The Omaha Daily Bee
VOL. 51 NO. 34.
tnttn u Stconf-ClMt Miliar Miy 28. IM. l
Om.ht p. 0. Uiuir Act ( Mtrtk 1. 179.
OMAHA, WEDNESDAY, JULY 27, 1921.
By man (I ynr), Dally and Sunday, 17.50: Dally only. 151
Sunday, 12.50; Is polati In Unlttd Statei, Canada and Mtxleo.
THREE CENTS
oldier Aid
Bill Again
Hits Snag
House Conferees Fightin;
Amendments Made by Sen
ate in Attempt to Elimi
nate Red Tape.
Poctor Changes Stand
By ARTHUR SEARS HENNING.
Chicago Trlbunc-Omnhs IV Lrawil Wire.
Washington, July 26. The Sweet
bill to establish a veterans' bureau
anil end the scandal of government
neglect of disabled soldiers is on the
rocks again.
The conferees appointed by the
house are righting every important
change proposed by the senate to
eliminate red tape and liberalize the
treatment of disabled veterans.
A meeting last night, lasting until
the early morning hours, failed to
bring the conferees into agreement.
Another effort will be made to get
together tomorrow, but indications
are that the senate conferees must
either surrender their amendments
or, jsk still further delay in placing
e bill on the statute books.
The Smoot amendment making the
proposed veterans' bureau an inde
pendent institution, responsible di
rectly to the president, met with
strong opposition from the house
conferees, although it was especially
-Argcd by the Dawes commission and
y various soldicrs'organizations, on
the ground that it is necessary to
eliniiaate red tape. Another impor
tant amendment which appears to in
vite the emphatic opposition of the
house conferees is the one sponsored
by Senator Walsh of Massachusetts,
designed to afford more prompt
treatment to veterans suffering from
tuberculosis and mental disorders.
Say Charges Unnecessary.
Both of these amendments, as well
as numerous others of less impor
tance, were adopted by the finance
committee after weeks of considera
tion and were unanimously approved
by the senate. The house conferees,
however, hold pJl these changes to
be unnecessary and asserting their
pride of authorship, are demanding
adoption of the bill without the
"dotting of an i or the crossing of a
r' t " Aa an vamn1 rf tVioft-
vieldinur attitude, thev forced the sen
ate to yield to the striking out uf
an amendment increasing the allow
ance for attendance for totally blind
ed soldiers,, from $20 to $50 a month,
hlthough the amendment was placed
in the bill by the senate finance com
mittee at the. urgent request of Rcp
,JFtje Hamilton Fish of New
The ' Session . of the conference
committee developed heated ex
changes between Senator Walsh of
Massachusetts and Dr. Haven Emer
son", assistant director of the war
risk insurance bureau, in charge of
the medical division. Dr. Emerson
supported the house conferees in
their opposition to the Walsh amend
ment, which he declared would "make
liars of physicians."
V. Transfers Burden of Proof.
" The Walsh amendment seeks to
transfer from the di ibled veteran to
the government, the burden of proof
on establishing the origin of dis
ability. It would have the govern
ment grant compensation to disabled
veterans suffering from tuberculosis
and mental diseases, on the pre
sumption that their disability was
contracted in line of duty. It would
abolish the practice of withholding
compensation until the disabled man
was able to furnish sufficient affida
vits to prove that he contracted his
(iisability in the service.
Dr. Emerson was on the stand
before the senate committee on sol
diers' relief. He admitted having fur
nished President Hardiitg with the
information that there was a surplus
of 6.000 beds available for disabled
veterans. The committee manifested
considerable , impatience with this
statement, in view of the disclosures
nreviouslv made. Dr. Emerson final
ly agreed with Dr. C H. Lavender
of the public health service, who was
lso before the committee, that there
a - e
certain classes of patients at parti
cular times and in particular places.
Members of' Parliament
Probe Dry Conditions in U.S.
New York, July 26. Two mem
bers of the British parliament
started a first-hand investigation to
ascertain how prohibition is- working
out in the United States. The two.
C. H. Sitch and J. E. Davison, said
they would report their findings to
the labor party, of which they are
members.
Both took occasion to deny pre
dictions of American reformers that
England will be dry within 10 years.
Grain Dealers to Discuss
New Pooling Movements
Chicago, July 26. The situation of
the country's grain trade as af-
K fected by pooling movements now in
progress in most states, will be taken
up at a meeting of the special ex
ecutive committee of the Grain Deal
ers National association here to
morrow. Every important grain exchange in
the country has joined the associa
tion, R. I. Mansfield, chairman of
the committee, announced.
Petitions for Recall of
Union Oficers Confirmed
Washington Tiilw 26. Recall oeti-
s against President George L.
y and other officials of the In
tionat Printing Pressmen's
o ordered drawn up two weeks
( P the Washington local of that
gusive been formally confirmed
bilitycal, it was learned today,
in ee circulated among other
legislacappropriation of the in
an Irisinion'i funds is charted.
ill Fill Vacancy
Left by Jim Dahlman
c29. C?onin
o'vett.
D. H. Cronin Of
O'Neill Chosen
For U. S. Marshal
State Senator Overcomes Lead
Of Nickerson in Early Bal
loting; Geography Plays
Pa.t in Selection.
Washington, July 26. (Special
Telegram.) After three "ballots the
republican delegation in congress se
lected D. H. Cronin of O'Neill for
United States marshal for Nebraska
at the session of the delegation in
Senator Norris' committee room last
right.
Acting Marshal Nickerson led in
the early balloting, but he could not
command a majority of the votes of
the delegation and finally Cronin
came under the wire a winner.
Geography played a consequential
part in the choice of the members,
the First district having the collec
tor, the Second the United States
attorney, the Fifth the prohibition'
enforcement officer, leaving three
districts to contend for the marshal
ship.
Judge Kinkaid's constituent in the
"big Sixth," who. has' figured in re
publican politics in Nebraska for
many years and is known personally
to most of the members, commanded
a following from the beginning and
when Nickerson failed to develop the
necessary votes it was comparatively
easy to put Cronin across.
According to a member of the Ne
braska delegation, l.ronin received
the votes of Senator Norris and
Representatives Reavis, Andrews
and Kinkaid on the third ballot, Mc-
iLaughlin and Jefferis voting for
Nickerson and bvans tor Lowman,
The selection of Cionin gives gen
eral satisfaction, not only because
it is the first time the "Big Sixth"
has received one of the leading fed
eral positions in the state, but be
cause Cronin, as an editor, has car
ried the banner of republicanism
ever since he reached his majority.
Girls Almost Drown
When Auto Ditched
Near Pawnee City
Tawnee City, Neb., July 26. (Spe
cial.) Three girls and two men were
seriously hurt when the car in which
they were riding ran off an embank
ment and rolled to the foot, 30 feet
below, into three or four feet of
water.
Bessie Brown, who was driving,
Mattie Brown, Leo Brown, Charles
Slack and Opal Ellsworth were
going south from Dubois and nearing
a bridge over Turkey creek. The
girl driver looked back when she
heard a car approaching from the
rear, her machine swerved from the
embankment and rolled down to
wards the water. In her excitement
she whirled the steering wheel and
the car turned over. Charles Slack
sustained a wrenched back. The two
girls were in the water longest and
Mattie was nearly drowned. - It was
necessarv to extract mud from her
lungs. Opal Ellsworth sustained a
broken arm and was nearly over
come by the water. Brown was un
injured.
SNIFFY, the burglar,
had a good memory.
He could almost re
member how many
times he had done
time. But he forgot
whether - Jessop said
to turn to the right or
left. ,
The Oak From
the Acorn
By Clifford Raymond
Blue
Ribbon
Rctloiv
You'll enjoy this BLUE
RIBBON short story ia
Next Sunday's Bee
Fines of $5
In Ashland
Fireworks
Constable Wins $4 Bet When
Magistrate Decides Town's
Sanctity Shall Be Pre-
servea
Notice Given of Appeal
By a Staff Correspondent.
Ashland, Neb., July 26. The sanc
tity of Ashland shall not be violated.
This was made apparent this morn
ir.er when Police Magistrate Jesse N.
Moon fined three of the seven young
men accused of "unlawfully explod
ing combustible articles known as
fireworks" here on Sunday, July 3.
The first of these seven was Perry
Anderson, brother of Mayor H. F.
Anderson.
Constable Wins Bet.
Also thus it was that Lee Martin,
restauranteur and constable, won his
$4 bet with a patron who argued that
none of the youths would be fined.
Perry Anderson's hearing was held
in Judge Moon's courtroom before a
mirthful crowd of spectators last Sat
urday afternoon, and a decision of
the court was reserved iintil this
morning.
That decision, handed down at 10
a. m. by the clock, was a fine of $5
and court costs, which will equal $18.
Then, after a short hearing full of
verbal fireworks, Edward Chris
chillcs and Frank Madison, also were
fined $5 and costs each.
They're Going to Appeal.
Their fines may be withheld for 10
days, during which time, Harlan
Bryant, attorney for the defense and
county attorney for Saunders coun
ty, will appeal to the district court,
he notified Judge Moon.
It is even intimated all over Ash
land that the cases will be taken
clear up to the state supreme court
if necessary.
Ernest Barnes, the fourth youth
in the case, was hauling wheat today
and his hearing was et for 8 tonight.
Otto Cammer's case, the fifth, has
been continued 30 days, while
Frank Gilbert, the sixth youth,
pleaded guilty, was fined $5 and the
mayor is expected to remit the fine
because of the guilty plea.
John Evans, the seventh youth, is
working on his farm.. He hasn't
even been arrested yet.
She's Still on Job.
Mrs. Irene Buell, city attorney
who was "fired" in a resolution
adopted by a special meeting oi the
council called by Mayor Andersen
on his return from a month's trip,
when Ordinance 111, which the sep
tet is accused of violating, was de
clared rescinded, appeared in court
this morning to prosecute the cases
and was recognized by the. court.
She refuses to be fired.
When Attorney Bryant appeared
from Wahoo this morning for the
hearing he asked that the court rus,h
the cases through so he could get
back to Wahoo.
He objected to Mrs. Buell's ap
pearance as prosecuting attorney, but
the court permitted her to remain.
"We have no personal feelings,"
(Tnrn to Pttfre Three, Column One.)
Former Cashier Is
Held on Charge of
Defrauding Bank
Lincoln, July 26. (Special.) Fed
eral officials arrested Frank Burling,
former cashier of fiie First National
bank at Chappcll, Neb., today, on a
charge of defrauding the hank out
of $10,000 on May 6, 1920, by is
United States commissioner in the
suing two fraudulent certificates of
deposit of $5,000 each to Joseph W.
Johnson.
Burling was arraigned before the
afternoon, waived preliminary hear
ing and was bound Over to the fed
eral grand jurv at Omaha. He was
released on a $10,000 bond furnished
by his mother.
Recently Burling has been living in
Lincoln. At one time he was in
charge of a bank at Cortland, Neb.
New York Man Fined $1,000
For Evading Luxury Tax
New York, July 26. Herbert T.
Martin, treasurer of Martin & Mar
tin, Inc., dealers in leather goods,
was fined $1,000 today in federal
court for defrauding the United
States out of luxury taxes. The cor
poration was fined $2,000. Pleas of
guilty were entered in behalf of
both. ,
This was the first luxury tax case
prosecuted in the federal court for
this district. Judge Shepard said
that the reason he did not sentence
Martin to jail was that pleas of guilty
had saved the government the ex
pense of trial. He gave warning,
however, that jail terms would be
imposed in the future.
England to Free Members
Of Dail Eireann in Prison
Belfast, July 26. (By The Asso
ciated Press.) The Belfast Tele
graph's Dublin correspondent says
today he understands virtually all
the members of the Dail Eireann or
Irish republican parliament, who are
in jail will be released at an early
date. This action will be taken to
give them an opportunity to meet
and discuss the British government's
proposals for a settlement of the
Irish question, he adds.
Gen. Wood May Reconsider
Philippines Governorship
Washington, July 26. Intimations
have reached administration officials
that Major General Wood might be
willing to reconsider his previous
decision against acceptance of the
governor generalship of the Philip-Bines,
Woman Assistant of
Daugherty Resigns
Washington, July 26. Mrs Annett
Abbott adams, the first woman to be
an assistant attorney general, will
sever her connection with the gov
ernment and return to private prac
tice in San Francisco, August 1, it
was said today She resigned some
months ago, but remained to finish
up pending cases in her office under
which fall all legal questions involv
ing prohibition.
During her government service
Mrs. Adams wrote a number of im
portant liquor opinions, including
the intransit liquor ruling wwhich
holds that no ships may enter the
three-mile limit with liquor aboard.
Attorney General Daugherty will
appoint a woman to succeed Mrs.
Adams, but so lar has not made a
selection.
Smith Standard
Bread Law Hits
Snag at Hearing
Temporary Injunction Issued;
Both Side3 to Gather More
Evidence for Later
Hearing.
Lincoln. Tulv 26. (Special.) The
Smith standard weight bread law,
which weathered the dozens of reefs
and shoals arranged for it by the
big baker lobby in the legislature,
hit a snag here today in Judge W.
W. Morning s division of the Lan
caster district court.
Judge Morning issued a tempo
rary injunction against enforcement
ot the law. lhe law was due to
become effective Thursday, July 28.
"I will say frankly that I would
not issue a permanent injunction
on the evidence produced," Judge
Mor-m'ng said, "but as I understand
both sides have more evidence I
will grant a temporary one with the
understanding that attorneys for
both sides will get together and
agree on an early date for a hearing
on an application for a permanent
injunction." V',
Scores Omaha Bakers.
Representative Ed Smith of Oma
ha, author of the bill, assisted As
sistant Attorney General C. L. Dort
in presenting the state's tide c
the case.
Smith scored Omaha bakers bring
ing the application for the injunction.
"It means hundreds of thousands
of dollars to them yearly and means
an equal loss to the people of Oma
ha and the state," Smith said. "As
the law stands now bakers put the
minimum weight on the bread and
then sell tt. to the consumer. At
an time they desire they can drop
an ounce on the weight, just so they
maintain tne minimum.
"Suppose Omaha bakers dropped
the weight one ounce in Omaha. It
would be $500 clear profit in one
day and $180,000va year to them.
That is in Omaha alone, based on
figures of Omaha consumption. It
it means that much in Omaha, think
how much money it means through
out the state."
Other Cities Not Represented.
The" application was ii'ted by Oma
ha bakers. The bakers in other
cities either declined or were not
asked to join in the application.
The Smith bread bill demands
that bread be baked in one-half
pound, pound, and pound and one
half loaves with the exact weight
stamped on the loaves.
The law permits a two-ounce toler
ance. The Omaha bakers declared
they could not bake the exact weight
with only a wo-ounc tolrancec.
smith produced ordinances and
state laws from other cities and
states which showed that bakers are
complying with similar laws and
only a 1-ounce tolerance is allowed.
Omaha bakers present at the hear
ing and taking an active part in it
were: Jay burns, P. F. Peterson
and Milton Peterson.
Man and Woman Injured
In Plunge Down Glacier
Salt Lake, July 26. O. D. Rich
ardson of Seattle and Mrs. Leonard
Fish of Salt Lake Citv. his sister-
in-law, are recovering from slight in
juries and shock which they suffered
when they plunged 300 feet down a
glacier on the Alta divide in the
Wasatch mountain range Sunday.
Richardson lost his footing in an
endeavor to save Mrs. Fish when she
started to slide down the glacier. The
next moment he also slipped and
joined his companion 300 feet below
on a cleft of rocks. Both were
knocked unconscious. They recov
ered several hours later and cried for
help.
Boy Scouts in the vicinity ren
dered aid to the couple, who were
numbed with cold.
Chief Drops "Hints"
To Coppers From Air;
Promises Anvils Next
Chicago Tribune-Omaha Bee Ieased Wire.
Chicago, July 26. Chief of Police
Frank Laatz of River Forest knew
his policemen were loafing on the
job, but it was hot and dispiriting
work "peperizing" them on foot. So
he' went to Checker Board field and
engaged an airplane and an aviator.
Then he loaded up with copies of the
revised police rules and started out
over River Forest.
He espied one of his patrolmen
arguing with an ice wagon driver
when he should have been out search
ing for yeggs, so he dropped a copy
of the revised rules, bound in half
calf. It landed on the ice man and
impressed him very much. Still
further on he swung off another copy
which landed on the head of a cop
per who was idling his time away
in the shade.
The chief gave warning to the
force at inspection this evening, that
on his next trip via airplane he will
carry a stock of anvils, unless the
hints thrown out bear immediate
fruit.
Whan timet ere Hath and everybody
Cat when thnmm arm hard and taxtt
Man Accused Of
Murdering His
Stepchild Held
Body of Girl, 10, Weigbted
With Irons, Found in Irri
gation Ditch; Stepfather
Had Made Threats.
Sioux City, la., July 26. Suspected
of having murdered his step-daughter,
12, Harry Vernon Hill, alias
Thomas Campbell of Ponca City,
Okl., was arrested here this morning
by a Colorado deputy sheriff as he
stepped into the postoffice to claim
a suitcase which he had mailed to
Sioux City from Denver.
The motive of the suspected mur
der is unknown. The body -of the
girl was found in an irrigation ditch
near Derby, Colo., by an engineer.
Hill had not been informed late
this afternoon of the real charge
against him. Police refused to al
low reporters to talk to him.
Denver, July 26. The murder of
Helen Maxine Short, 10-year-old
Denver girl, whose body was found
last Saturday drowned and weighted
with irons near "Eno, Adams county,
Colorado, was one of the most bru
tal in that section of Colorado.
Hill, stepfather of the girl, ac
cording to polic'e, took her from a
children's home here last week. The
youngster's mother had placed the
girl in the institution. Previously,
according to authorities, Hill ap
peared at the juvenile court to ask
about his right to remove the child
from the home.
The girl's mother told police that
Hill had made repeated threats to
kill the girl because his wife would
not send him money.
The post-mortem proved, accord
ing to Coroner E. J. Jones oi Adams
county, that the little girl was alive
when, held helpless by. heavy iron
railroad iron plates fastened to her
neck and ankles by wires, she was
thrown into the water of an irriga
tion ditch.
Salaries of Mexican
Federal Employes Cut
Mexico City, July 26. In line with
a recently announced program of
economy by which it is hoped to
stabilize Mexico's finances, President
Obregon last night issued a decree
providing for a reduction of 10 per
cent in all federal salaries except
those of less than three pesos daily
The reduction applies to military and
civil employes alike and will be ef.
fective between August 1 and De
cember 31.
Senate Seeks Draft on All
New Booze Prescriptions
Washington, July 26. A resolu
tion requiring the . internal revenue
commissioner to transmit to the
senate the tentative draft of regula
tions permitting physicians to pre
scribe beer, was introduced in the
senate yesterday by Senator Moses,
republican. New Hampshire, but
Senator Nelson, republican, Minne
sota, objected and its immediate
consideration went over.
High Cost of Flying Drops.
New York, July 26. The high cost
of flying got a jolt with the an
nouncement by a company operat
ing flying boats between New York
and Atlantic City, of a 50 per cent
decrease in fares. Rates were cut
from $100 to $50 for a one-way trip
and a round trip was offered for $8$,
Interest in Public Funds
(CopyrUM: 1031: Br Tbe Cblcaro Tribune. 1
it buty rmUng in the money nobody tekea much interett in what
happen to the Public Fonda.
mrm opprettioe everybody i intereeted in what happening to
' Public Fund:
Service Honor
Recommended
For Lt. Hanbery
Omaha . Representative Calls
Attention to Citation of
Omaha Newspaper Man
For Heroio Action.
Washington,' July 26. (Special
Telegram.) In a letter today to
Maj. Gen. P. C. Harris, adjutant
general of the War department,
Congressman Jefferis has recom
mended that a distinguished service
cross be awarded Lieut. James W.
Hanbery, late of the 59th infantry,
now a newspaper man connected
with an Omaha daily.
The Omaha representative called
attention to the citation of Lieuten
ant Hanbery by Major Lewis Far
rell of Camp Knox, Kentucky, who
stated that Lieutenant Hanbery be
ing in command of the attacking unit
of the assault company of his battal
ion, led his platoon to their objec
tive through heavy machine-gun and
artillery fire two miles north of
Courrhamos, France, on July 19,
1918." Continuing, Major Farrell
points out that after his company
gained its objective the battalion on
his left having been held up by the
enemy's fire, Hanbery's company
and battalion were exposed to a rak
ing flank fire, which if prompt ac
tion had not been taken would have
wiped out the entire battalion.
Major Farrell states that Lieuten
ant Hanbery on his own initiative
reorganized the attacking lines and
although wounded led in person a
brilliant and successful attack against
the enemy's machine gun nests,
Hanbery being wounded a second
time in this charge. Although in
a helpless condition Hanbery refused
succor in order that the lives of his
men might not be further endan
gered. Supplementing this citation, Con
gressman Jefferis points out that
Lieutenant Hanbery is by reason of
his wounds a cripple and states that
in the opinion of military men Han
hsbery performed a deed that would
entitle him to the medal honor, as
being beyond the call of duty, and
heartily recommends Lieutenant
Hanbery's valor to the favorable
consideration of the War depart
ment. Gredt Northern Asks I. C. C.
For Loan of $15,000,000
Washington,' July 26. Application
for a government loan of $15,000,000
was made today through the Inter
state Commerce commission by the
Great Northern railroad that plans
were shaping for railroad refunding
operations which would make the
money available. It would be used
to repay a similar loan obtained from
the government at the close of fed
eral control.
Denby Not Yet Making ,
Plans for His Western Trip
Washington, July 26. Secretary
Denby said late today he would be
unable for some time to consider
plans for' his western trip on account
of budget proposition and other de
partmental affairs.
Bishop Curley Is Named
Archbishop of Baltimore
Rome, July 26. (By The Asso
ciated Press.) The pope has ap
pointed Bishop Michael J. Curley of
St. Augustine archbishop of Balti
more. "-
the
Carelessness Is
Cause of Faulty
Paving, Charge
Johnson Says County Engi
neer and Contractors Admit
They Had Not Looked
At Reports.
Lincoln, July 26. (Special.) In
excusable carelessness on the part of
Lew Adams, Douglas county engi
nerr, and the head of the Murphy
Brothers' Coiistruction company,
was charged today by George E.
Johnson, state engineer, upon his
return from the investigation of the
Lincoln Highway paving job at
Omaha.
"Both Adams and the company
testified that reports have been
made daily to them for more than
a month on the amount of materials
used in laying the concrete base on
the Lincoln Highway job," Johnson
said. "And both men testified that
they had never looked at those re
ports. "I call such business nothing ex
cept inexcusable carelessness. A
plance at those reports would have
shown instantly if the right quantity
of materials were being put into the
concrete."
Johnson stated that nothing more
would be done until the result of the
lesistance tests of concrete already
laid had been completed by Prof.
Clark Mickey.
"My recommendation to the Doug
las county commissioners is to re
organize their forces instantly and
get rid of such a careless manner
of doing business which the tax
payers must pay for so dearly,"
Johnson said.
Railroad Will Suspend
Operation on August 1
Jefferson City, Mo., July 26. The
Missouri public service commission
was advised in a telegram from J.
C. Murray of Harrisonville, Ark.,
secretary and treasurer of the Mis
souri and Northern Arkansas rail
road company, that the road would
cease operation August 1. The com
mission was told that efforts to ob
tain funds to continue operation, had
been unsuccessful.
Maine Professor Elected
..Head of Butler College
Indianapolis, July 26 Dr. Robert
Judson Aley. president of the Uni
versity of Maine for 11 years, was
elected president of Butler college,
Indianapolis, today.
The Weather -
Forecast
Nebraska Fair Wednesday and
probably Thursday; cooler Wednes
day. Iowa Unsettled Wednesday with
thundershowers in east and central
portions: somewhat lower tempera
tures; Thursday fair.
Hourly Temperatures.
5 s. m ..74 I 1
a. m ",it
7 . m 75 s
8 a. m 7A 4
a. m. 7l 5
10 a. m 81 A
11b. m 83 7
13 noon 87 S
p. m 7
P. m 9
p. m no
p. m Mi
p. m HI
p. m 89
p. m SI
p. m. S3
. H
ighest Tuesday.
RSI fait lake St
90l Runt Fe 14
SOIHIierldon Hi
Chcyrnn . .
Ie Molnm
Dodn ( Hr
Imlrr , . . ,
Pnohlo . . . .
"i'Mon Vttj R
t ValmtlM .... . . . ss
Bapld City fcM,v8t
Solution of
Rail Tangle
Presented
Harding, in Special Message,
Asks Extension of Finance
Corporation's Authority
For Funding Debt
Open Way to Adjustment
Oy The Aanorlutrd I'rrnii.
Washington, July 26. President
Harding, in a special message to
congress today, asked it to extend the
authority of the war finance corpora
tion to purchase securities, probably
up to $300,000,000 now in the hands
of the railroad administration, so that
the proceeds may be used for settle
ments with the railways.
This, the president told congress,
would open the way to "early adjust
ment and relief" of the railroad prob
lem. There was no thought, hp said,
of asking congress for additional
money. x .
Railway claims, based on the "in
efficiency of labor" during the war,
the president said, were to be waived
for the present to hasten settlement
without surrender of any rights in .
court. Although the railways owe
the government large sums, the prcsi-
dent said, the government also owe
the railroads large sums on v?rious
accounts.
"No added expense," said the presi
dent, explaining his request, "no add
ed investment is required on the part
of the government, there is no added
liability, no added tax burden.
Asks Authority Only.
"It is merely the grant of authority
necessary to enable a most useful
and efficient government agency to
use its available funds to purchase
securities for which congress already
has authorized the issue, and turn
them into channels of finance ready
to float them."
"The contract covering operation
provided that the railways should be
returned to their owners in as good
condition as when taken over by the
government and the transportation
act, recognizing that betterments and
additions belong to capital account,
provided that such' sum as the rail
way companies owed the govern
ment for betterments and new equip
ment, added during the period of
government operation, might be re
funded. There has been at no time
any question about the justice of
funding such indebtedness to the
government. Indeed it has been in
progress to a measurable degree .
ever since the return of the railroads''Ji
to their owners. It has been limited,
however, to such cases as those in
which final settlements with the rail
way administration have been effect
ed.. The process is admittedly too
slow to meet the difficult situation
which the owners of the railroads
have been facing, and I believe it
essential to restore railway activities
and essential to the country's good
fortune to hasten both funding and
settlement.
Government Owes Roads.
"Quite apart from the large su-.,
owing to the government which we
are morally and legally bound to
fund, the government admittedly
owes the railway companies large
sums on various accounts such as
(Turn to Pnge Two, Column Two.)
- 0
A. F. L. Scores Proposal
To Permit Chinese to
Immigrate to Hawaii
Washington. Tulv 2C Fffnr. n
Pass legislation nermitlincr tho im.
- r -- ..... ....
portation of Chinese coolies into
Hawaii, is a consp.racy that has
behind it. their "eventual sitmiccinn
into the United States" the legislative
committee ot the American federa
tion of labor charged in a report
made public today.
Representatives of the sugar in
terests of Hawaii, the report said,
have advised sugar men of this
COUlltrv not to interfere with the
enactment of a law permitting
cnincse coolies into jJawan.
"It is the entering wedge; if we
eet them. VOU will hav no tmnMA in
get them into the United States," the
report said, was the actual wording
of a statement made to sugar men in-
America.
"Admission under bond of 50,000
coolies," the report continued, "in
tended to shackle them to their jobs
ostensibly for five years, is one of
the greatest legislative crimes of the
century."
Bill Increasing Powers of
Finance Board Introduced
Washington, July 26. After elim
ination cf provisions authorizing the
war finance corporation to take
charge of railroad debt funding, the
bill drafted by Secretary Hoover of
the Department of Commerce and
Director Meyer of the war finance
corporation, to broaden the corpora
tion's power to provide credits for
agricultural exports, was introduced
today in the senate by Senator Kel- "
'S republican, Minnesota.
McKelvie Asked to Address
Alexandria Farm Picnic
Alexandria, 'Neb., July 26. (Spe
cial.) A big farmers' picnic at
Alexandria on August 3, has been
decided upon. The committees in
I charge arc making an effort to get
uovernor ilcKclvie and a state farm
and state farm bureau speaker for
addresses on that date.
General Strike in Rome
Rome, July 25. A general strikj
proclaimed by the extremist parties
here as a protest against the recent
outbreaks at Grosscto and Montero
tondo, in which numerous commun
ists and Fascist! were killed, was be
gun last evening. The authorities are
taking vigorous precautions to main
tain orde' v
1