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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (March 20, 1918)
VOL. XLVII NO. 236.
OMAHA, WEDNESDAY MORNING, MARCH 20, 1918 FOURTEEN PAGES.
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MURPHY, CHIEF WITNESS,
ADMITS BIG FOUR SPLIT
Packers Had An Agreement, According to Letters Read
By Prosecutor, That Allowed Each Company to Buy
a Certain Percentage of Live Stock
and Divide Profits.
"Mike" Murphy, general superintendent of the Cudahy
Packing company's plant, South Omaha, was the principal wit
ness to appear at the packing house investigation held yester-J
day in the federal building by Francis J. Heney, counsel for the
Federal Trade commission.
Murphy did not waste words in his replies and listened
with a what-is-coming-next expression while Heney read copies
of confidential letters written by E. A. Cudahy to Murphy from
Chicago. These letters were obtained by the government in
COMBINE ON HOGS. Q
Heney quizzed Murphy closely on
log buying, disclosing through corre
spondence an alleged arrangement
whereby the packers agreed to buy
hogs on & percentage basis, which was
not "lively competition" within the
purview of counser for the Federal
, TELLS OF PROFITS.
During the day Heney went into the
operations of the Union Stock Yards
;ompany as related to the packers, the
Dbvious purpose of this feature of the
investigation being to show that domi
' nation of yards by packers has. re
sulted in enormous profits which,
Heney said, he believed were derved
from the producers.
At the "close of the first day's in
vestigation; here T. F. Coad of Park-
" ers National bank, and L. M. Lord of
Live Stock. National bank, appeared
- to "testify regarding the 4ntere3t;of
the packets in these banking institu
tions.' 1 ' - ' ' '"
.D,unng his examination of General
Superintendent Murphy, Heney said:
"Wasn't there some talk in 1912 vhat
the Cudahy, Morris and S. & S. plants
would be consolidated and moved to
Council Bluffs?" , '
"They would not talk to me about
that. I am not that close to the
throne," Murphy replied.
"They might," Heney rejoined with
a smile. ' ' : . ' -
Heney Heads Letter.
Then Heney read a letter written
from the Cudahy office in Chicago to
Murphy, part of which was as follows:
"I hesitated about going to the Stock
Yards company for a bonus, because
I think the policy of the yards con
trolled is by Armour & Co., and, of
course they understand the situation.
,and you can't get anything out of
them by force. I could never see
;ur way clear so that we could force
i bonus. To start a new stockyard
and build an entire plan is almost
too big a proposition to undertake
alone: still, if we could get another
like S. & S. and Morris to go in
with us, I would be very glad to
undertake the establishment of a
market in Council Bluffs or some
where on that side of .the river. I
wouldn't figure on taking any small
amount from the Stock- Yards com
pany; if we can get anything, we
:an probably get a nice-sized bonus,
'f the government men want to know
(Continued on Page Two, Column One.)
For Nebraska Partly
Temperatures at Omaha Yesterday,
Comparative Loral Jtecord.
Highest yesterday ....74 53 41 - 33
Lowest yesterday ....45 3 30 23
Mean temperature ....60 43 40 2s
Preclpltatloji ,00 .00 .00 .02
Temperature and precipitation depar
tures xrom ins normal:
-Vormal temperature , 38
Excess for the day ,A 22
Total excess since March 1.. 193
N'ormal precipitation .04 inch
Deficiency for the day .04 Inch
Total precipitation since March 1.. .11 inch
Deficiency sine? March 1 (S3 Incn
Excess for cor. period, 1917 55 inch
'deficiency for .cor. period, 1916 .66 inch
Reports From Stations at 7 P. M. '
Station and State Temp. HiBh- Rain.
10 a. m 5S
i HlJ-yM: 2 P. m 71
lgfcSSJ 3 p. m 72
S 7 p. m.';.".'.'i.'.'.'.'9
of weather. 7 p. m. est. fall.
4 rheyenne, cloudy (4 55 ,00
Davenport,' clear 62 7I .00
3enver, cloud (3 ' 66 .00
Des Moines, clear ,..... 79 .00
Dodge City, clear 6 74 .00
f-andpr, cloudy 4S 68 .00
North Platte, clear ....70 7$ .09
Omaha, part cloudy ..69 74 .on
Pueblo, cloudy til 74 .01
apid City, rain 64 52 T
Salt Lake City, cloudy ..60 62 ... .1
fanta re, cloudy 54 GO ' .00
Sheridan, cloudy 44 ' 62 . .,0'l
Slnux City, cloaciy 68 78 .00
- Valentine, cloudy 511 68 .00
indicates trace of precipitation, x
U A. WELSH, Meteorologist.
OUT IN PROBE
Features of the packing house
probe being held by the Fed
eral trade commission:
"Mike" Murphy testified that
he was "not close to the
throne;" also that he and R. C.
Howe, general manager for
Armour & Co., did not agree.
Heney read a letter from the
. Cudahy office in Chicago, indi
cating a willingness ' of the
Cudahys to accept a bonus from
the Stock Yards company in
lieu : of a proposed removal of
the plant to Council Bluffs. v ;
:i'Red"T Murphy- bought-' hogs
in a surreptitious "manner ' at
South Omaha, market-for Wil
son Brothers, who were not in
the alleged finy.; : '
No light was thrown on the
mystery of "Who was hiding
E. A. Cudihy was quoted in a
letter read by Heney as saying:
"You can't get anything out of
the Stock Yards company fy
In a letter, written at Lincoln
last November, Nelson M. Bar
rett, special agent for the fed
eral trade commission, wrote:
"The complaint in Nebraska is
that these earnings (of Union
Stock Yards ; company were
wrung from 'shippers in both
good and bad years by unjustifi
ably large charges for yardage
Attorney Henry read into the
record documents to show that
Armour, Cudahy, Swift and
Morris bought hogs on an
agreed percentage basis of 23,
30, 25 and 15 in the order
Henry read copies of fonfl
dential letters written by E. A.
Cudahy of Chicago to General
Superintendent Murphy of the
Cudahy plant at South Omaha.
Referring to finances of the
Union Stock Yards company
Mr. Heney remarked: "There
has been added an extra million
to capital, all water or increased
Heney offered statistics to
show that of $7,500,000 capital
stock of the Union Stock Yards
company of Omaha, nearly $6,
000,000 had been given in the
form of bonuses or at 50 cents
on the dollar to packers.
"E.' Buckingham owes his po
sition, paying $10,000 a year, to
R. J. Dunham, who is con-'
fidential man for Armour &
Co.," said Heney.
Every Day Soon Will Be Beefless,
Declares Live Stock Feeders' Man
"If the United States is to provide
the boys in the trenches and our allies
with an ample supply of food, espe
cially meat, the probability is .that
within a short time beef must be elim
inated from the daily fare."
The foregoing is an assertion made
by Z. T. Leftwich, St. Paul, president
of the Nebraska Live Stock Feeders'
association, member of the State Live
Stock comnany and Howard county
delegate ot the Corn Selt Feeders'
association, as well as a member of
the National Food association.
Mr. Leftwich is in Omaha, on his
way home from Washington, where,
for three das, he was in conference
with Food Administrator Hoover. At
this conference he was accompanied
by Bert Cockerall, Papillion; Ed
Hickey, Greina; A. N. Mathers. Ger
ing; V. M Irley, Aurora and A. M.
Dunlavy, Bloomington, all mmhers of
the Corn Be t Feeders' association.
"Mind you. I don't sav that lhprp
Essey and Montsec Hit by Pro
jectiles From American
Guns; Allied Planes
With the American Army in
France, Monday, March 18. Ameri
can artillery on the Toul front today
bombarded towns vithin the enemy
On several occasions a considerable
number of gas shells were used.
, The gunners also dropped projec
tiles on German trenches. Some
shells hit in the town of Essey and
others in Montsec.
An American patrol between Ren
nieres wood and Jury wood (between
Seichepray and Flirey), encountered.
an 'enemy patrol early this morning.
For an hour and a half the American
patrol tried to make some of the
enemy prisoners, but without result,
although a number of fights with
pistols and rifles occurred as the Ger
mans retired, jumping from tree to
tree. American snipers made a num
ber of lucky shots today and, Germans
were seen to fall.
; Allies Bomb Metz.
The . American telephone wires
within the'Ahierican lines were tapped
again during the night, not far from
where the patrol encounter occurred.
The enemy artillery fired a number
of gas shells at our lines.
The weather last night nd today
was well suited for aerial work and
much was accomplished. American
anti-aircraft guns drove off at least
six enemy airplanes, while others
crossed the lines at such a height that
they were out of range.
Last night airplanes from the rear
of the American lines crossed iovef to
the German zone." Soon after many
explosions and flashes were- heard' and
seen in the direction of Metz.
American planes discovered during
the ' fiight that the Germans are
strengthening their second line. If is
known that the first line in many
places virtually has been abandoned.
It is believed that the accurate Ameri
can artillery fire has had something
to do with this.
HERE TO INSPECT
General Dade, head of the aviation
branch of service in the United States
army, arrived in Omaha from Wash
ington Tuesday morning on official
business, and is passing the day in
specting the work at Fort Omaha.
General Dade and his staff break
fasted at the Hotel Fontenelle and
then went to Fort Omaha, where he
was shown about the big balloon
school by Colonel Nance, command
Make First Seizure of s
Alien Enemy Property
The first seizure f alien enemy
property in Omaha under the alien
enemy act, was made yesterday. It
consisted ot the property at 1419
Farnam street, occupied by the
Drexel Shoe company.
The seizure came about when the
occupants made a -report, to Wash
ington, i v
The'property is owned by the heirs
of the late Frederick "O. Dohle, who
are supposed to be living in Germany.
Dohle died in Omaha some years
The shoe company has already put
on deposit $5,000 iu rent in the Mer
chants' National bank since it be
came impossible to pay the rent to
the owners. This also was seized and
will be held together with future
rentals until. the close of the war.
is an absolute certainty of a beefless
period,' continued Leftwich, "but
things point that way. At the con
ference there were present, In addi
tion to those from Nebraska, dele
gates from Illinois, . Iowa, , Kansas
and Missouri. They1 all represented
the stock interests of these states and
the opinion seemed to be, after we
had gone over, the entire meat situa
tion,, that a beettss period is neces
sary if we are to keep on feeding the
boys in the trenches and our allies.
"It was agreed that the supply of
beef on the hoof is growing less, es
pecially the smaller animals that here
tofore seemed to be preferable for
slaughter for the army and the allies.
"There is a pretty fair supply of
heavy beef, but there is no money in
this for the feeders at the present
prices. Corn has been so high that
if the beef was sold now, the feeders
would lose money. As a Result of-this
situation, 1 am looking for hiKhcr
prices for becf."
DUTCH ACCEPT ALLIED
Compelled to Agree to U. S.
Ask Snpply of Coal for Ships Carrying Merch- .
andise to Holland and in Transporta-
, tion of War Materials.1 1
New York, March 19. With armed guards from the naval
reserve on board the 40 Dutch ships in New 'York harbor, all
was in readiness today for formal word from Washington au?
thorizing the actual transfer of control of the ships.
CAN GO NO TTITRTHF.P 9
The Hague, Monday, March 18.
Holland has accepted, with certain
conditions, the Anglo-American de
mand regarding Dutch shipping.
This was announced in the second
chamber today, by Dr. Loudon, the
He added that Holland could not go
further and was awaiting the Anglo
American reply to its latest communi
cation. The minister's declaration,
which will be discussed in the Cham
ber Tuesday, said:
COMPELLED TO ACCEPT.
"The German government, having
declared its inability to furnish 100,
000 tons of wheat in two months,
the Dutch government finds itself
compelled- to accept the demand for
sailing Dutch ships through the dan
ger zone which the American and
British governments have attached to
the delivery on April 15 of 100,000
tons of wheat."
Dr. Loudon added, however, that
the assent of the Dutch government
was based on conditions. Included
among these conditions .were the
claims that the allied, governments
should guarantee that no troops or
war materials be transported on the
ships and that vessels destroyed be
replaced by others after the war. An
other condition was that bunker coal
necessary for transporting merchan
dise to Holland ought to be furnished
New York, March 19. Apparently
through a misunderstanding one of
the Dutch ships in New York harbor,
the Samarinda, was boarded by offi
cers of the naval reserve today au!
its commander notified that they had
come to take possession of the ship in
the name of the American govern
The con.maiulcr was told .that the
American flag would fro up at noon
and that the officers and crew of the
ship would be given until midnight to
leave. The commander of the Sama
rinda feported the circumstances tT
the Kotterdam Lloyd, its owners, and
said he was. preparing to obry, when
shortly after noon he again reported,
saying that the naval officers had left
He said the naval oftkers had in-
formed him 'they had been instruclcd ,
to retunnto the navy yard and ,t hat '
the contemplated seizure had been
t m j w w -
Demand to Obtain Wheat;
MEAT HEAD HAS
ALIBI FOR PRICE
Washington, March 19. Joseph P.
Cotton, head of the food administra
tion's meat division, was given "a
hearing today by thc-senate agricul
He was called to reply to rs:ent
testimony before the committee that
his office advised packers to ;iold
down the prices paid live stock.
Mr. Cotton said that the on:v ac
tion by the food administration in
fixing the price of meats was at a
time when there was an excessive de
mand from the allied governments.
At that time, he. said, the administra
tion desired to keep down the price
of the kind of meat ordered by the
Roosevelt Will Address
Republicans at Portland
Augusta, Me., March 19. Doubt as
to whether his health would permit
him to address the state republican
convention at Portland on March 28.
wa set at rest today by Colonel
Theodore Roosevelt, who notified
Frank J. Hahn, chairman of the com
mittee, that he would be on hand as
French Sab Sunk.
Paris, March 19. The French sub
marine Diane, not -having been hesrd
from a loiip; time, is considered as
lost, it was officially announced today.
German Prisoners in Siberia v
Armed and Beyond All Control
London, March 19. A message to Reutcr's limited, from Tokio,
dated Saturday, states that the Japanese war minister, speaking in the
house of representatives, stated that there were 94,000 German prisoners
east of Lake' Baikal and 60,000 west of that point. Those in the east are
beyond control and are trying to get arms. . '
A thousand non-bolsheviki under General Semcnoff are opposing the
maximilists east of Lake Baikal. The entente allies may support General
Semcnoff, but his force is weak, while the maximilists are growing in
power and are obtaining arrrs and ammunition.
Should the German prisoners become organized and support the maxi
milists, a serious situation would be created.
WILL MASS GREAT
ARMIES AND WORK
Move, Backed By Reserves of All Countries Who Will Be
Overwhelmingly Concentrated at Selected Points
of Attack, to Carry Out Latest Weapon
Forged During Winter. '
By Associated Press. -t
Washington, March 19". The key to the 1918 riddle of the
western battle front is in the hands of the supreme war council
at Versailles. ' '
Decision as to the time and place of major offensive's by the "'
allies rests with that body.
It directly controls also, officials here believe, a newt
weapon forged during the winter with which to make effective
its plan of grand strategy. 1 -
O TO- POOL RESERVES. .
Degress From 15th to -32d
Will Be Conferred; 1,200
to Attend Banquet at Ca
thedral Thursday, .
Hundreds of Masons and candidates-are
in 'Omaha for the spring
Scottish Rite reunion, which is be
ing held this' week in the Scottish
ELMER J. BURKETT. '
Rite cathedral at. 20th and Douglas
At least, 1,200 Masons will attend
the big banquet, a the cathedral
Degrees from the 15th to the 18th
will be conferred tonight.
The 20th and 21st degrees will be
conferred Wednesday morning, the
24th to 29th Wednesday afternoon
and' the 30th Wednesday night in
Thursday morning the 31st will oe
conferred. - The 32nd will be con
ferred Thursday afternoon.
Elmer J. Burkett will preside at
the banquet Thursday night.
Reunions are also being held this
week in Lincoln"&nd Hastings.'
Among the prominent Masons who!
are attending the reunion in Unjaha
are ludec N. D. Ford of Broken
Bow, James Brooks of Stanton and
John Finch of Arnold. '
New Member Reighstag.
Stockhold, Saturday, March 16. In
an election held in the Niederbarnim
district in northern and eastern Ber
lin, for the i-urpose of filling the
Reicljslag ieat made vacant by the
death of Arti ur Stadthagen, socialist,
the majority socialist candidate, Herr
Wisscll, defeated the independent can
didate, Tony Breitschidt, by a vote of
23,594 again- 15,809.
Thatweapon is believed olie In s
pooling of the army reserves of all the
allies', armies, permitting overwhelm
ing concentrations at selected points
of attack. . '
American observers now are con
vinced that the German high com
mand plans a defensive campaign, and
that the long talked of drive on Paris
or the channel porta has been aban
doned. The initiative, according to
this view, rests with the allied and
American forces. Communiques are
being closely scanned for the first in-
dication'of any offensive operations
mapped out at Versailles.
, WILSON URGED ACTION.
. The supreme-council was created
under the urgent insistence of Presi
dent Wilson for aggressive action hi -year,
based on toordinated plans and
undet the-direction of single agency,
Tile exact scope of the council's ?u
thority never has been disclosed t ,
was said both by Premier Lloyd
George and by Lord Curzon, how- ,
ever, in explaining the status of the '
British imperial general staff, and the
commander in the field, Sir Douglas
Haig, that certain British forces had
been assigned, to ; the . council's con
trol. Decision by -tile war council, of
ficers here believe, .as to the, field
where these and similar, forces frpm
other armies are to be jcoficentra-ed
will show where allied blows at the
German defenses are designed to tall.
If there is to be no German drive,
as the' War department predicted yes
terday in its weekly war review the
council will not be forced to hold its
reserves for defensive purposes, and
can devote this new agency to at
tempts to smash weak points in the
German line. '
i . i Italian Front Hottest. 1
Opinion as to the sectors orTering
the best opportunity for allied assaults
varies widely here. There is . sub
stantial agreement, however(that the
Italian front may in fact becomt the'
main theater of war this year. Attstro-
German" concentrations, and possible
offensives on that front, also noted by
the weekly war summary, may repre
sent Uhe recognition of this view by, -the
German high command.
- In any event, eveik though the su
preme council might have decided to
make the effort to .breakthrough in
Italy, it is believed the nrst moves
in the game would be played - in
France and Flanders. Drives with
all the appearance of being the real
(Continued on Pace Two, Column Four.)
MERGER OF OMAHA
EXPECTED ANY D A Y
Formal orders to consolidate all tht
city and passenger atyi ticket offices
of the Omaha-Chicago railroad lines .
in Omaha are expected from Wash
ington at any time. :
.William S. Basinger, general pas--scnger
agent of the Union Pacific
system, has been in. Washington three
weeks in conference with Director of
Traffic .Chambers, who has charge of
the matter. He was called to,, the
capital to give export advice on the
subject! and his report is said to 6e
in the hands of Mr. Chambers, await
ing the approval of Director General
It is known that Mr. Basinger lias ,
long favored merging the offices of
all lines and he is said, to have, etn- ,
bodied that recommendation in his re V
port. p .
The Northwestern has just closed
a new lease on its. present quarters.
The Milwaukee, Rock, Island and
Great Western have made new leases
at $100 per month on their quarters.
The Missouri Pacific-pays $500 a
month' for its offices under a lease
which still has several years to run,
and the Burlington : lines are under
a lease at $900 per month, which will'
not expirUf for seven years. The Wa
bash lease' has one year to run.''
All of these leases will have to b
disposed of or adjusted in some way
u the consolidation order is ued
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