Omaha daily bee. (Omaha [Neb.]) 187?-1922, December 28, 1917, Image 1

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The Omaha Daily Bee
Fair; Cold
VOL. XLVII. NO. 166.
on Tram, it hms. CTrnT & nrr v Tivn nxrvrTC
n i (S m Ann
Favor General Peace Without Forcible Annexations or
Indemnities, But Will Not Bind Themselves to Such .
Terms Unless All Russia's Allies Will
Recognize and Carry Them Out.
Bjr AMMtated Frws.)
Virtual acceptance of the peace terms of"ejed by Russia
vcs made by the central powers in a statement issued to the
peace conference Tuesday by Count Czernin, the Austro-Hun-garian
foreign, minister, provided Russia's allies also recognize
them and carry them out honestly toward the central powers.
Peace without forcible annexations
and indemnities is agreeable to the
central powers and they will con
clude a general peace immediately on
conditions equally just to all the bel
ligerents. The return of Germany's
lost colonies is made an essential part
of the German conditions.
The United States and the entente
allies up to this time have not rec
ognized the Bolsheviki government or
agreed to the terms Russia proffered
at the beginning of the Brest-Litovsk
Will Sign Terms.
Petrograd, Wednesday, Dec. 26.
The central powers. Count Czernin,
the Austro-Hungarian foreign minis
ter, told the peace- conference 'at
Brest-Litovsk yesterday solemnly de
clares their resolve immediately to
sign terms which will terminate the
war on conditions equally just to all
belligerents. The central powers also
favor a general peace without forcible
annexations and indemnities. They
could not bind themselves: to such
terms without a guarantee-that Rus- . , .....
sia's allies woia4ecopnz-ttenTrt1&t-ufc-wJ- facikt,cs
cavy them out honestly toward tte
central powers. : i
: Basic Terms of Peace.
Count Czernin declared that the
central powers believed that the basic
principles uttered by the Russian dele
gates could be the basis of such a
peace. He said they shared Russia's
condemnation of a continuation of
the war for the sake of conquest.
It is necessary to indicate most
clearly, however, the count added, that
the Russian proposals could be real
ized only in the event that all bel
ligerents obligated themselves to ad
here: to the terms of such a peace.
The Austro-Hungarian foreign min
ister declared that the central powers
did not intend to forcibly annex ter
ritories seized during the war nor
to deprive nations of political indc
pendence lost in the war.
The question of the subjection of
nationalities who have not political
independence to another country can
not be solved internationally and must
be met by each government and its
people in the manner established by
the constitution of that government.
The protection of the right of minor
ities is an essential part of the right
of peoples , to self-definition.
In the eveftt of a mutual refusal to
meet war expenditures and py dam
ages caused by the war. Count Czer
nin continued, each belligerent shall
bear only the expense of its subjects
made prisoner and damages caused
to property 6f civilian subjects by de
liberate violations of international law
on the part of the adversary. The
creation of a special fund for this pur
pose, as suggested by Russia, could
be discussed only in the event that
(Continued on Pace Two, Column Two.)
the Weather
I'qt Nebraska Fair nd continued cold.
Tempers tares at Omaha Yesterday.
6 a. m.
i a. m.
7 a. m.
8 a. m.
9 a. m.
.. 26
. . S6
10 a. m 14
11 a. m 12
12 m... 10
1 pm 10
2 p. m... 10
3 p. m 7
4 p. m 4
I p. m 2
6 p. m 1
7 p. m 1
8 p. m r.. 0
Comparative Loral Record.
117. 1916. 115. 1914.
Highest yesterday .. 26 24 2J 22
Lowest yesterday ..0 6 10 5
Mean temperature .. 13 16 IS 14
Freclpttatlon 00 .00 .00 T
Temperature and precipitation departures
from the normal:
Normal temperature 23
Deficiency for the day 10
Total deficiency since March 1 409
Vormal precipitation 03 inch
Deficiency Tor the day 03 inch
Total rainfall since aMrch 1. .. .21.76 Inches
fx-flclency since March 1 7.38 inches
Deficiency for cor. period, 1916. .13.62 inches
Deficiency for cor. period. 1915.. 2.11 IncheaJ
Report from Stations at T P. M.
Station and State Temp. High- Rain
of Weather. 7 p
. T
Cheyenne, cloudy 44
Pavenport, cloudy 20
Denver, cloudy 36
Ies Moines, pt. cloudy 4
D(dr City, clear .... H
Lander, clear 4!
North Flaite, pt. cloudy 2
('ma hi, clear 1
I'ueb!n, part clrady... 42
Tiapid City, cloudy 10
Salt Lake City, cloudy 50
Santa Fe, clear 41
Sheridan, cloudy 6
s:iux City, cloudy 4
a!entlne. clody 10
T Indicates trace of precipitation,
r Indicates below zero.
m . .L. A. Jvt'ELEH, Meteorologist,
Shipments Now Will Go Over
Shortest and Most Convenient
Routes; Formerly Competi
tion Reduced Efficiency.
(By Aiwovlated Press.) '
Washington, Dec- 28. Under the
traffic pooling plan worked out by
Secretary McATloo as director gen
eral of railroads, freight will move
over the shortest and most convenient
routes regardles of the individual in-
will be pooled, this system can be
be pursued to an extreme limit, of
ficials pointed out today, without en
danfferinir the revenues of anv line.
Earnings will be pooled and paid out
oii the basis ot pre-war returns re
gardless of how much freight a rail
road actually moves.
Competition Loses Efficiency.
Railroad experts admit that there
is a great loss of efficiency in com
petition. Freight often is billed over
a particular line when .it miglij be
handled much more expeditiously
over another. A shipper has a right to
ship his freight as he pleases, but
tinder eovernmeut operation and traf
fic pooling it matters not which road lrotzkys object is to discredit tne
receives his freight. It will move over entente allied governments through
the line or lines best able to handle their representatives, and the meth
it. Two railroads running between ods he has adopted are calculated to
New York and Chicago, for instance, intensify the hostility of the Russian
miirht cross at some point in between, proletariat toward the allies, which
Under the ordinary system, freight
given to one road in New York would
proceed all the way over that line.
verted to the other road at the cros
sing point if the Qther road from the
crossing on to Chicago offered at the
tibe better facilities for moving.
Will Relieve Congestion.
While admitting that competition
slows up traffic in a situation such as
exists at present, railroad men point
to the fact that competition has
brought all the improvements in rail
road facilities such as the airbrake
and other devices. But during the
war, even they admit that the inven
tion of new appliances is far less im
portant than the moving of freight.
Under the government pooling
plan a railroad with its lines congest
ed will not be given more freight to
handle if it appears it may add to the
Interstate Commerce commission
officials will work closely with Secre
tary McAdoo on a comprehensive
operating plan. They believe a sys
tem will not be hard to devise and
that with a' skeleton plan outlined rail
road officials themselves can carry
out the details without a great deal
of trouble.
London, Dec. 27. Ukrainian forces,
according to a report received from
Petrograd, have occupied the head
quarters of the Fourth, Eighth and
Eleventh armies on the Roumanian
southwestern front. Those who re
sisted were disarmed and a quantity
of guns and rifles were seized. The
Ukrainians have occupied the station
at Brailoff and disarmed the guards.
A telegram received in Petrdgrad
from Tomsk reports fighting in Ir
kutsk, Siberia. Cossacks and military
cadets have engaged the garrison
there for two days with alternating
Paris, Dec. 27. Three attacks were
made by the Germans last night on
the Verdun front east of the Meuse,
it is announced officially. At their
third attempt the Germans succeeded
in reaching the French lines, but were
driven out immediately with heavy
losses, leaving prisoners.
Seek to Placate Political Op
ponents Who Have Ma
jority in Constituent
(By AHSoclnted Press.)
The Bolsheviki are taking measures
to placate their opponents. Seven
members of the social revolutionist
party, which has a majority of the
constituent assembly, have been ad
mitted to the council of national com
missioners, as the ruling body in Rus
sia is called. The Bolsheviki still re
tain 10 members in the council.
Allege American Plot.
London, Dec. 27. The Bolsheviki
newspapers continue to print revela
tions of an alleged American plot to
support General Kaledines, according
to a Petrograd dispatch to the Morn
ing Post, dated Tuesday. So far as
Ambassador Francis is concerned, the
dispatch adds, the whole ridiculous
charge falls to the ground before the
straightforward statement issued by
the American ambassador on Tues
day. Colonel Kolpashnikoff never ap
plied to the ambassador for any fund
for any purpose, although fully em
powered to draw as needed on the
Red Cross account, he being con
nected with the American Red Cross.
Leon Trotzky's charges against
Kolpashnikoff and American represen
tatives in Petrograd, the correspon
dent adds,' amount to a series of sup
positions, unsupported by evidence of
any kind. The correspondent says
that Colonel Kolpashnikoff assisted
the officials in Halifax in examining
Trotzky when he and Trotzky were
traveling to Russia together, and
Trotzky's Personal Hatred.
"The matter thus comes down to
the personal element, which plays so
large a part in what is called politics
in Russia today."
Colonel Kolpashnikoff, the corre
spondent says, is still in prison and
has not been seen by any American
It is plain, according to the cor
respondent of the Post, that in some
small bits of friction between the
respective American missions in Rou
mania and Russia, Trotzky found a
peg on which to hang a series of base
less charges against Ambassador
r-rancis and the American nation
German agents always have fostered,
I ,
Audubon, la., Dec. 27. After
months of friction between citizens,
members of the county Council of
Defense and pro-Germans of this
community, late yesterday a sensa
tional attack was made upon Rev. W.
A. Starck and Fred Tenekheig, both
of whom had ropes placed around
their necks and were all but lynched
by the parents of boys who have
gone to war and who have become in
furiated by the continued unpatriotic
actions of certain citizens.
This followed a public meeting, at
which Doth men refused to be sub
ject to the Council of Defense.
Tenekheig, 30, single, and said to be
worth $45,000, had done little for the
war, and Rev. Mr. Starck has been
before the Council of Defense re
peatedly for alleged treasonable acts.
Both men at different periods of the
late afternoon had ropes placed about
j their necks and Tenekheig was
: dragged nearly a block to the public
j square, where he was released more
! dead than alive and where he signed
i a check, for $1,000 for the Red Cross.
Starck s escape from lynching was
due to his wife, who ran screaming
to the spot where they had led him.
and as she fell fainting to the ground
the men turned their attention to her
and later let Starck free on condition
that he and his family leave the com
munity at once. He left within an
Officials Seize Sugar That
Was to Be Given Away
Paterson, X. J Dec. 27. Three
hundred and seventy-five pounds of
sugar which were to be given away
free last night to the patrons of a
local theater are now in the poses
sion of the federal food administra
tion, and D. Nochinsohn, a wholesale
grocer, must go before the United
States commissioner in Jersey City
to answrr a charge of hoarding the
commodity. When the theater ad
vertised that it would give .the sugar
away last night, an agent of the food
administration seized it and served
the grocer with a summons after be
ing informed that the suear had been
( purchased from Nochinsohn.
Your Uncle Samuel's New Role
Frank W. Bartos' Alleged Ac
tivities Before Exemption
Boards ' Investigated by
Representatives of U. S.
Frank W. Bartos, former state sen
ator and senior member of Bartos &
Bartos, lawyers, Wilber, Neb., was in
vestigated recently by a government
board because of his activities before
the various exemption boards and the
big fees he charged.
The first intimation that Bartos wag
making money out of his activities on
behalf of drafted men was received
when a Wilber farmer came into the
exemption board rooms at Lincoln and
stated Bartos had made out exemption
papers for him and charged him $250.
He had offered the attorney $25, which
was refused, he said. L. B. Frye, of
the appellate board, advised the far
mer to offer Bartos $5. That was the
last heard of the case.
E. M. Pollard, of the appellate
board, said information had come to
it that Bartos was charging exorbi
tant fees.
Fictum Case Cited.
Another case cited by the critves of
Bartos is that of Eman Fictum. a son
of a wealthy farmer who had neglected
to register. Information of this came
to the government, but before any ac
tion could be taken, Bartos made a
trip to Lincoln and asked the governor
ioi: permission to let Fictum register.
There was no necessity for this, as the
law allowed the young man to register.
But his registering did not exempt
him from arrest, and he is now await
ing a hearing. According to a story
circulated in Saline county, Bartos
charged Fictum $1,500 for his services.
Fictum says he paid $250 and expects
to pay more.
Another case is in connection with
the son of H. D. Damkroger, presi
dent of the Farmers and Merchants
bank of DeWitt. The son was drafted.
(Continued on I'a-e Two, Column Mx.)
Girls Supplant Boys
At Burlington Offices
At Burlington headquarters girls
have taken the place of boys as
messengers, not because they are
considered more efficient, but be
cause boys cannot be found to do
the work. Boys who in the past
have been doing messenger service
have found other employment in
other lines of work at higher wages.
As a result, girls have been taken
on to run errands and perform gen
eral messenger duties,
Max, Her Hubby, Also Requires
a Cocktail Now and Then,
According to Testimony
in Court.
Gertrude Hoffmann would be sub
ject to grave danger and risk if de
prived of champagne.
Max Hoffmann, her Adonis-like
husband, might collapse if he could
not have a nip of martini now and
This information was brought out
in municipal court before Judges
Holmes and Baldwin at the hearing
of cases filed by Prosecutor McGuire
against members of the Hoffmann
company and Skects Gallagher, an
other Orpheum performer who hap
pened to be on the same train when
the Hoffmann company's baggage
was raided last Sunday morning at
Union depot.
Rule Car Is Home,
The court dismissed the case
against Max Hoffmann on the
grounds that the car on which he ar
rived from Kansas City was his pri
vate car, and, therefore, was his
home within the meaning of the Ne
braska prohibitory law.
Mr. Gallagher was fined $100 and
costs, as the evidence showed that he
brought four quarts of intoxicants to
Omaha for the purpose of cheering
his aged mother on Christmas day. He
admitted those circumstances, but the
court held that sentiment should not
contravene the law.
Six bottles of champagne and one
bottle of martini were found in the
personal effects of Gertrude and Max
Hoffmann. Gertie was not required to
appear in court. On behalf of his
wife Mr. Hoffmann offered in evidence
the fo'lowing telegram received in
the morning from a New York City
physician of the famous disciple of
Says Necessary Stimulant.
"I prescribe champagne for Ger
trude Hoffmann, one glass after each
.(Continued on Pma Two, Column rive.) .
Attorney General Reed
Appeals Omaha Strike Case
Lincoln, Neb., Dec. 27. (Special.)
Attorney General Reel has ap
pealed the Omaha ftrke injunction
case, lie seeks to have all unipns
included in a permanent injunction
against Omaha labor organizations.
Only the teamsters were named in
the permanent order issued by Judge
Leslie several weeks ago.
Enormous Salaries of Rail Managers to be Cut and Wages
to Workers Increased; Government Will Sell
Bonds to Buy New Equipment and Guaran
tee Earnings of AH Properties Taken.
(By Asaodatad Trr.)
Washington, Dec. 27. Order No. 1, to be issued shortly by
Director General of Railroad McAdoo, will provide for the
pooling of all traffic and facilities, the common use of terminals,
tracks and equipment, the hauling of freight by the shortest
route regardless of billing or routing, and the retention of all
present officers and employes of railroads.
One effect of this order will be to give a number of rail
roads terminal facilities which they do not now have in hi?
cities. The Baltimore & Ohio probably will enter New York
City at the Pennsylvania station.
Heads of the four railroad brotherhoods conferred with President Wil
son for an hour and a half late today, discussing in detail the part of the
employes will play under government operation. A. B. Garretson, of the
conductors, said afterwards that wage increases were not mentioned.
Mr. Garretson added that the brotherhools were behind the government
operation plan nad the president had krywn it for two weeks.
One of the first acts of the government in beginning operation of rail
roads will be to reduce Urge salaries now being paldto the railway executives
and increase in some measure the wages of the railway workers.
Securities to be issued while the government is in control will be at In
terest rates not less than 4 per cent and the issues will be made under joint
authority of the director general and the Interstate Commerce commisson.
President Wilson, when he outlines the government's plans in the forth
coming address to congress, will ask that the government be empowered to
buy any quantity of new railroad securities. All earnings over and above an
amount to be agreed upon will go to the government.
Congress will be asked also to appropriate a large fund probably $200,
000,000 for the immediate supply of rolling stock to handle the flood of traffic
which has swamped the roads.
The director general will have authority to decide whether the govern
ment shall also assume operation and control of the express companies.
President Wilson will recommend to congress that the railroads be guar
anteed the average net income of the three years ending June 30, 1917, but
any railroad may abide by its constitutional right and refuse to accept this
: basis of compensation. In that case the question will pass to an arbitrating
body, the precise nature of which is to be determined by congress.
The equipment fund will also be used to pay any deficit of earnings this
year under the pre-war average or the amount agreed upon, but officials who
have given the situation close study believe it may be unnecessary to ex
pend any great sum in this way. They believe that the government by elimi
nating wasteful competition and unnecessary expenses under a common con
trol, can save hundreds of millions of dollars. Some officials even estimate
that the saving will be a billion dollars a year and that the government will be
able to garner revenue from the government operation plan in addition to in
suring railroad securities holders against loss.
(S To Help Weak Lines.
Washington, Dec. 27. Prelimin
aries for actual taking over of the
railroads by the government at noon
tomorrow moved forward swiftly
today and overshadowed all other war
activities in the capital.
Although approved by the great
majority of railroad men, there was
some disposition toward criticism in
congress, principally on the ground
that the government proposed to al
low the railroads too much, but there
was no indication that the president's
plans would be seriously opposed and
everything was prepared for enacting
necessary laws quickly after he ex
plains the situation soon in an ad
dress to congress.
Many members of the house and
Senate predicted that the step was
only the beginning of government
operation and control and that it
would soon extend to telegraph and
t lephone lines, if not, indeed, to the
distribution of life's necessaries.
The Interstate Commerce commit
tees in congress began a survey of
the legislation they will prepare to
carry the president's plans into effect.
The criticism in congress was heard
from the lepublican side. Senator
Cummins, in a statement declaring his
doubt that the president had author
ity, thought it would have been wiser
to wait for legislation by congress.
Senator Weeks, also a republican,
declared the president had ample
authority and added that while it was
of no effect to criticise, the question
might well arise as to whether the se
lection of Secretary McAdoo was a
good one.
Acting Republican Leader Gillette,
of the house, also assailed the selec
tion of McAdoo.
"1 think it proper," said he, "to ex
press my regret that this great ap
pointment has not been a less part
isan one and was not givtn to one
whose experience and impartiality
would insure more confidence,"
Although in most cases earned
dividends exceeding the guarantee will
revert to the government, congress
will he asked to make some' provision
(or railroads whose pre-war earnings
were abnormally low, by authorizing
the payment of dividends in excess of
those amounts on approval of the In
terstate Commerce commission.
Railroads will continue to provide
for their own issues of securities, but
will be compelled to obtain the ap
proval of the director general before
going to the Interstate Commerce
commission for final sanction. The
commission will pass upon the size of
the issue and the director general will
determine the interest rate, which
could not be less than 4 per cent un
der the proposed plan.
Work for McAdoo.
In his dual position of secretary of
the treasury and director general of
railroads Mr. McAdoo would be in
the best position to pass on questions
of securities interest rates. It also
would be his duty to determine when
the government should purchase new
securities issued under his approval,
and this plan would prevent the rail
securities from interfering with future
issues of Liberty bonds without neces
sitating actual government financing
of the railroads.
The legislation which will be recom
mended to congress would specify that
the roads would remain subject to all
existing: laws and regulations of the
Interstate Commerce commission.
Those who have given careful thought
to the situation believe the director
general will not modify the existing
order radically at first, but eventually
will ro far toward centralizing author
ity under the federal government
State Commissions.
The Association of State Railroad
Commissioners will give full support
to the new plan so long as its func
tions are not reduced materially but
it is expected to protest against being
deprived of adjusting minor questions
of rates and rules within its terri
tories. Until Mr. McAdoo outlines his
plans the status of express companies
under government operation of rail
roads will not be fully determined,
Naturally they will be under very
(Continued on r( Two, Column !".) .