Omaha daily bee. (Omaha [Neb.]) 187?-1922, February 06, 1918, Image 1

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    Daily Be
! .
On Train. H.Uli.
Nwi bttnti, I to.. M
o V - Q
Official John E. Elliott Accused of Falsifying financial
Statements; Case Filed at Instigation of Attorney
) General's Office; Methods Were Exposed
' by Articles in The Bee.
- John E. Elliott, Decatur, Neb., banker and ex-paperhanger
tnd painter, whose alleged methods of high finance were ex
posed by The Bee, now faces criminal charges of falsifying
bank statements and accepting deposits after he knew the
institution to be insolvent.
Charges involving three distinct
counts have been filed in district
U. S. Artillery Fire Breaks Up
Attempt-to Rusk First Line
Trenches With "Silent
, Raid."
court at Tekamah by County Attor
ney Herbert Rhoades of Burt county
at the instigation of the attorney gen
eral's office at Lincoln.
Elliott, cashier of the 'defunct
Farmers State Bank of Decatur, is
out on $1,000 bond.
-The total extent to which it is al
leged Cashier Elliott falsified his
statements is, $7,653.86.
Elliott is the man who was sud
denly graduated from the job of
painter and paper hanger four years
ftzo into that of cashier of a small
bank. At the end of one year of the,
management of the bank he an
nounced a 50 per cent dividend, and
on the strength of that got the stock
holders to buy more stock- and in
crease the capital from S15,000 to
525,000, while the cashier sported a
succession of new automobiles
throughout the year.
Declared He Was 111.
' When the stat hanking board
finally closed his doors and began to
find the accounts short Elliott retirccW
to his home at Decatur and declared
himself too il' to be seen.
It is charged in the case filed
xagainst Elliott T that in issuing the
statement of the bank's condition at
the close of business August 20 "1915,"
Elliott listed, as a part of the bank's
resources real estate other than ifs
banking house to the value of
$3,580.55,' while,',. in fact, the bank
owned' no real estate other than the
banking property.
It is alleged he represented bal
ances due the Farmers' State" bank
from other banks as $2,691.65, while,
in fact, there was due only $681.65.
Cash on hand, including checks and
items of 'exchange, the cashier is
charged with having represented as
totalling $4,535.92, while they totaled
only $2,585.61.
. Says Already Insolvent.
Cashier Elliott is charged with hav
ing accepted a deposit from OrvtUe
Richards of $832-on February 19, 1916,
hough he well knew at the time that
9 is bank was already insolvent.
The last count in the case charges
t;at on a certain day the cashier
burrowed certain funds of the bank
enntrarv to the form of thevstatute
For more than one and one-half
years after the bank was closed by
the state board, the authorities made
no move to arrest him and bring
charges against him. Attorney Gen
eral Willis Reed made numerous trips
to Decatur, and although he admitted
that there were grounds for a criminal
case against Elliott, he hesitated to
bring it. , ,
Arrested by Sheriff.
C Sheriff Ran Stanfield of JBurt coun
arrested Elliott some time ago,
after the case had been filed in the
county court, by County Attorney
Before Judge G. A. Ireland, El
and was bound over to the spring
term of district court.
Gustave H. Russe and Edgar A.
liott waived preliminary examination
(Continued on rage Two, lolumn fven.)
Man Serving 30-Year Sentence
in Colorado Penitentiary Con
fesses; Clears Up Old Mur
der Mystery.
Canon City, Colo., Feb. 5. Harry
Hartman, a convict serving cumula
tive sentences in the Colorado state
prison aggregating 30 years, con
fessed to Warden Thomas Tynan that
on October 20, 1912, he killed a boy
in the railroad yards -in Sioux City",
la., and buried the body in an ice
The confession, which was made to
the warden Sunday, was announced
Hartman told the warden, it was
announced, that two months al'ftr the
murder the boy's body was found in
the --sawdust-'-fat i-the ice - house,- where
he had buried it and that the crime
had remained a mystery in Sioux
Hartman was sentenced by Judge
Beta Lindsey in Denver on March 21,
1915, after conviction on several
counts of mistreatment of boys.
According to the confession, as an
nounced by Warden Tynan, Hartman
said he had enticed the boy into the
railroad yards at Sioux City and later
killed him.
(By Associated TresR.)
With the American Array In France,
Monday, Feb. 4. German plans to
raid the American trenches were
frustrated early this morning.
The American artillery put down a
heavy barrage in front of and on the
German lines, which are believed to
have been tilled with men and officers
awaiting ths signal of attack.
It was discovered at a certain hour
that the Germans intended to carry
out a "silent" raid.
Fifteen minutes before the time set
all the American guns concentrated
their fire where, according to the in
formation, the enemy was massed.
It is believed heavy casualties were
inflicted on the Germans.
There has been a general increase
in the artillery activity for the last
day or so all along the American
The Germans are still unable, to
occupy the first line trenches which
were caved in by tRe American artil
lery fire. They have now constructed
another line of trenches at that point.
American patrols have worked their
way over No Man's land and in
spected the damaged trenches as well
as they could.
Using Gas Shells.
The Germans are using gas shells
freely and endeavored to envelop one
of our battery position with gas, but
without success.
They have dropped a number of
shells in the roads behind the Amer
ican lines.
Two men were reported wounded
today by shells. The visibility re
mains bad.
Fuller reports from the first line
show that great courage was exhibited
by the troops during the heavy Ger
man bombardment'of.'SatUrday. - i-
Americans Are Wounded.
A number of men who were
wounded slightly by shell splinters
were treated in the lines withy their
first-aid packets and insisted on re
maining at their posts until the fight
was finished.
One man who was carried to a field
dressing station returned to his com
rades in the line after his wounds
had been attended to, and remained
' (Continued on Fbko Two, Column Fonr.)
Von Hindenburg
Saus He Will Be in
Paris April First
The Hague, Feb. 5. -Travelers
from Germany bring an account of
a recent conference at Berlin at
which Field Marshal von Hinden
burg received the editors of 30
German newspapers and discussed
the food situation with them.
The editors told Von Hjnden
burg that by next May therewould
be no food in Germany.
"My reply is," said the field
marshal, "that by next April I
shall be in Paris.
Army Waiting for Word From
Von Hindenburg;, Declare
Leaders; Teuton Press
Bureau at Work.
The Weather
Fair and Warmer.
Temperature at Omaha Yesterday.
Hour. Deft.
ti. -if ti I MI --
19 a. m 11
11 a. m -2
12 m 11
1 p. m 3"
. SS
It t::-:::::S
5 p. m..... 33
6 p. m 39
7 p. in 40
S d. m 40
Comparator Loral Record
. 1318 1917 1916 1915
SJwst ycaterday 40 2r, 9 31
,west yesterday, , ... 9 2 -4 15
Mean temperature ....24 14 2 23
Precipitation ..... 0 T. T. 05
Temperature and precipitation departures
from the normal:
Normal temperature 21
Excess for the day 3
Total deflrlency since March 1 774
Normal precipitation 04 inch,
Kxcess deficiency for the day .. .04 incll
Total precipitation since March 121.40 Inches
Pefici-ncy since March 1 7.57 inches
Deficiency for cor. period, ..19112.64 inches
Deficiency for cor. period, 1915 .. 0.47 Inches
Rtatioc and State Temp. High- Raln
of Weather. - 1p.m. est. fall.
Cheyenne, clear 3S 48 .00
Davenport, cloudy 28 28 ' .00
Denver, clear 4 60 .08
De Motnes, cloudy 34 34 .00
Dodge City, cloudy 6. . , , -00
'zander, clear ...,.4J' 48 ' .'00
North Platte, clear 44 r,4 .00
Omaha, cloudy 40 10 .00
Puebloi cloudy 56 tit .00
tapid City, ptly cldy 4 r4 .00
;tiicago cloudy 20 l' .01
ianta re. cloudy... 42, 4? t .00
ihurfdar, cloudy . 40 .00
V.oux City, clear 30 .00
."a lenttne, cloudy 4! 4 .T.
T ff!ScRt' trace of precipitation. ,
- - Indicates beiow zro.
" U A.. WALSH, JJeieOroivSiat
t . -t ' ,-- ;
- - ' ' : - - ? ' .
More Than Four Billions Loaned to Allies; liberty Loans
HavevFinanced Large Portion of War Expense;
Total is Less Than Original Official
Washington, Feb. 5.- Ten months of war have cost the
United States about $7,100,000,000 at the rate of $710,000,
000 a month, nearly $24,000,000 a day.
Of this sum $4,121,000,000 has been
paid as loans to the allies and the bal
ance, about $3,000,000,000, represents
America's outlay for its own war pur
poses, exc' isive of 'more than $600,
000,000 for ordinary governmental ex
The war's toll in money is increas
ing at the rate of more than $100.-
000,000 a month and indications now
are that the two remaining months
of the first year will run its war bill
to nearllv $10,000,000,000. of which $5,
000,000,000 will be foi allied loans and
about the same amount for the army,
navy, shipping board and other war
agencies. v
These figures compiled today show
that, although the country's expendi
tures are running into totals never be
fore dreamed of, they are below the
official estimates made early in the
war. '
Total Below Estimates.
Most of the war expenses , have
been incurred since July 1 and the
total outlay since then has been
$6.500,000,000, 'in a little more than
seven months, as compared with es
timates of $18,431,000,000 for the year.
Two factors 1 are held mainly re
sponsible for this difference. -
Officials of the War, Navy and
other departments originally figured
liberally dn their expenditures, to al
low a margin of financial safety.
In addition production of shins and
wa"rAstrpp!ies has failed to develop as
rapidly as had been planned.
Liberty Loans Pay Bills.
Government borrowings on the two
Liberty loans have paid for four
fifths of the war's cost and taxation
and a few minor ordirary government
receipts for about one-fifth.' i
The loan campaigns produced
$5,792,000,000 and $1,250,000,000 tame
direct troL. the pockets of the people
and will not have to be repaid. ,
Financial demands of the Avar in
the same way by another bond issue
and by taxes which will begin soon
to roll in from the first war tax act.
Before last April the monthly
operating expenses were about $75,
000,000 and the total annual expenses
reached only a little more than $1,
000,000,000. V
Monthly Expenditures.
Then came the war. In the first
month, May, 1917, expemes jumped
to $114,000 000: in June to $134,000,
000; in July to $208,000,000; in August
to $277,000,000; in September to $349,
000,000. By October the monthly outlay had
reached $462,000,000; November,
$512,000,000; December. $611,000,000;
and last month they were $715,000,
000. , "
In the first five days of February
the government has spent $150,000,
000. ,
These big sums do not include the
allied loans. They have averaged
$450,000,000 a month from the time
the United States entered the war.
Army Expenses Are Big.
Two-thirds of the $3,000,000,000 ex
pense for war purposes, in the last
10 months, has been for the army.
Up to December 1, the expense of
the army was $1,460,000,000. Since
then the total has increased to more
than $2,000,000,000.
The naval establishment has cost
$705,000,000 sinct the war began. "Up
to December 1 the actual outlay was
$513,000,000 and since then it is esti
mated about $192,000,000 has been ex
pended. The shipping board has fallen farth
est below its ' estimates, with pay
ments since last April for ship and
shipyard construction of a little more
than 1200,000,000.
Up to December 1 the govern
ment's shipping program had cost
only $123,000,000. but expenditures in
the last two months increased prob
ably by twice the former rate, and as
ships are completed faster in the near
future the shipping board's funds are
Federal Investigator Charges
Documents Will Prove Con
cern Guilty of Committing
a Felony.,
Chicago, Feb. 5. Francis J. Heney,
general counsel for the federal trade
commission, appeared before Federal
Judge Ker.esaw M. Landis today and
obtained an order to take possession
of certain papers in the offices of
Henry Veeder, attorney for Swift &
Co., wanted in connection with the
government investigation of the pack
ing industry.
The order directed the search of 'the
offices occupied by Veeder, charging
that "therein were letters, documents
and papers of Swift & Co." tending
to prove the commission of a felony.
iThe offense as charged in the per
titio for -ibc tearch" warrant Included
the allegation Jhat the packers had
sought to control supplies and had at
tempted to fix prices for meat, butter,
eggs, banned fruits and other edible
commodities. ,
False Entries Charged.
Another allegation was the com
plaint that false entries had been
made in books and records of Swift
& Co. which were subject to inspec
tion by the federal trade commission.
Conspiring with Armour, Cudahy,
Wilson and Morris packing interests
to arrange anlong themselves for bid
ding on contracts for furnishing the
United States government with mili
tary supplies, which included leather
as well as meats, was also charged.
United States Marshal Bradley im
mediately took possession of the Vee
der offices.
Mr. Heney accompanied a deputvj
united Mates marsnai to Air. veea
er's office, where Veeder insisted that
Judge Landis' order did not include
a small safe in the vault.
"This order permits me to go
through everything, with dynamite if
necessary," asserted the government
attorney. :
He sent for a locksmith and stated
that he would use force, if necessary
to get what he wanted.
While waiting for the locksmith,
Mr. Heney and his helper moved
about the vault at leisure. Reams of
letters were placed in a heap, and
there were many neat little packets
bound fn tape which Mr. Heney
placed aside for closer inspection.
Mr. Veeder retired to his private
office, leaving a clerk in the , vault.
It was a curious scene, electric with
the antagonism developed.
In the outer office visitors came and
went upaware of the unusual proceed
ings withi.i, where for the first time
in history a government representa
tive was penetrating what he con
sidered 'the very core of the inner
circle of .alleged packing house
Unlawful, Says Veeder.
"His proceedings are illegal," as
sorted Mr. Veeder.' "There is noth
ing important to the case in the little
safe, but I would not open it and
thus abet an illegal act."
"Quite a job, may take several
days," observed Mr. Heney, as his
eye roved over the great tiers of in
dexed files.
"Isn't that locksmith here yet?"
"Not yet," answered the clerk.
"Well, there is enough other work
to do, any way; we can wait."
Red Army Leader Placed
Under Arrest by Poles
Amsterdam, Feb. 5. A wireless
dispatch received at Berlin from Kiev,
says that the Poles have occupied
Mohilev, the Russian main headquar
ters and have arrested Ensign Kry
lenko, the commander-in-chief of the
Russian Bolshevik forces, and his
The message adds that the "Bol
shevik uprising at Kiev has been
suppressed by the Ukrainians.
(Uy AwMflattft Trnu.)
Amsterdam, Feb. 5. Advertisement
of what Germany is planning to do
on the western front before Ameri
can military power can be pat into
the conflict continues to be a con
spicuous feature of the German news
papers. "The next six months will be- the
deciding period," says the Frankfurter
"During that eminently important
period the central powers with abso
lute certainty will have the strategic
superiority, for the hopes of the en
tente fon American help cannot possi
bly be fulfilled within that time.
"The central powers will f concen
trate their whole strength on the west
front for a decisive blow.
.trench soil, whose fertile, flour
ishing fields already have suffered go
cruelly and have drunk .such rivers
.f LI..J t . . ' -
ui uiuuu, win ce tne scene ot a final
struggle which will far surpass the
fiercest struggles of the last year.
"If we do not share the light-heart-
etiness with which the problem of
American military help is often set
aside, we also consider it certain that
tne united States cannot in the n;xt
tew months increase the very great
moral and economic' support which
they .have given the allies"
All Eyea'or. West. v
The Deutche Tages Zeitung, in an
article declaring that all ey?s are now
focussed on the west, declares that
the greatest battle of the war is now
about to begin there.
"We must not allow the belief to
arise, however," it says, "that the in
crease in our strength in the west will
force the French to lay down their
arms or tle British to run away.
-"It may come tcr -.this, ti tourse,
and Hindenburg said a year ago, 'we
are already doing it. my children.'
uur- emperor, me supreme war
lord, has said that the decision is
not to be sought. Will to victory
and readiness for peace are combined
in his words, 'If the enemy does not
wish peace, we must bring peace to
the world b breaking in the gates
of those who do not want jrace, with
mailed fist and flashing sword.'"
Major von Olberg, head of the war
press bureau, writes in the official
(Continued on Pair Two, Column Three.)
Declares War Cabinet is AbsolAte Necessity; Claims
Thousands of Lives Have Been Lost by Lack of
Preparedness; Radical Action Required
if United States is to Win War.
Washington, Feb. 5. America's war-making machinery
was pictured as a "conglomeration of ambition and scattered
agencies, incapable of teamwork," in an address in the senate
today by Senator James W. Wadsworth of New York, repub
lican member of the military affairs committee.
Food Administrator Issues In
structions Placing Country
on Same Basis as
Washington, Feb. S.A two-ounce
bread ration was ordered by the food
administration oday for patrons of
hotels, restaurants and dining cars.
This allowance is about that now
observed in England.
Telegrams went out today to the
food administration's hotel represent
atives in every state designating the
new ration.
Two Ounces of Bread.
t Not more than two ounces of wheat
bread may be served to any one at
any one meal except when rolls or
bread made from corn, oatmeal,, of
bran, are served, and when only one
kind other than wheat bread i or?
hderrd'.'rtitfniorthliy 'cbn'sfst ;6f.Jf6or
ouncea. Kolls may not weigh more
than one Ounce each.
Public eat.'ng places are now licens
ed under tne new bread regulations
ana me oread ration ruie is issuea
under this authoritv.
Hole,! representatives have been in
structed to sen-that immediate obstr
vance is given in hotels for Monday
and Wednesda" as wheatless days.
Tuesday as a meatless day; Saturday
as a porklcss day and that there is
one wheatless meal and one meatless
meal every day.
viUYuiuimuni wak lumkul
Present Traffic Congestion Due to Desire to Misrepresent
Visdom of U. S. Operation, Declare Union Lead
ers In Wage Hearing; Hope to Influence
Public for Private Ownership.
(By Auoclated Preti.)
Washington, Feb. 5. Traffic congestion throughout the
country was blamed on the railroad managements today at the
railroad wage hearing By union leaders, who said the manage
ments desire to discredit the operation of the eight-hour law
and more lately to make government operation of the roads a
W. G. Lee, president of the Rail-O-
the next few months will be met in 1 expected to be depicted more rapidly
Allies Decide Not
To Appoint General
To Supreme Command
London, Feb. 5. Andrew Bonar
Law, government spokesman in the
$Iouse of Commons, today an
nounced that a generalissimo would
not be appointed, as a result of the
recent conference ot premiers and
gencraL; at Versailles.
way Trainmen, said he had evidence
that veteran railroad men were re
placed by inexperienced employes at
inportant gateways; tha engines had
been allowed to freeze up over night
and that train crews had been called
out and kept waiting until the 16
hour law overtook them before being
sent out of the terminal.
Asked by Chairman Lane of th".
railroad wage commission who was
responsible for these things, Mr. Lee
said he believed he could trace it
back to about four banks in New
York City, which control railroad fi
nancing, if he wished to seek the real
caiMe. i
"f have facts to prove that expe
rienced railroad men are not per
mitted to operate as their training
dictates." said Mr. Lee.
Oppose Federal Control.
"The old managements do not waut
government operation made a suc
cess," said Lee.
"Do you think the public will let
the railroads go back to the old sys
tem if government management
proves efficient?
"That's why f want to sec the gov
ernment make a success of operating
the railroads."
Mr. -iee's remarks were made in
the course of a spirited discussion
precipitated by the presence of sev
eral representatives of railway man-
agements in the room.
h". B. Garretson, head of the rail
way conductors, charged their pres
ence was in contravention of the un
derstanding with Director General
McAdoo that the hearing was to be
ex parte. ,
Lec Is Suspicious.
Commissioner Covington said the
tion of the Wage commission tb sup
plement, not antagonize, the infor
mation presented by the employes.
"You avill pardon my being stts
picjous,' Mr. Lee said, "but f have
been 'dealing with those gentlemen
for a half century."
Secretary Lane, chaifluaii of the
commission, reminded the union rep
resentatives that the railroads were
under government control, that the
comtnisssion wa seeking all informa
tion to make a decision, and that
there was no controversy nor could
there beSune so far as the govern
ment was concerned.
"We do not pretend to take the
position of discussing matters with
our former employers," said Mr.
Garretson. "We don't intend to deal
with a second set of employers and
having come here to put all the cards
on the table; we don't intend to dis
arm ourselves "
A. B. Garretson, head of the cdn
ductors, also charged that railroad
managements were trying to dis
credit government operation.
"Do you mean that the operating
officials made the increased costs
greater than they should have been?"
Chairman Lane asked.
"Yes, that was natural; they desired
to cast reflcticns on the law," Lee re
plied. ' y . "
"I do not think it was natural. I
have not so cynical a view ol human
nature," returned the chairman.
"We are prepared to show many
instances of rotten railroading," the
union leader replied. v
"On a railroad not far from here
I know of .. crew that was called out
and the 16-hour law overtook them
before they left the terminal.
The operating employes cannot
Column Four.) ,
J railway were there by in vita-j (Continued outface Thi
The speech renewed the debate over
war efficiency which occupied the
senate all day yesterday after Senator
Hitchcock of Nebraska, a democratic
committeeman, had delivered a simi
lar airaignment ofhe lack of co-or-dination
in the government's ac
tivities. V
Without detailing army conditions
revealed by the military committee's
war inquiry with which he said the'
country is now fairly familiar,'.. Sena
tor Wadsworth confine- himself ' ,
largely to an argument for the pro
posed legislation for centralization
of ar making tgencies.
President Wilson cannot . co-ordinate
these agencies, he saiJ, and, with
a long war in prospect, radical steps
to uuify the nation s efforts are n
essary, , ,.. ' ; ' ,
tack of System, ; ;
"Tint great things have; been done; -cannot
be denied," he declared.
"That other great things have been
left undone must be admitted. "
"The credit for things accomplished s
can be assigned to several individuals. .
, ''The blame for shortcomings ought !
not to be laid upon any individual. '
"Criticism should be directed against
our system, or rather the, lack of co- V
hesive system."
Rccotinti-g the "Amenities arising v
through indisertiniuate orioritv order
-aTittrcompetitto-h ii the'purciilieTot
supplies, delays on account of depart
mental "red tape" and the absence of
power m the Council of National De
fense, the senator contiluedf
' "Mind you, I do not attempt to lay
the blame upon one man or any one
departmentr I insist that this pain
ful situation has resulted from an ut
ter lack of planning from a lack of
vision, " :;
"The plain fact is that we hav no
agency in our government today
charged with the duty of projecting 4 .
its visions ftfr into the future, antici- )
pating the' emergencies .which may
arise md laying the plans by which
we can meet and overcome them.
Powers of President.
"No one in his senses would prp
pose that any other office be created
to take away from the president the
powers the constitution confides to
him. "V"
"It cannot be done. It is unthink
able. .
"But there is no nlace in Washing
ton where the needs of the situation
and plans to meet them can be
(Contlnned on Pa( Two, Column Two.)
The fuel administration has estab
lished in the ast a list of preferential
consumers, whose demands for oil will
be granted precedence in distributing
the supply. -
Kailroads and ships using oil for
fuel head the priority list.
Washington, reb. i. government
control of the oil industry became ef
fective today under a proclamation of ,
President Wilson authorizing Mark L.
Requa, chief of the oil division of the
fuel ..ministration: to establisn r
licensing system for all manufacturers
or distributors whose gross sales art
in excess, of 100,000 barrels annually.
The proclamation does not extend
to gasoline or kerosene, but licenses in
these commodities probably will bt
required soon.' ' '
Time saved is money earned. We
will accept your want-ad over
the telephone, and at our new
cash, rate, the same rate and
courteous attention you re
ceive when calling at our of
fice. '
We maintain a service depart
ment trained to assist you in
preparing your copy. Call
Tyler 1000, place your want
ad. give this phone method a
, test, see how we SAVE YOUR
Why waste your time walking
your want-ads in when you "
can save time by talking them
in? t .
Try It v
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