisl
under the name "A. Layne." and the
stranger under the name ”11. B.
Hickman.” The rabbi later telephoned
(o ttie clerk asking to be called at
6 in the morning. About 4 the
stranger reappeared in the lobby,
rolled a clfearete and departed.
The call failed to get a respond
from the rabbi, and the clerk found
him leaning against a washstand,
senseless from a battered skull ami
an attempt to strangle him Marks
On his nock Indicated that a rob"
or twisted sheet had been used.
Mail Bandits Escape
With $L\139,900 in Bonds
St. Louis, April Unsigned bonds
totalling $2,13H.900 consigned from
Washington to the St. I.nuls Federal
Land bank, were taken in the mall
truck holdup here last Monday by six
armed bandits, it was announced to
day by the postal Inspection depart
ment, checking up on the losses. The
bonda were worthless without the sig
natures of officers of the bank, but it
is feared the robbers may attempt to
make them negotiable through for
gery.
The atolrn land baifk bonds were
In number and denomination as fol
lows: Ten of $40; 20 or $100; 500 of
$1,000: 25 of $5,000, and 15 of $10,000.
The total of other bonds taken, It
was learned by the Post Dispatch, win
approximately $226,000, of which $51,
250 at leas^ were negotiable
Two Farmers Are Killed
\\ flow Train Strikes Auto
1 "dependence, Ore. April S.—
Fred J Feathcuatone amt Jdm pli N
Jour*. farmers, were Instantly killed
nnd Davlif Qulrlny, 1!>. was probably
fatally injured when an automobile
In which iliev were riding waa struck
by a northbound Southern Pacific
electric train at a grade crossing
near here today, t
Kills Woman and Self.
Trenton. N ,t . April <i Ralph K.
Halley, a photographer, shot and
killed a woman, named Mr*. Knpllsh,
anil then kill'd himself In his studio
here this afternoon, according to the
poll' e.
Americans After
German Railways*
Engineer Charges
Well-Known Mining Vuthority
Warns of Danger From
Franco-Belgian ^ orld
Monopoly.
Ity Associated I’r*...
Beilin, April 6.—Charges that Amer
ican interests have been trying to get
control of the German railroads and
that there1 is imminent danger of a
Franco-Belgian combination for a
world mining monopoly as an out
growth of the Ruhr occutiation were
made In an address by Dr. Neuhau
sen. a well known mining engineer,
before the Association of German
Engineers.
"Before the war," Dr. Xeuhauaen
said, "Germany led in heavy indus
try. surpassing the English and the
Americans. The result was the wor.
Had Germany won and the ore basins
of Dmewy and Brley been made avail
able to her. then the American heavy
Industry would have been done for.
‘‘Now it appears a near possibility
that Prance may assume Germany's
position. For this she needs coke
and the Industry of the Ruhr district.
America cannot and Crill not permit
France to dominate absolutely In the
European mining Industry
"In accordance with Its old trust
recipe, America is Interested primari
ly in getting hold of the German in
dustrial railways. Therefore, It is
now most highly dangerous to speak
of 'privatizing' the German federal
railways
Mr. Eloyd Georgi s plan for Ger
many. France and Eti lurfcl to mni
bine economically against America
was shattered through lh« policy of
the foreign minister. Dr. Simon.
There are vpll known trust founders
among the Belgians who perhaps have
participated In the Ruhr occupation
just for that reason
"We face the great danger that out
of the national rivalry between France
and America there will eventually de
velop at Germany's expense a world
mining tiust. through which Germany
will be dollarized amt In which Eng
land will play the part of him who
laughs last amt best "
Macon Victim of Kiiliiapert
* Prepares to Leave Town
Macon, tia . Aj'nl (•—Suffering from
more than 200 welts ami stripes on
his body, lnfttctoil by the beating ail
ministered him on Wednesday night,
I*. 1,. Bright of Macon, today was
making preparations to leave, accord
Ing to lbs announced intention.
Tha right members of the bamI
which attacked him, gave Bright 24
hours to leave the city under threat
of death, according to his statement
to the police, backed up by the state
ment of Mrs, Fredericks face of
Nnv York, who was a witness to
tho whipping, hut Bright said yester
day that he coul l not make final ar
rangements to leave before tile flrat
of tile week.
Allow Fraud Case
Jurors to Go Home
%
Judge Woodrougb Changes
Order Keeping Men To
gether Over Weekend.
After issuing an order yesterday
neon that the jurr In the mail fraud
• ase be kept together during the rest
of the long trial. Federal Judge
Woodrough later suspended the
order, at least. Until nest Monday.
He allowed the 12 men to go to their
homes ovirthe weekend.
The 15 attorneys employed In the
case objected to Judge Woodrough’s
plan to hold court Saturday. They
said they had to have some time to
attend to their other business. The
tudge then suspended the order. The
trial of the 15 men charged with
mail fraud In promotion of the
Colonial Timber and Coal corporation
will begin its fourth week Monday
morning at 16.
W. 11 Wade, an attorney, formerly
living in West Virginia, now residing
at Alhuquerque. N. M„ testified
yesterday afternoon that he searched
the records of West Virginia hack
through many yea rg and did not find
the lands claimed by the Colonial
concern entered on die tax books
under the name of the people through
whom the Colonial claims to hold
title.
Publisher Cels License
to V ed C.onstanee Mackay
New York, April S—Roland Hoik
son «'f Henry Holt. the publish**,
and Constance d’Arcy Mackay, wide
ly known writer, obtained a marriage
license ,and wilt he married at Grace
church next Wednesday. #
Mr, Holt, who is 55. described him
self as an author and publisher. His
fiancee, who was born in England,
the daughter of Robert G Mackay.
gave her age as S>'>.
Miss Mackay was director of the
department of pageantry and drama
of the war camp community service
in 191S 19. •
The Weather
Forrrut.
Saturday: Probably snow; colder.
Thu wrjuhor#for ?4 hour* *Tut;n« ? p^
m , April 6
Trmprnilurr.
111011**1. M; loW|Rt, 5*. knrtn, 47; nor
mat 47 Total *\c#*** a»«« * January 1.
su
Iti Ij*t i\ •» Humltlih . l,»o'('UU*f.
; a in . 41. Boon, ** 7 r m., <
IVr«i|)lliili(»n. I nr hr* nml 14umtrtslfh*
Total, non*; total ainv* Ja»*uats St
4 .91 , MfMI, IS 1.
Hourly Tom porn turn*
A ». in II
« *. n» ,., . 4rt
7 it. nt . IS
l i. m • • . . * 4#
W *. Wt . M»
in it. m ,.» 47
II a. tit. 4 7
19 IHNttl .... At
I p. in V:
9 |». mi . .
* l» »» .. 4*
* V -Mi . 41
* l» m . 4«
* I* m ..... . .99
1 »». mi ...... W
* p. m S"
1 «»mp4*n»tmr» nt 7 r. m
rh*» • nn«i 4*
..
t)*» Molnr* 4*
City T ti'
1 >»r 44
NiM^h V’*u<*. Jf!
Puelkto . 0
Hiip.il »Clty . . 20
Halt l^k*« City. 31
Santa Fr
Min ittan ....... .ft
s\m v ally . .... 31
Wildcat Oil
Promoters
Under Fire
Millions Filched From Public
Through Sale of l ake Stock,
Report to Postmaster
General Says.
Government Plans Action
lly \«,<>< iatr<l
Washington, April 6.—Oil stock
promoters operating in the state of
Texas during the last five years have
filched more than $190,009,000 from
the public. Postmaster General S> w
was advised by John II. Kdwards. so
licitor of the Pogtofflce department,
and Chief Postal Inspector fc'imimins,
who are in Fort Worth co-operating
with the Department of Justice in the
prosecution of mail fraud cases ;u
volving oil promoters..
In making public the report. Post
master General New also declared the
Postoffice department intended to
move in the )<iost vigorous and per
sistent mannef pot sible for the en
forcement of both the criminal law
and the fraud statutes against the
fraudulent use of the malls, not only
in the sale of fraudulent oil stock*
but all other cases involving fraud in
the math,.
Government \ppealed To.
Mr. New said the government had
been appealed to “by disillusioned
stockholders to stop the oil stock
frauds” after “wildcat promoters."
had escaped prosecution by state au
thorities. Postoffice inspectors, he
added, have been working since last
summer on more than 200 cases, many
of which have already gone to the
grand jury, now- in session at Fort
Worth.
The report to Mr. New fo"ows in
part:
"More than 1100,000,000 is the es
timate placed by postoffice inspectors
upon the amount of money filched
from the public during the past five
years by-oil stock promoters operating
in the state of Texas. This statement
1 challenges the attention of the coun
try and demands speedy and certain
action. Postoffice inspectors also re
port that companies and syndicates
have been organized, run their course
1 and passed away by hundreds during
these five years, leaving approxi
mately 500,000 stockholders scattered
throughout the United States to
mourn the fading of roseate dreams
of wealth with the final disappear
arre of their hard-earned foliars
*to<k Selling Schemes.
"So doubt some of these companies
were started by men who hoped to
strike oil and make money from pro
; duction, but in practically every case
the urometers laid their plans to profit
from the stock selling, regardless c£
the re«ult of field operation?. Seldom
was it that a promoter in' ested any
money of his own.
"Aim -t all the promoters' concerns
operate as common law' trusts. Over
such organizations the Texas statutes
i provide no supervision whatever. The
promoters appoint themselves the
trustees, with sole and unlimited
power to procure and handle the
; money of their investors as they
please without question from ary
ftate authority.
"To impose the penalty for u«ing
- the mails to defraud, the Post o ffice
.it,— t and (he agents '* l>
Department of Justice must s tow suf
; Orient evidence of intent to defraud.
| Th. department representatives re
t ort that the . ases, especially tr.ore
invclvit g large slock selling r 'be ires
are the mn-t complex and difficult to
i handle of all criminal cases arising in
the federal jurisdiction. For this
1 reason they require months ar.d seme
times years of patient and persevering
investigation." ,
F.x-Governor of Porto Rico
W ill ( Iiallence His Critic*
Galveston. Tex . April $—E. Mont
Reih . former governor of Port* Rico,
announced his intention of challeng
ing every editor in the United States
who had criticised his administration,
i to public debate as soon as his health
improves. Reily declared he had been
the victim of malicious persecution
because he had tried to Americanise
Porto Rico.
Reily asserted his persecution began
when he attempted to ’’clean up'*
the situation m Porto Rico. He
i charged that hundreds of thousands
’of dollars were spent In propaganda
against him in the United States b>
the Porto Rican unionists.
Florida State l onviot
System Is l ndcr Fire
Tallahassee. Fla., April 6 —Full in
vestigation of the Florida convict
lease system with a view to abo! .sit
ing it, as the result of the death of
Martin Tabort. North IWkota youth, ’
front a prison camp flogging was
• recommended today by the commit* «
appointed by the Florida house of rep
resentatives to act upon the request
of the North Dakota legislature for
nn investigation into the matter.
12 Towns Inundated.
Freeport. III.. April S -streets amt
basements of homes of Freeport and
(It other towns n northern Illinois
}and southern W.seonsln are flooded
(today w the IVctaonlca and Sugar
1 river# on a rampage
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