Daily Bee
PART ONE.
NEWS SECTION
PAGES ONE TO TEN
THE WEATHER
Fair; Warmer
VOL. XLVI. NO. 311.,
OMAHA, SATURDAY MORNING, JUNE 16, 1917 EIGHTEEN PAGES.
VJ.'wXtftSZX SINGLE COPY TWO CENTS.
BllUOn SURPLUS FOR LIBERTY LO
RINE FIRES B
MALONEY ca
THE
Omaha
AN;
omm
r a c
FIRST ISSUE OF LIBERTY
BONDS IS OVERSUBSCRIBED
BY NEARLY 50 PER CENT
Estimates Made One Hour Before the Books Closed Place
Total at Approximately Three Billion Dollars
Four Banner Districts Offer to
Take the Entire Issue.
Washington, June 15. The Liberty loan has been
tremendously oversubscribed. When the books closed at
noon today, treasury officials estimated that the total
would reach at least $2,500,000,000 and might soar to
$3,000,000,000. .
Every Federal Reserve district, with the possible ex
ception of Atlanta and Kansas City, appeared to have ex
ceeded its minimum allotment. Reports from these two
districts were slow in coming in. With thousands of banks
to be heard from in the two districts, however, it seemed
likely that the minimum allotment would be reached in
each case.
Reports from every section of the country told of an
avalanche of smaJl subscriptions at the last moment. Scores
of small investors were standing in
line at hundreds of banks throughout
the country during the final hour.
Swelling the huge total by millions
came the belated subscriptions of the
banks that held back till the last mo
ment. The clerical forces of virtually
every reserve bank were practically
buried under a landslide of eleventh
. hour subscriptions.
Because of this Situation the exact
total subscription may not be knownJ
for many hours. The full magnitude
of the country's response even may
not be measured for several days. I
Four Districts Take Two Billion,
Four banner districts Xew Yprk,
Chicago, Cleveland and Boston ap
peared on the face of returns at noon
to have subscribed the full SJ.OOO,-
, 000,000 ofeiBlo4ie...Neuii3kS,Y' -V?-?
' vas expected, led all other 'districts - London.. Ji
by a margin of more than double the
: .xt highest. This estimate was made
on the basis of reports an hour be
fore the books closed in the east.
;San Francisco started the day with
a sensational advance from its. previ
ous report of. ?52,000.000. The first
thing officials heard this morning was
.that instead of being approximately
t.OOO.OOO under its' minimum allot
ment, the district was nearing the
minimum and probably would take
its quota.
In the Dallas district the figures
stood t $29,000,000 when the day
started $11,000,000 less than the min
imum allotment. There were, then
more than 2,000 banks to he heard
from.'
It was thought their response would
easily swell the total to the minimum
of $40,000,000. , "
s A' acement by McAdoo.
Secretary McAdoo announced the
oversubscription of the loan in the
following statement: '
"The Liberty loan has been over
subscribed. It is impossible to state
the amount of the oversubscription at
this moment, but exact figures will be
given out as rapidly as the returns
are received at the Treasury depart
ment. "The success of this loan is a gen
uine triumnh for democracy. It is the
unmistakable expression of Ameri
ca's determination to carry this war
for the protection of American rights
and the re-establishment of peace and
liberty throughout the world to a
swift and successful conclusion.
"I am deeply grateful to the bank
ers, the business men, the women of
America, the patriotic organizations
and the peot-le generally without
whose cordial co-operation and en
thusiastic support success could not
have been won It has been an in
spiring campaign and it has- had a
glorious finish."
Kansar City and Atlanta Slow.
Apparent failure of the Kansas
City and Atlanta districts to reach
their minimum, based on early re
ports, reflected, officials believed, the
failure of the cotton 'farmers of the
south and the wheat growers of the
west to respond as fully as it liad been
estimated they would. It was point-
(Contlnufd on Page Two, Column One.)
Sunday Schools Will Aid
Red Cross Movement
Chicago, June 15. The Interna
tional Sunday School association has
sent word to affiliated organizations
to -form themselves into auxiliaries to
the American Red Cross society. The
notice went forth in connection with
urgent requests for the observance of
July 1 as ''Patriotic Sunday." The
association represents approximately
150,000 Sunday schools with a mem
bership of about 18,000,000 persons.
Hundred Shirkers Are
Arrested at Chicago
Chicago, June 15. Abot 100 shirk
ers are in Chicago jails today for
having failed to register under the
draft law June 5. The arrests came
in an all-day and night drive by the
police to round up men of military
age who had not registered. Sixty
men were arraigned before Conrlm
sioner Mason yesterday, but all ex
cept five were released when they
agreed to register. ,
BRITONS STRIKE
ANOTHER HARD
BLOW ALONG LYS
German Trenches on Seven
Mile Front Occupied to a
Depth of 500 to 1,000
Yards. ;
y-'
unc
T5e'"Brit1sn
struck another blow last night on
the front near Messines, the war of
fice announces. They gained all their
objectives, advancing south and east
of Messines and astride the Ypres-
Comines canal.
The British now occupy the former
front trenches of the Gernfcns from
the Lys river to the Warnave river,
As t result of last night's operations
and the constant pressure exerted, the
British have advanced their lines 500
to 1,000 .rds on a front of seven
miles.
Official Announcement.
The official announcement reads:
"Our troops attacked yesterday eve
nine south and east of Messines and
astride the Ypres-Comines canal. The
enemy s resistance w s quickly over
come and the whole of our objectives
were gained in both localities. We
captured more than 150 prisoners, one
howitzer and seven machine guns.
"As a result of these operations and
the constant pressure maintained by
our troopi since .' 'lie 7, we now oc
cupy the German front trenches from
the Lys river sto the Warnave river
and have advanced our line from 500
to 1,000 yarH on the whole front from
the Warnave riveo to Klein Zillebeke,
a distance of about seven miles. -
"Wc made a successful raid last
night north of Lens. Many Germans
were killed in hand-to-hand fighting.
A few prisoners were taken by us."
Germans Repulsed at Verdun
Paris, t June 15. Reconnoitering
parties were sent out by the Germans
last night in the Verdun sector at
Hill 304 and on the Meuse, the war
officeVannounces. They were caught
under the French'fire and dispersed,
The statement follows:
"Artillery fighting continued during
the night In the region of Hurtebise
and Craonne these actions were
rather violent South of Juvincourt
brief and severe bombardments were
carried out by enemy batteries. Ger-
reconooitering parties were
caught by our fire near Hill 30 in
Chavelliers Wood, on the heights of
the Meuse and in the vicinity ot bion
court, in Lorraine, and were unable
to approach our lines. Everywhere
else the night was calm." ,
Berlin Admits Loses.
Berlin, June 15. (Via London.)
Retirement of the German forces at
two points on the front in Belgium
is reported in today's official state
ment. The Germans were pressed
back by the British between Holle
beke and the -region of the river
Douve and also southwest of Warne
tonS President Signs Three
' Billion-Dollar War Budget
Washington. Tune 15. President
Wilson today signed the $3,000,000,000
war budget bul, which carries appro
priations for the new army and other
war propositions. It is the largest
single appropriation measure ever en
acted by any government.
New West Point Class is
Largest in Its History
West Point, N. -Y.. June 1 5. A
class of 352 new cadets has been ad
mitted to the military academy. This
is the largest "plebe" class in the
history of the institution and brings
the present enrollment of the acad
emy up to 900,
jiu L hippewas t ubsc vf " .
$162,250 to Liber,4n
Ashland, Wis'June lS.-TFhree
hundred and forty Bad River Chip
Jiewa Indians subscribed $162,250
or Liberty bonds. A full-blooded
orphan Chippewa boy aged 17 went
to the bank, where he had $18,000'
to his credit, drew $7,500 and
bought bonds.
GREATER OMAHA
BUYS OVER NINE
MILLIONS BONDS
Allotment of the Gate Ciiy Is
Oversubscribed Nearly Three
Million by 12,500
Buyers.
The Omaha subscriptions to the
Liberty loan bonds total $9,183,650.
This comes from more than 12,500
subscribers and the banks and build
ing and loan companies.
Thesj: figures were officially re
ported to the Federal Reserve bank at
Kansas City at noon by Luther Drake,
president of the Omaha Clearing
House association.
The Omaha allotment was $6,500.
000. Thus Omaha is nearly $J,000,000
oversubscribed. .
By Thursday night $14,000,000 had
been subscribed-by the entire state
of Nebraska. This means that Omaha
subscribed over half of the total for
the state.
The quota for Nebraska was origi
naliy fixed at $16,500,000, according
to directors ot the federal Reserve
bank, who sav that the figure of some
thing over $22,000,000, which has been
mentioned as the amount expected
from this state, was unofficial and in
correct. No figures are -available on the
total subscription for the entire
state, as nothing later has been re
ported from out in the state since
the figures available Thursday night
Though the subscriptions 'officially
closed at noon, persons mav still buv
-these' bonds from the banks, as the
ban lap Bviatetjre?MBf'y.-Oi
thousands and million" dollars' worth
and will continue to dispense' them to
any of their customers for some time.
Nearly Half a Million.
Just before noon the subscriotions
of the Union Pacific employes
amounted to $390,300. The commit
tees were still working. These figures
represented the subscriptions of 3,529
employes, president Calvin of the
Union Pacific is a member of the
Liberty loan committee locally. He
has attended every meeting and has
shown great interest.
The stock yards committee, headed
by Gene Melady, has taken subscrip
tions in the Exchange building on
the Sputh Side totaling $97,500. Mr.
Melady says all the commission men
and traders have subscribed.
The Maney Milling company re
ports twenty-seven subscribers among
the employes, totaling $12,350.
The Ford Motor company reports
subscriptions from sixty-three em
ployes, totaling $6,700.
The Western Union reports sub
scriptions from 220 employes, totaling
$9,550.
The local E'nai B'rith has sub'
scribed $300 to M'e Liberty loan.
At the meetings of the Bohemian
societies Thursday night the Liberty
bond subscriptions were given a
boost. The, Ted Jed Sokol took $2,000
ot the bonds, the 1 el Jed aokot Ivrs
$500 and the Bohemian Turner Girls'
society $200. The Tel Jed Sokol do
nated $50 to the .ed Cross.
Espionage Bill Signed
By President Wilson
Washington, June 15. The admin
istration espionage bill was signed by
President Wilson today.
DE. A. 0. THOMAS NAMED AS
HEAD OF MAINE SCHOOLS.
PROF. A. O. THOMAS.
. . .-r-
Angusta, ' Me., June 15. (Special
Telegram.) Dr. Augustus O. Thom
as of Lincoln, Neb., was this after
noon nominated for state superinten
dent of schools frir Maine by Gover
nor Carl E. Milliken. Confirmation
will be in order at meeting of execu
tive council, June 25. The salary is
$4,000 a year.
s v . .-
r
Our Bit and Then Some
f
(
i . 3WBy
CONGRESS ASKED
TO INVESTIGATE
Resolution Introduced in House
Asks Probe of Changes Re
sulting in Impairment
of Service.
From a Staff Correspondent.)
Washington, - June -15i (Special
Telegram.) So flagrant have been
transfers of- railway mail employes
from road service to terminal stations,
resulting in reduction in salaries from
$200 to $500, that members of con
gress, especially from western states,
are receiving hundreds of letters in
protest.
Inquiry at Postoffice department
fails to reveal any good grounds for
.these transfers and many'congress
men are wrought up over the situa
tion and as a result a resolution has
been introduced in (he house by Rep
resentative Van Dyke, Minnesota, di
recting the committee on expendi
tures in the Postoffice department to
make an investigation and report on
these transfers with the recommenda
tion for action by the house if deemed
necessary.
Congressman Loberk, who has re
ceived many complaints regarding
transfers of railway mail employes,
will probably supplement the resolu
tion of Mr. Van Dyke with a view to
broadening its scope so that it may
be possible to ascertain what is be
hind the large number of transfers,
salary reductions and consequent im
pairment of the mail service with re
sultant delay in mail deliveries.
Indiana Mob Makes
Teutons Salute the Flag
Aurora, Ind., June 15. Exciting
scenes marked the close of Flag day
in Aurora. A mob of citizens number
ing 1,500 to 2,000, including many
women, last night caused an en
forced display of American flags on
homes and business places of oro-
German sympathizers.
for more than two hours the crowd
marched from house to house, drag
ging men out of their homes, some in
night attire, and forcing them to hoist
nags over their homes, others to wave
and salute flags.
The nearest approach to violence
was the exchange of fist blows,
Beatrice Man Would Be
U. S. Brigadier General
(From m Staff Correspondent
Washington, June 15. (Special Tel
egram.) General L. W. Colby of
Beatrice, who has been in Washing
ton several davs. is lookintr forward
.to meeting the president next Mon
day members of the Nebraska dele
gation with view to requesting ap
pointment as brigadier general, he
being over age for commission as
colonel.
Daniels Asks Big Su?i for
War Clothing for Sailors
Washington, June 15. Secretary
Daniels asked congress today for
$700,000 for warm clothing for blue
jackets on cold duty at sea and for
amusements to keep them happy in
training camps ashore. Special ap
propriation bills were asked.
TOSTWilFTS
rfk -Ul
MEDIATION BOARD
TO TAKE A HAND
" IN LOCAL STRIKE
Governor Neville Orders Rob
ert Cowell to Convene the
- State Board of Which
He is Chairman.
The strike situation in Omaha will
be investigated officially beginning
Monday morning at 10 o'clock, by the
State Board of Mediation and Inves
tigation, created by the legislatute
three years ago.
Governor Keith Neville has called
this board to sit in the case.
Robert Cowell of Omaha is chair
man. In his letter to Mr. Cowell,
Governor Neville said "1 now deem
it advisable that this board should
take the matter up at once, and you
will therefore notify the other mem
bers of the board to meet and take
steps to properly conduct an invcsli
gation." The members are Robert Cowell of
Omaha, A.J. Sawyer, Lincoln; T. 1'.
Reynolds, Omaha, and George Nor
man, Omaha.
Mr. Lowell lias railed the meeting
for 10 o'clock Monday morning in the
rooms of the Board of Education, city
hall.
"I shall notify Hie secretary of the
Business Men's Association of Omaha
to appear," said Chairman Cowell,
"and I shall notify T. P. Reynolds,
president of the Central Labor Union
of Omaha, to have on hand such wit
nesses and persons to be examined as
he thinks best to present the case of
the union men."
Power to Examine Books.
This board has power to compel
contractors, employers and unions to
bring their ledgers in and allow them
to be examined with reference to
wages paid, profits made, etc.
The board was created by an act
of the legislature three years ago.
For months after the act was passed
Governor Morehead neglected to ap
point the board. When The Omaha
Bee repeatedly insisted that the gov
ernor was. delinquent in his duty in
not making the appointments, as re
quired by law, he finally named the
above men for the places. Although
the board is three years old, it has
never held a meeting before.
Ordered to Proceed.
He then was ordered by Governor
Neville to proceed with a hearing.
Few strike disturbances were re
ported Friday morning. Delivfries of
building material are being made, and
only in a few cases were the police
called to assist a driver. When they
arrived in most cases they found the
drivers had not really been attacked
or threatened, but were calling for
assistance more from timidness than
from any real necessity for protec
tion. Many wanted policemen to go
with them on deliveries, though no
pickets were in sight.
Uruguay Will Treat U. S.
Ships as Nonbelligerent
Monteveidjo,.' Uruguay,. June 15.
The senate1" decided today that if
American, warships visit Uruguayan
ports they will be treated as nonbel
ligerent!. Warships rated as bellig
erents would be permitted to remain
in port only twenty-four hours and
would be limited as to the supplies
which they might take on.
STAR WITNESS TESTIFIES .
HE PAID GRAFT TO SUTTON;
PLOTTO MUZZLE MRS. PHELPS
Bricklayer Honeywell Swears Paid Twenty-Five Dollars to
Detective to Bring Freedom From Prosecution ; Wom
an's Brother Tells of Alleged Effort to Influence
i Sister's Testimony in Police Case.
Testimony at to alleged efforts to influence the evidence
of Mrs. Elsie Phelps with the intimation that the police depart
ment assisted, and further testimony that graft money was paid
to Detective Sutton furnished the big thrills in he nearing of
charges against Captain of Detectives Steve Maloney before the
city commissioners. ,
Sessions continued all day and were full of spice, sensation
al in the extreme, and held the constant attention of a huge
crowd that attended. They, promise to extend into next week
with an unfolding of salicious detail that has already caused.
one young woman stenographer to throw up the task of trans
scribing testimony.
Among the features of the
Attorney Rine that Raymond Lowry, brother of Elsie Phelps,
sought in connection with an alleged effort to have him influ
ence his sister with relation to her testimony at the hearing.
a E. H. Blakeley, agent for the company employing Lowry,
testified that the latter mentioned the affair three weeks ago
and that he went to offer bail for Lowry at the jail Thursday
evening and was refused. Chief Dunn announced the arrest
had been made in the regular manner.
RETAILERS PUT
FORTH KICK ON
TAX INCREASES
File Petition Pointing Out the
hardships Wholesale BoostM
1 I
Would Inflict on' Business
Houses and Upon City.
A petition of protest against the
county assessor's wholesale increases
of personal tax assessments, signed
by W. G. Brandt, president, and J,
IW. Metcalfe, secretary, has been sent
to the Board of Equalization by the
Associated Retailers ot Umaha.
The retailets point out the hard
ships the increases would inflict on
many business houses and the injuries
they would do to the city of Omaha
as a whole.
The petition of protest is as fol
lows: "Pursuant to a resolution of the
Associated Retailers of Omaha,
passed at their monthly meeting June
14, 1917, the undersigned officers of
the association hereby respectfully
protest the proposed personal tax as
sessment increases.
"The personal tax assessment valu
ations have been ascertained during
a course of years in which careful at
tention was given to their ascertain
ment. Raises have been made in
many instances from year to year, so
that the present situation represents
the combined judgment of the several
Uuards of Equalization which have
passed on these matters in the last
decade. s
Pays More Than Share.
"It is common knowledge that
Douglas county is paying more than
its share of the state equalization.
"The proposed general increase
would, of necessity, increase the un
due proportion of state tax burdens
now being carried by business men of
Douglas county.
"We all know that because of the
war situation many laws have been
already enacted by the national con
gress, and more are in contemplation,
which will enormously increase the
tax burdens of the business men. This
burden will, of course, be cheerfully
assumed, but it woul ' seem that at
this particular time care should' be
exercised not to unduly increase their
taxation burdens in other directions,
"It is expected by all that the war
situation will be a great financial dain
in many ways aside from direct taxa
tion, and every resource will be
needed by the business men to meet
these heavy obligations.
Hardship Would nsue.
l lie proposed increases are so
large that a very great hardship, if
not positive harm, would ensue if by
any chance they should be imposed.
In this connection it might be
borne in mind that competition, es
pecially among branch houses of
manufacturing establishments, i
(Continued on Paso Two, Column Foor.)
Wilson Pushes Food
Control Bill to Front
Washington, June 15. President
Wilson threw his personal force be
hind the food bills today with the re
sult that the senate will b-iin w.
pn t'je control bill tomorrt
-.it it through aheai of the war ta;
. . id other meas res. T' t-n-had
made - prti-. --ii to take '.: e
Monday.
As a result of the conference the
food control bill was introduced ir
the senate la:, today by Senatoi
Chamberlain. Chairman Gore of the
- 'riculture comm' e. did not .
duce it. because he opposes so many
of its provisions.
day was a statement from Citv
!' SAID PAID SUTTON S2S.
W. R. Honeywell, bricklayer. In-
sisted that he paid 125 to Detective
Sutton to prevent being harrassed by
that officer.
Testimony was offered by Thomas
Foley and Fred Palratag to refue al
legations of Thursday regarding Mo
loney's alleged connection with a
questionable sutomobile transaction
and a hog-feeding ranch. ' '
Mrs. Margaret Melaon implicated
Paul Sutton and Elsie Phelps in. in -unenviable
manner. Mrs. Gail Out- . -
non,ont of the witnesses who h4--.-
t!!e-?u,?6MIf !i4
nm tn f:nitniil KliiHa 4m il..n. ih.
necessity ot testitytng. The young
woman who had been taking the-testi
mony in snorthtnd asked to be ex
cused during the afternoon when Mrs.
Melson's testimony grew too risque
for her sensibilities.
Foley Says Auto Sale Regular.
Thomas Foley, automobile sales
man, testified he sold an automobile
last December to Mrs. Maloney for
$1,350; that the Car had originally
been sold to R. E. Bradley of Bed
ford, la. He said the sale was bona
fide to Mrs. Maloney. Mr. Foley was
summoned to refute the testimony of
Paul Sutton regarding the Mayfield
automobile case referred to on Thurs
day. It was on account of this inci
dent that Mrs. Maloney shouted from
the council chamber balcony and Ma
loney called Kugel a "rat."
Fred Pilmtag of the Missouri Pa
cific offered oral and written testi
mony to disprove allegations by Sut
ton, that hogs stolen from Belt line
were traced to the Maloney ,hog
ranch. Palmtag showed the hogs had
been sold to a South Side firm and
that the thieves had been arrested and
had confessed.
Mike Paul was called to testify re
garding an alleged transaction in
which he said Malonev advised him
against suing a railroad company on
account of loss of a limb.
The hearing will be resumed this
morninc at 9 o'clock and will be con
tinued into next week. Elsie Phelps
probably will be called today.
Rine Springs Surprise.
City Attorney Rine SDransr a sur
prise by announcing that a man
named Lowry, brother of Elsie
Phelps, was arrested Thursday and
denied bail from reliable persons and -was
refused counsel.
The chief of police was ordered to
bring J-owry before the council.
"If anybody is seeking to coerce
any witness this council should inves
tigate and know the truth," said At
torney Rine, who was loudly ap
plauded. "If the prisoner was refused a bond
we ought to know it," replied Baker,
Baker Warms Up
"Sit down," yelled somebody.
I he cowardly pup who told me
to sit down has not enohgh brains to .
sit in this room," replied Baker.
Chief Dunn said: "When this man
was arrested we did not know he had
anything to do wifh this case. This
ContlnuMl q Pare Fire, Column On.)
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