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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (March 20, 1918)
Daily. Bee r THE WEATHER v Cloudy; Warmer VOL. XLVII NO. 236. OMAHA, WEDNESDAY MORNING, MARCH 20, 1918 FOURTEEN PAGES. 0 Tnlni. t Hotel. Niwi Standi. Etc., 6c. SINGLE COPY TWO CENTS. Omaha JovKU LiU ill jvJ U e W$M wwmMme, ' - . ' - O 1 1 ' n . .. MURPHY, CHIEF WITNESS, ADMITS BIG FOUR SPLIT TOTAL OF - 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 Chicago. 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 Trade commission. , 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.) The Weather For Nebraska Partly warmer. cloudy; 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. HOG RECEIPTS HIGH POINTS HENEY BRINGS 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 the hides?" 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 force." 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 and feed." 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 named. 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 inventory." 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 SAMMIES SHELL TOWNS WITHIN GERMAN LINES Essey and Montsec Hit by Pro jectiles From American Guns; Allied Planes Bomb Metz. With the American Army in France, Monday, March 18. Ameri can artillery on the Toul front today bombarded towns vithin the enemy lines. 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. AVIATION HEAD HERE TO INSPECT BALLOON SCHOOL 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 ant. 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 ago- . 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. -4- 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." Short and DUTCH ACCEPT ALLIED TONNAGEtJLtlMATUM ON DEFINITE CONDITIONS ; 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 BULLETIN. 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 foreign minister. 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 Dutci ships. Officers Overzealous. 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 ment. . 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 the ship. 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 postponed, i t m j w w - Speedy Demand to Obtain Wheat; MEAT HEAD HAS ALIBI FOR PRICE FIXING CHARGE Washington, March 19. Joseph P. Cotton, head of the food administra tion's meat division, was given "a hearing today by thc-senate agricul ture committee, 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 allies. , 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 scheduled. 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 OUTNEWTkCTICS 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. ' " I 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. . SCOTTISH RITE MASONS HOLDING SPRING REUNION 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 streets. At least, 1,200 Masons will attend the big banquet, a the cathedral Thursday night. 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 full form. 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 TICKET OFFICES 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 McAdoo. , 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 .-.'4L