Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (June 24, 1921)
Lbckwood Probe Shows Bonds Pay Investors Little Insurance Companies and Banks May Be Forced to Use Money to Aid Build ers in New York. New .York, June 2J. Through the medium of an exhaustive analysis of the investments of the principal life, fire, marine and casualty insurance companies of the United States as well as banks, trust companies and title companies, the Lockwood com mission disclosed that the income of 1,500 institutions was . 15 to 20 per cent greater from investment in real estate mortgages than from invest ments in stocks and bonds.' The meiribers of the commission said that the analysis laid the ground work for legislative proposals which would have as their object the com pelling of an increase in investments in real estate mortgages by fire in surance companies and other institu tions handling the money of the public. If such legislation is enacted, it was said, from this source alone there would be made available from $600,000,000 to $700,000,000 for hous ing purposes. At the same time the financial stability of the institutions would not be impaired, but would be increased. The Lockwood commission will meet in executive session tomorrow to discuss possible action in the case of Forrest F. Dryden, president of the Prudential Life Insurance com pany, who was adjudged m contempt of the commission four times in 40 minutes today for refusing to answer questions on the advice of R. V. Lindsbury, counsel to the company. A supreme court justice may be asked to punish Mr. Dryden or the case may be handed to a grand jury for action. Mr. Dryden's refusal to answer questions was incidental to attempts by Samuel Untermyer, counsel to the commission, to show that Mr. Dry den and his assistants have profited enormously through stock holdings in banks used as depositaries of the funds of the insurance company. Dawes Raps Congress In Discussing Budget (Continued From rage One.) him by the civil service commission. One might as, well be handed a toothpick with which to tunnel Pikes peak, Depends on Patriotism. , "I am the referee accepting the position as director of the budget only with the idea that the patriot ism of the bureau chiefs and the country as a whole can be so aroused jn this emergency that it will be met as was the emergency of war four years ago. Unless the bureau chiefs of the departments and the leading business men of the country respond to the call of the president, as they did four years ago, the situ ation is hopeless so far as any ma terial relief for two years is con cerned from this source." Mr. Dawes said he would organize his office at once with the help of his four personal appointees and then continued:,, "On or before August 1 I shall expect the department to invite a number of leading business men to come to Washington to serve with out compensation in an advisory capacity to the budget bureau. These gentlemen, when they arrive, will at first be assigned to the differ-; ent departments to advise and co operate with the respective budget officers thereof during the progress, of their work. Later, concurrently., they will advise with the director or the budget. "Outside men, of whatever com manding ability and prestige, can not go into, the vitals of government business administration in five months, unless the bureau chiefs co-operate to the last dgeree. In ad vance of my appeal to them col lectively, I predict from them not only co-operation but the initiation of suggestions for economies to the budget representative: It is not to my call that they will respond, but to that of the president of the United States, of congress and of the Amer ican people. Plea to Business Men. . "To these business men whom the president will call to join with him, with the cabinet, with the congres sional committee of reorganization, with the budget bureau, and above all, with the bureau chiefs in found ing the first great national budget, I have this to -say: -When the call came . to- me . to take this place I had the same abhorrence of the thought of leaving private life to engage in such a task as you have. Only the thought that if a declined the president's call in a time of bus iness emergency like this, I would regard myself as a pusillanimous quit, ter for the balance of my life, led me to accept. If there is one of you, who, after enjoying the benefits of great prosperity, success and pres tige under the protection of a gov ernment which you claim to love, declines to accept this call, except for reasons of life and death, your conscience will be cursed by the same conviction. However great the sacrifice, you will come. "The crisis which confronts us all, as business men, is as great as that .when the business community and all our people rose as one in support of the Liberty loans.. For the welfare of the nation, money had then to be spent; for its welfare now, it must be saved." Omaha , Girl Must Seek Relief From State Act Lincoln, June 23. (Special.) Eva V. McGowan, a pantry girl at the Omaha Athletic club, must depend on the workmen's compensation act to give her damages for an accident while in the employ of the club. The supreme court held today that she was not a "household servant," but was employed by a corporation and was obliged to seek relief through the workmen's compensa tion law. She sued the club for $25, 000 damages. She was injured when she struck her head in the runway of a dumb waiter and someone on the floor above let a pair of pincers drop and tr" the head, Weird Story Unfolded in Roosevelt Estate Suit . " Woman Victim of Confidence Game, in Which She Was Swindled of $68,000 Cash or Herself Party to Skillfully Laid Scheme to Get Money. Hillsdale, Ind., June 23. A strange story of an estate inherited and money strangely loaned out during the heat of the republican national convention in June, 1912, was related today by Mrs. Emma Richardson Burkett, who has filed a claim against the Theodore Roosevelt es tate for $69,900. Mrs. Burkett's story reveals that she was the victim of clever con fidence game men; that she really did have the money in cash and turned it over on a joint note signed by Roosevelt . and one Charles J. Shunson, or that she, herself, is a nartv to a skillfully laid scheme to obtain the amoun mentioned from the Roosevelt estate. Mrs. Burkett was reticent at first and refused to discuss the case, stating that Colonel Roosevelt at the time the loan was made had prom ised her there would be "no noter iety about it." . When informed that attorneys for the estate in New York had charac terized the colonel's signaturi a forgery she told such features of her side of the case as she wished to reveal. Tells Weird Story. Her story, pieced together and placed in chronological order, fol lows: "The alleged loan was made June 21, 1912. Early that spring, in February, she had received word of the death of a- wealthy uncle, Henry Richardson, who spent most of his life in the west. He was on his way to Alaska when he died. He had one daughter, an illegitimate child, named Mary Kenney. He left a will providing that Mrs. Burkett should take charge of his money, $69,000, and turn over the interest to Mary Kenney for a specified number of years, at the end of which time she, Mrs. .Burkett, was to receive the principal as her own. "This daughter was always a way tvard girl and for that reason her father disinherited her," said Mrs. Burkett. "I was the only one in the family who would take her in and aid her when she was in trouble and it was tor that reason that the money was left to me." "As the will provided she was to receive the interest on the money I naturally, wanted to see that it was Bankers of West Fight Debt Refunding Plans (cW liraed From Fas On.) interested in foreign trade and for eign financing and constantly en Hravorinc to shaoe governmental policies to further their business proj ects. Among the 20 bankers at the dinner in additional to Mr. Reynolds were the following from Chicago: Frank O. Wetmore, president of the First National; E. D. Hutbcrt, president of the Merchants Loan and Trust com pany; Tohn J. Mitchelr, chaitman (ft the Illinois Trust and Savings; Charles G. Dawes, chairman, and W. T. Abbott, vice president of the -Central Trust company of Illinois. Oma ha was represented by W, W. Head, president of the Omaha National; Kansas City by E. F. Swinney. prosi dent of the First National; St. Paul by George H. Price, chairman of the Merchants National; Minneapolis by John W. Barton, president of the Metropolian National. Heard Eastern Views. Having heard the views , of the eastern bankers at a White House dinner a few weeks ago, PresMent Harding invited the western finan ciers to Washington to give their advice on financial polices. The president asked their views on many. economic question, but most ot tne discussion revolved around foreign trade and financing. Mr. Reynolds took a strong posi tion in favor of American business first. Despite the many statements that America's prosperity depends on foreign trade, he pointed out that of our whole business foreign trade is only 7 per cent. The great question is whether we are to measure pur efforts at business , revival by the needs and demands of Europe or. by our own capacity considered in rela tion to our own interests. If we do rot do the best we can with' our own resources for . ourselves, he argued, we will do less than' is possible for Europe. Europe will not gain in the long run from the impairment of our resources or our capital. Export trade, he classed as more of a con sequence than a cause of American business activity. Must Help Selves. Mr. Reynolds went on to say that there is little use in trying to help Europe unless European countries and some more than others, seriously do something to help themselves. By that he meant particularly efforts to correct monetary standards. 'The remedies to be applied, he said, were fairly obvious stop printing paper money, higher taxes, unexampled economies, refunding of Internal debts, cutting down loans at central banks of issue, thereby promoting de flation; incidentally the impover ished countries of Europe must im port only absolute necessities. To do even this, they must brace up and restore'" their monetary standards otherwise their exchange position will continue weak and perhaps grow weaker. ' Trade revival and finarprosperity, he said, lies in the increase of busi ness in the domestic markets with a foreign trade . maintained along natural lines and developed in a natural way without the artificial stimulation of so-called long-term credits or quixotic efforts to finance insolvents. Mr. Reynolds said it was a fallacy to think the wartime movement of capital to foreign nations would aid in reviving business. Our ' fortunes are not so closely tied up with those of Europe that either continent will make progress by extending credits on which we can ttraw oniy inter est. Spending the proceeds of for eign loans in this countryWieans that we part, with capital golds which safely Invested. I consulted with James J. Peyton, a civil war veteran and an old friend of the family, He knew about the will and the money, which was in a safety deposit box in Danville." Will and Note in Bank. Both the will and the alleged note bearing Colonel Roosevelt's endorse ment, Mrs. Burkett stated, are in the Chemical National bank of New York City, which is acting as her representative in the matter. "It was while the convention was in progress,'! Mrs. Burkett said, "that I received a message from Judge Peyton that1 he had arranged for a loan and for mc to come to Chi- Jcago. There I met this man snun- son for the tirst time ineou'jre Ioosevclt was in the room at the time. I saw him sign the -note and I saw Shunson sign it. I didn't care much about who Shunson , was be cause Colonel Roosevelt was beyond question as to integrity, and I con sidered it a safe investment." "Are you sure it was Colonel Roosevelt and not some man pos ing as the former president?" she was asked. "I know Colonel Roosevelt too well for them to fool me that way," she snapped. - Shunson Pail Interest ' "Prevton died in the oldsoldiers home at Quincy and the last Mrs. Burkett heard of Shunson was in 1918, when he went to France on some errand, the nature of which she never has been able to ascertain. But Shunson. she says, paid her the interest on the loan; 7 per cent, up until 1917. , .'-v- --. "What arc you going to see Mrs. Longworth about?" she was asked, "Oh, J have talked with her be fore." . - ; ' , , .. . ' "Wftat did she say?" - "She said a-plenty,- but you had better ask her about it She told me she was like her father and that when she set her head on anything she usually got what she went after. 1 told her my father was born an the same day as Theodore Roose velt, October 7, and that I inhcuted the same characteristics." Mrs. Burkett also intimated'there had been some correspondence be tween her . and Mrs. Longworth about the matter, but refused to pro duce any letters. ' - " are paid with our own fund?., We have only bonds or "notes left. V . Bonds for Goods. He said it was immaterial whether the $100;000,000 loan to France were paid in gold or goods; in either case we have supplied capital. The same fallacy, he said, was '.plain- in the foreign trade financing cor- ooratvon. r a scnerne a umuu $1,000,000,000 worth 'fJ foreign v'seHtrf time and the expending cf con rurities on - the American' public in exchange for goods."V V Mr. Reynolds quoted statistics and estimates ' to show that since 1915, Europe had . received from the United States more capital advances than had been supplied to American railroads, industries and municipal ities combined. Of capital issues of $45,500,000,000 in their entirety, $10, 000,000,000 had gone to Europe. The United States never had, he said, produced enough capital forits own needs. The savings of the peo ple and corporation surpluses are tmlikrlv tn hft creat enoueh to meet domestic capital demands for many rears to come. Taxation is.aepiet- ing the resources and surpluses of the high income class which former ly had money to invest. Savings are not indefinitely elastic and wecan give capital to Europe only by deny ing our own development. The conclusion drawn by Mr. Reynolds was that our first duty is to look out for our 93 per cent of business which is domestic, and the 7 per cent which is foreign will take care of itself. White Plague Victim Is Nearly Cured By Faith Des Moines, la., June 23. (Special Telegram.) Ethel Zelner, who was brought here Sunday from Kinsel, N. D., almost dead of tuberculosis, walked unassisted into the meeting Wednesday night of the Pentecostal faith healers, who are in session at Chautauqua park. On Sunday she was prayed for b; the congregation, after Mrs. M B. Woodworth Etter had laid hands upon her as she lay on a stretcher apparently at the verge of- death. Several new sufferers were prayed for Wednesday night. Ralph Man hassa, 2720 High street, who has tried unavailingly to rid himself of what Mrs. Etter says is locomotor ataxia, sat in the altar chair and re ceived the laying on of hands. The Mannassa boy was treated by Evangelist Smithson at Council Bluffs a year ago. Expose Big Ring of Girl Burglars at Des Moines Des Moines, la., June 23. (Special Telegram.) A girl's confession here today exposed a ring of girl burglars, according to police. Miss Ethel Bennett, 20, small, pretty, vivacious, whose home is at 1212 Scott street, confessed that she and another girl robbed the home of Mrs. E. Fearis, 706 East Locust street, several weeks ago. according to police. Miss Bennett, when she was ar rested, gave officers the name of other girls who helped her in the robbery, it was said. A short time later Miss Nell Smith, 19 years old. of 614 Lyon street, was placed un der arrest, charged with burglary. Other girls will be taken into cus tody during the day, detectives said. Negro Messenger at the British Embassy Honored Washington, June 23. To Charles F. M. Brown, messenger for 35 years at the British embassy, has gone the distinction of being, according to official records, the only negro in the United States to receive the medal of the - Order of the British Empire. - .. . . Mr. Auckland Geddes. himself, pinned on the decoration, : THE BEE: OMAHA. FRIDAY, JUNE 24. 1921. Denby Frowns on Naval Tendency To Soviet Rule Two Officers Removed From Command Who Permitted Crews to Vote on Ship Policies. Washington, June 23. Secretary of the Navy Denby. who has served in the naval service and the marine crops, both as an enlisted man and an officer, and who is well acquaint ed with conditions among the en listed personnel, has set his face against a growing tendency to in troduce soviet methods in the navy. Two commanding officers, who had undertaken to permit crews of naval vessels to vote, in one case on questions of discipline, and, in the other, to determine where the ship should go, have been removed from command. Inquiries are being made with a view to ascertaining whether there are other instances of such proced ure, which Secretary Denby holds is subversive of military discipline. Captain Stearns Detached. One of the cases mentioned is that of Capt. Clark D. Stearns, who was detached from the command of the battleship Michigan for permit ting the enlisted men to form a committee to nass upon the dis ciplinary measures among members of the crew and to take other action which the then commander-in-chief of the Atlantic fleet. Admiral Henry B. Wilson, and Secretary Denby be lieved to be inimical to the best in terests of the service. ' . After his detachment Captain Stearns reported to Secretary Denby that he had put these measures into effect on a vessel he had commanded prior to being given command of the Michigan and that they had been approved by Joseph Daniels, then secretary of the navy. In view of this statement, Secre tary Denby will assign Captain Stearns to the command of another warship. Commander Must Rule, In detaching Captain Stearn3, Sec-i retary Denby took the position that the maintenance of discipline on a naval vessel must be exercised en tirely by the commanding officer and that it was contrary to the long established custom of the naval serv ice to- give the crew disciplinary au thority. In the other somewhat similar case, where the secretary detached En of ficer from command, the cr.-w was permitted to express its wishes by vote as to where the vessel snould be taken to go into dry dock. This gave the crew a chance to de termine the port which would afford the best chances for enjoyment ashore and, beyond the question of discipline involved, the Navy depart ment felt that it was highly, detri mental to the interests of the govern ment to let such personal considera tions rule in a matter that meant loss siderable public money. The name of tne commander ot this vessel and the name of the ves sel could not be ascertained today. The order of Captain Stearns, which brought about his detachment from command, was issued in May, while the Michigan was in Tangier sound. The gist of the order was the creation of a "ship's morale commit tee," to be elected by the crew. The committee, the order provided, was to consist of nine enlisted men elected by the deck force, including the artificers, special branch and commissary, branch, and nine enlist- ted men to be elected by the en neers force, including the electrical force. Four of the men elected were to be chief petty officers, four were to be petty officers and 10 were to be either petty officers or non-rated men. New Trial for Roberts. Lincoln, June 23. (Special.) The supreme ourt today ordered a re trial in the case of Ross Roberts, charged with having improper rela tions with Anna Clary, a minor. Both live in Red Willow county. Phoenix Hosiery- Men turn to PRAY'S as & matter course for the fulfillment of their hosiery needs.', . Pray's assortment of Phoenix Hosiery is always complete. Men's, - v Women's, . - Children's, . TWOSTOBESt (08 South Wth Street and 1008 Farnam Street. Tb Horns of Phoenix HosUry Member of Council At Grand Island Is Barring Carnival Lincoln, June 23. (Special.) The Brundage Carnival company, refused permission to show at Hastings as a result of a protest of certain wom en's organizations, appealed to the state railway commission today to help it out of difficulties facing it in an attempt to show at Grand Island. The advance agent for the com pany called the commission and told that body that the Grand Island city council had voted to permit it to show there, but one member cast a dissenting vote and this member, the agent said, owns a controlling inter est in the city light company. Balked in his attempt to keep the carnival away from Grand Island, he has issued an order to the light com pany to refuse "juice" for the shows, the agent declared, and he wants the commission to isue an order forcing the company to furnish electricity. Allied Debt Measure Introduced in Senate (Continued From Pnge One.) $192,601,297; Poland -$135,661,659; Czecho-SIovakia, $91,179,527; Serbia, $51,153,159; Roumania, $36,128,494; Austria, $24,055,708; Greece, $15,000, 000; Esthonia, $13,999,144; Cuba, $9, 025,500: Armenia, $11,959,917; Fin land. $8,281,926; Latvia, $5,132,286; Lithuania, $4,981,627; Hungary, $1, 685,835; Liberia, $26,000. Liberty Bond Advances. Advances under the Liberty bonds included: Great Britain, $4,166,318,358; France, $2,950,762,938; Italy, $1,648, 034,050: Belgium, $347,691,566; Rus sia $187,729,750; Czecho-SIovakia. $61,256,206; Serbia, $26,175,139; Rou mania. $23,205,819; Greece, $15,000, 000; Cuba, $9,025,500; Liberia, $26, 000. Surplus War Materials. Obligations received on account of sales of surplus war materials in cluded: France, $400,000,000; Poland, $59, 636,320: Belgium, $27,588,581; Ser bia, $24,978,020; Czecho-SIovakia, $20,621,994; Roumania, $12,922,675; Esthonia, $12,213,377; Lithuania, $4, 159,491; Latvia, $2,521,869; Russia, $406,982. Obligations held by the grain cor poration included: Poland. $24,353,590; Austria, $24,-055,708;-Armenia, $3,931,505; Czecho slovakia, $2,873,238; Hungary, $1, 685,635. Obligations received from the American relief administration in cluded: Poland. $51,671,741: Finland, $8.- 281,926; Armenia, $8,028,412; Czecho slovakia, $6,428,089; Latvia, $2,610, 417; Russia, $4,465,465; Esthonia, $1,- 7g5,767, and Lithuania, $822,1136. Continue to Protest Telephone Surcharge Lincoln. Tune 23. (Special.) Protests against the attempt of the Northwestern Telephone company to continue its 10 per cent surcharge continued to be received at the othce of the state railway commission to day. The Central City Commercial club is the latest organization to put res olutions on record holding that'with the fall in prices of materials and the attempt of all corporations to reduce wages it is no more than just that the continual clamor of the same corporations for higher rates should be discontinued. Bernstein of Omaha Is Granted Another Trial Lincoln, June 23. (Special.) Isa dore iernstein of Omaha, under sen tence to from 1 to 7 years in" state prison for receiving stolen property, will get a new trial. The supreme court held that a telephone conversa tion introduced as testimony against him was not sufficient for conviction. Omahans at Capital Washington, June 23. (Special.) Walter W. Head, president of the Omaha National bank, and John Barton are in V ashington tor sev eral days. ' ' 40c to $1.10 65c to $3.50 65c to $1.00 For Men, Women and Children. Men Gompers Denounces Publisher Hearst (Continued From Tat One.) ers engaged in the business of buy ing and selling in commerce live stock at a stock yard . The convention also urged. "gov ernmental information and non financial assistance to co-operative, municipal and other governmental slaughter houses, packing plants and warehouses." Committee Told to Act The executive council was in structed to take steps at once to se cure the prompt enactment of such, legislation. . A resolution designed to give en dorsement to bonds ef the state of North Dakota and to the nonpartisan league Was referred to the interna Wash Blouses for $2.95 Delightful styles, vest ef fects, long pointed collars and demure Peter Pan blouses. Either white or ecru voiles and batistes. Net Vestings Ecru and White New vestings, one has al ternate rows of shirring and a wide ruffle of lace, another combines shirred net with embroidered and joins the two by narrow Valenciennes. North Aisle Main Floor Sheer White Handkerchief Linens Favored for dainty, cool summer undergarments, as well as blouses and handkerchiefs. Several very fine qualities, 36 inches wide, $2 to $4.50 a yard. Linen Section r Underwear for Summer Stretton, Carter, Globe, Corwith and Kayser have contributed to our assort ment of knitted wear. Union suits, 69c to $5.' Vests from 50c to $1.75. ' Second Floor OTO 1 ?vS W meMicm. tional unions with recommendations for favorable action within the con stitutional limitations of those or ganizations. What was termed the "evergrow ing abuse of the injunction in labor disputes" was condemned by the con vention. All affiliated organizations were called up on the wage campaign for legislation relief. In support of the anti-injunction resolution, John P. Frey of the Molder' union, declared that there is "class distinction in the courts." He cited as an example a number of in junction cases against labor. Scores Massachusetts Court. He declared that IS years ago the Massachusetts supreme court was considered fair to organized labor, adding, "Now this court has become one of the most reactionary judicial bodies in the United States as far as labor is concerned" Similar sentiment was expressed Interesting Arrivals in The Apparel Sections Summer Dresses in Larger Sizes $25 to $15 There is often a scarcity of larger garments, so that these new wash frocks will be of inter est. A variety of fabrics in well chosen styles, sizes 38Vo to 46A The half size represents the extra width through the hips and waist.J Modestee, a Sport Skirt With Bloomers, $15 to $39.50 A clever innovation in white wash satin, in plaid wool, both of them with bloomers, which obviate the petticoat. This promises to be a satisfying solution of sport wear needs. GravurA section of the OMAhA BEE Vf KtC' irV Nebraska foi'all adver tising vhei'e perfect ,'epi'o ductiorNpf illustati'orAS is essential n by other speakers, all of whom fa vored tne committee s rcpon adoption of the resolution. One after another of the delegates arose to speak of their experiences with courts during labor difficulties and chair had difficulty in maintaining order. The convention called upon con gress to immediately reclassify the civil service and adopt a wage scale "commensurate with the skill, tram ing and responsibility involved in the work performed with just relation to the increased cost of living." The resolution provided for the administration of the reclassification "without discrimination on grounds of sex." A resolution was adopted asking congress to limit to V per cent the "spread between the rate charged member banks by the federal reserve system and the rate banks are per mitted to charge. ' RO-C i
