Omaha daily bee. (Omaha [Neb.]) 187?-1922, August 03, 1921, Image 1

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    The Omaha Daily Bee
VOL. 51 NO. 40.
Film! m SaMaCCIaaa Hanar Hit U. I9M. it
Oaaha P. 0. UUn Act at Mirtk S. I7.
OMAHA, WEDNESDAY, AUGUST 3, 1921.
B mm l tiir), Daily aa Siii. 17.50: Dally aaly, W:
Sunday, 2.0; la lolata la Ualtta' Statu. Caaada aa4 Mailt.
THREE CENTS
'Caruso Dies
Suddenly
In Na
pi
es
World Famous Tenor Unable
to Rally From Effects of
Operation Performed
Last Sunday.
Sailed for Italy May 28
Br The Aaaoclated Trras.
Naples, Aug. 2. Enrico Caruso,
world famous tenor, died here today.
London, Aug. 2. (By The As
sociated Tress.) Enrico Caruso, the
celebrated tenor whose voice was
stilled by death in Naples, Italy, was
operated on Sunday, says an Ex
change Tclegrapli dispatch from
Naples. Yesterday afternoon Caruso
was extremely weak, heart weakness
necessitating the injection of cam
phor every two hours.
The operation, the dispatch says,
was for an ebscess between the liver
and the diaphragm, which caused
acute peritonitis. Caruso's wife
and his brother were at his bedside.
Stricken Week Ago.
The tenor was until a week ago
on the way to recovery from the
long illness which began in New
York last winter early in the operatic
season, when suddenly he had an un
expected relapse and was removed
from Sorrento to Naples.
He arrived at Naples Sunday
night, adds the message, and the
specialists who were called in de
cided to operate immediately.
Last Word Hopeful.
New York, Aug. 2. The last word
received here from Naples was that
Enrico Caruso was improving nicely
and that his voice would not be
permanently impaired by his illness.
Caruso became ill during last
Christmas week, when he suffered an
attack of pleusisy and was confined
to his apartment in the Hotel Yan
derbilt. Three times he was oper
ated on; first for pus in the pleural
cavity, then for a secondary abscess
and again in the latter part of Feb
ruary for a small abscess.
A corps of specialists attended
him and in the crisis, when the
sityir hovered between life and
death, oxygen was administered.
Early in February in one crisis
priests administered extreme unc
tion for the dying.
Messages of good wishes came to
the Caruso apartment from nearly
all the capitals and principal cities
as well as villages in all quarters of
the globe, some from persons un-i
known in the music world, but who at
me time had been among the great
J I If
siTtgers audiences auring ms
eaiss of operatic career.
Wanted to Die in Italy..
Caruso once during his illness de
clared that if he must die he pre
ferred to die ni his native Italy. He
rested at Atlantic City and on May
28, last, sailed from New York,
thousands of his admirers bidding
him farewell at the pier and later it
was reported he was rapidly recover
ing. When Caruso left for Italy he ap
peared confident that he would re
turn to America next fall and again
(Turn to Pace Tars, Colnma Fonr.)
Oil Workers Threaten
Strike September
San Francisco. Aug. 2. Twenty
thousand oil field workers in Cali
fornia will strike September 1, if
the operators do not cancel a recent
wage reduction of $1 a day, accord
ing to telegrams sent by the oil
workers to President Harding and
Secretaries Hoover, Davis and Den
by. The officers of the district
council of Oil Workers unions said
the telegrams were sent only after
the operators had refused to meet
with them.
Administration heads were asked
to use their good offices to compel
the operators to assume a different
attitude. Federal mediators who
have been attempting to get the op-
said to be preparing to leave here.
Two Men Held at Detroit
In Connection With Wreck
Detroit. Aug. 2. Two men were
being held for investigation here,
following derailment early today at
Inkster, IS miles west of here, of
six coaches of a westbound Michi
gan Central passenger train and the
overturning of its engine. The men
gave their names as Martin Yasski
and Alexander Schultz of Dearborn,
s suburb of Detroit.
Two trainmen and a passenger
were injured, none seriously.
Investigation showed that the rails
bf the westbound tracks had been
tampered with.
Germany and France Will j
Sign Reparation Agreement j
Washington, Aug. 2. Germany
and France will probably sign the
new reparations agreement ne
gotiated by Louis Loucheur and Dr.
.Walter Rathenau, German minister
of reconstruction, in a few days, it
was declared by the Petit Parisien
today. The agreement, the details
of which have not been made public,
will be submitted to the supreme
Allied council for approval when it
meets here early next week.
Senators to Sail Wednesday
On Their Way to Stockholm
Washington, Aug. 2. Senators
McKinley, republican, Illinois; .Rob
inson, democrat, Arkansas, and
Walsh, democrat, Montana, will sail
Wednesday from New York on the
steamer George Washington as
American delegates to the inter
parliamentary peace union at Stock-
World -Famous Tenor's
Voice Stilled by Death
hoj , JV 7
1'
Enrico Caruso.
Japanese Oppose
Importation Of
Chinese Coolies
Expenses of Representatives
To Washington From Hawaii
Paid by Orientals, Wit
nesses Testify.
Washington, Aug. 2. Representa
tives of organized labor in Hawaii,
sent here to oppose legislation under
which Chinese coolies would be ad
mitted to Hawaii to help relieve the
agricultural labor shortage, testified
betore the house immigration commit
tee today that their expenses had
been paid by Japanese.
Wilmot Chilton, who came here
with George W. Wright, president of
the Central Labor union of Honolulu,
when questioned by Representative
Free, republican, California, declared
Japanese merchants on the island had
contributed $1,500 so that they might
personally oppose admission of
Chinese, and that he had split it
"50-50" with Wright.
Samuel Gompers, president of the
American Federation of Labor, was
present when Mr. Free developed that
the Japanese Chamber of Commerce
of Honolulu, acting on a request for
help, decided it would be "unwise tor
the organization to contribute, but
that individual members could do so.
Earlier . Mr. Gompers -told, the com
mittee that the federation, with
which the Central Labor union of
Honolulu is affiliated, would not issue
union charters requested by Japanese
labor groups in this country.
Japs Gaining Control.
Throughout the hearings on pend
ing relief legislation, spokesmen for
th sugar planters of Hawaii have as
serted that the Japanes gradually
were gaining business control of the
island and that they were secretly op
posing temporary lifting of American
immigration laws w'hich would permit
a flow of labor needed to meet the
shortage in tim to save future crops.
Delegate Kalanianole, sponsor of
the bill before the ; committee, de
clared in a statement tonight that
control of Hawaii had been Japan's
objective for many years.
"Do the American people need
additional evidence," he said, "that
the economical control of the Ha
waiian Islands is fast slipping from
us after today's development before
the house immigration committee,
when the opponents of a measure
for immediate relief, representatives
of organized labor in Hawaii, ad
mitted reluctantly that funds which
brought them to Washington had
been secretly subscribed by Jap
anese in the territory?"
Failure of congress to raise re
strictive immigration for Hawaii, he
declared, will mean that the Japan
ese forthwith will state publicly that
the United States "is afraid to ex-
(Tnrn to Fare Two. Column Three.)
Farmer at Albion
Kills Self With Gun
Albion, Neb., Aug. 2. (Special.)
Clyde Wilson, 35, a farmer living
south of this city, was found in his
yard with a bullet hole in his head.
He was rushed to Albion in an auto
mobile for medical treatment, but
died on the way. He has been in
ill health for some time and it is
thought he caused his own death.
He leaves a widow and three chil
dren. HOW DOES a man act
who finds that fate has
sent him to the death
trap that he had set for
a thousand others?
Read
The Infernal
Machine
By F. Britten Austin
Th. BLUE RIBBON atory in
Next Sunday's Bee
lUtacnl
In
At
Zero Mark
Food Shortage Due lo Col
lapse of Production Under
Soviet Reign, Reports
To Hoover Show.
Famine
in Volga Valley
By GRAFTON S. WILCOX.
Chlcaro Tribune-Omaha Bee Leaned Wire.
Washington, Aug. 2. Conditions
in impoverished Russia, which the
United States is preparing to alle
viate unofficially through the Amer
ican Relief organization in Europe,
have been brought about, according
to careful investigation conducted by
the Department of Commerce,
through the complete collapse of in
dustry and production under the so
viet regime.
Russia's economic collapse, ac
cording to reliable reports to Secre
tary Hoover, who, as head of the
American relief forces, is undertak
ing to aid the starving people of
the country, is traced primarily to
the fact that industry there has dc
creased 90 per cent as compared
to the prewar period.
Reports from reliable sources to
Mr. Hoover show in striking figures
Russia's economic plight.
Industrial production during the
rear 1920 in percentages, compared
to prewar output, was as follows:
Pig iron, 2 per cent; copper ore,
0.6 per cent; iron ore, 2 per cent:
manganese ore, 2.6 per cent; salt, 15
per cent; rubber industry, 5 per cent;
watch industry, 15 per cent; paper
industry. 20 per cent; sugar indus
try, 5 per cent; printing, 15 per
cent; production of coal, 20 per cent;
cotton spindle operating, 3 per cent,
and woolen cloth. 4 per cent.
Famine in Volga Valley.
Before undertaking to reply to
Maxim Gorky's appeal for relief to
the starving Russians, Mr. Hoover
took occasion to inquire closely into
actual conditions and reports re
ceived indicate that the most acute
famine area covers the Volga val
ley from the Caspian sea northward.
The drouth in this area would not
be of suJh fatal character but for
the general decadence of agriculture,
reduction of surplus .in other re
gions and in the decay of transpor-
(Turn to Pace Two, Colnmn Two.) j
Labor Meeting
Opens At York
Frank Kennedy Tells of Work
Of State Labor Compen
m sation Department.
York, Neb., Aug. 2. (Special Tel
egram.) Fourteen annual state con
vention of the American Federation
of Labor opened here today, H. C.
Brown of York delivering the ad
dress of welcome in behalf of the
local labor union. Sixty delegates
were present. . ,
A resolution relative to compen
sation for soldiers, sailors and ma
rines, as outlined by the govern
ment board of vocational training,
urging the federation to go on record
in favor jet this measure, was in
troduced by Delegate Peat.
Another resolution was introduced
in regard to suffering in the far
east and was referred to the resolu
tion committee.
Frank A. Kennedy, secretary to
the labor compensation commission
er of Nebraska, addressing the as
semblv, said:
"During the years 1919 and 1920
there were nearly 25,000 accidents
reported to the department. Of this
number, a little more than 24,000
compensation, medical and hospital
expenses cases were paid without a
dispute. Twenty-one insurance com
panies carry the compensation insur
ance for the employers of the state.
"Lagst year employers paid $181,
000 for compensation insurance in
Nebraska. The law is being equally
enforced, the injured workers get
ting exactly what the law provides.
The work in this department is tre
mendously interesting. The weak
spot in the law is the lack of knowl
edge on the part of workers all over
the state as to even the existence of
the law. Wre ask all workers to di
rect injured persons to write the la
bor department, State House, Lin
coln, for information as to the pro
visions of the law. Indeed, we dare
them to write us."
Organizer Johnson for the Non
partisan league was in attendance.
At 5 the delegates were taken for a
drive around the city and this eve
nmsr. Thev were guests at the open-
I ing session of the chautauqua.
American Legion Members
To Visit Foreign Battlefields
New ork. Aue. 2. The steamship
George Washington, scheduled to sail
tomorrow with more than 250 mem
bers of the American Legion who
will visit the battlefields of France,
will depart on time, officials of the
L'nitcd States Mail Steamship com
pany said tonight.
The George Washington was
among the ships seized from the line
by the shipping board but restored
through injunction proceedings. A
hearing will be held Thursday to de
termine whether state or federal
court has jurisdiction.
Missouri Man Whipped.
Norborne. Mo., Aug. 2. John
Craig, wealthy retired farmer, was
seized by masked men last rriday
night and taken in an automobile a
mile from town, where he was whip
ped severely, it was learned todav.
The men, it was said, told Craig to
Industry
Russia
treat hn tamily better.
7
Labor Men Want Boiler
Inspector for State i
Line
coin, Aug. 2. (Special.) A
boiler inspector will be recov
state bo
r
legislature. .A
1-1... .... . .Tf -
laboring men today as they -ut
of the office of Governor M ..ilvie,
where they asked for his influence in
getting such an officer attached to
the state payroll. The governor,
they asserted, agreed to recommend
the employment of an inspector..
Laboring men who formed the
audience are: J. W. Crawford, Ben
Green, J. P. Butler, Roy Jackson and
George Amen.
Reds Must Agree
To Demand Before
Food Will Be Sent
Written Agreement to Be Nc
gotiated Accepting All Terms
Before Relief Organiza
tion Will Start Work.
London, Aug. 2. (By The Asso
ciated Press.) W. L. Brown, Eu
ropean director of the American re
lief administration, will start for
Riga next Friday for the purpose of
negotiating a written agreement
with representatives of the Russian
famine commission whereby the re
lief organization can start feeding a
million Russian children and in
valids, it was announced here today.
Herbert Hoover, chairman of the
relief administration, realizing the
delicate nature of the problems
which will confront the carrying out
of relief in Russia, suggested that
Mr. Brown go to Riga, it is said,
and there develop very carefully an
agreement covering all points men
tioned in Mr. Hoover's original con
ditions. The question of American prison
ers being released by Russia is con
sidered paramount.
Upon the conclusion of the agree
ment at Riga, the entire resources of
the American Relief administration
in Europe will be directed toward
Russian relief.
From the personnel of 40 workers
now in Europe, a preliminary mis
sion of 15 will be sent to Pctrograd
where first relief will be rendered.
The reserve supplies of the relief
organization at Hamburg and Dan
zig which have been accumulated for
months with a view to the possibility
of advantage to Russia, are consid
ered sufficient to carry on the work
until shipments arrive from America.
some lniormation received here
indicates that there are large stocks
of grain even in the reported famine
districts, the need being to introduce
supplies and materials which can be
bartered so that peasants will reveal
their hoardings and thus relieve
Russia themselves.
Omaha Men Arrested
On Charge of Robbing
Lanaaian residence
Regina, Saslc. Aug. 2. (Special
Telegram.) William Enright, living
on the South Side, Omaha, and C. A.
(Chuck) Hogan, Omaha police
character, were brought to Regina to
day from Butte, Mont., charged with
robbing the R. E. Andrist residence
near Woodend, Sask., last Decem
ber. A gun battle accompanied the rob
fcery, which was perpetrated in day
light. No one was injured.
Enright and Hogan, according to
authorities here, soent last winter at
Minot, N. D.
France and Vatican
Resume Relations
Paris, Aug. 2. Resumption of
diplomatic relations between France
and the Vatican have been formally
effected by the arrival in this city
from Rome of Archbishop Bencvcn
tura Serreti, who will act as papal
nuncio here.
Diplomatic relations between
France and the Holy See were in
terrupted in 1904. The trouble arose
when the French Chamber of Dep
uties in 1901 passed a bill to limit
the powers of religious associations
in France despite the protest of
Pope Leo XIII.
Harding in Mountains for First
Vacation
Lancaster, N. H., Aug. 2. Presi
dent Harding came into the W:hite
mountains cf northern New Hamp
shire today for the first real vaca
tion since his inauguration. At a
little lodge high above the reach of
the heat wave and four miles from
1 the nearest telephone, the president
a"d Mrs- Hardis- with close friends,
will be guests for the remainder of
this week at least, and longer, if
possible. Complete rest, with per
haps some golf, fishing and moun
tain climbing mixed, will occupy
their first attention.
The house selected by the presi
dent for the vacation is the coun
try home of Secretary Weeks. It is
or. the summit of Mount Prospect,
2,000 feet above sea level, with only
wooded slopes about it. A private
drive, closed with a substantial
wooden gate at the base of the
mountain, winds up to the little
clearing that contains the lodge.
Nearest telephone facilities are at
the mountain's foot, two miles from
Lancaster. The lodge is onlv a few
miles from the Vermont line and
about 40 miles from the Canadian
border.
The presidential party arrived late
today fter a picturesque motor ride
W more than 100 miles from Port
- I i I
A'o0
Federal Agents
Find Evidence of
Rum Running Plot
Prominent Men Said to be In
volved in Smuggling Con
spiracy Liquor-Laden
Scjiooner Seized.
New York, Aug. 2. Federal of
ficials claimed to have evidence of a
rum-running conspiracy involving
persons in various cities along the
Atlantic seaboard which would go
far toward clearing up the mystery
of phantom ships.
This claim was made after the
liquor-laden schooner Henry L.
Marshall had been seized off At
lantic City and brought here with
four of its crew by the coast guard
cutter Seneca. Its captain and mate
escaped in a motor boat.
Federal agents intimated that
more than one vessel was engaged
in landing liquor. Firm belief was
expressed that these were the light
less craft which mariners had de
clared had been sighted but had re
fused to answer signals.
No specific complaint has been
lodged against the schooner Mar
shall whiclr,with its cargo of more
than 1,500 cases of liquor, is being
htld by armed guards pending in
vestigation. Its cook and three sea
men are being detained as witnesses.
Although the schooner was out
side the three-mils limit and was
flying the British flag when seized,
federal officials asserted they were
justified in taking charge of it by
the evidence of conspiracy in their
possession.
Shipping Commissioner
Suspended for Grafting
Washington, Aug. 2. Shipping
Commissioner Quinn at New York
and Smith D. Reynold. New Orleans,
have been suspended, Secretary
Hoover announced today as a re
sult of an investigation at all ports
of the alleged acceptance by com
missioners of fees for entering and
clearing vessels.
Sincfe Inauguration
land, Me., where they left the yacht
Mayflower in the morning.
Besides Secretary Weeks and the
piesident and Mrs. Harding, the par
ty includes Senator Hale of Maine.
Senator Frelinghuysen of New Jei
scy and Mrs. Frelinghuysen, Sena
tor New of Indiana and Mrs. New.
Senator Thipps of Colorado and
Mrs. Phipps. and Secretary Chris
tian. Mrs. John W. Davin, Secretary
Week's daughter, is hostess in the
sibsence of Mrs. Weeks, who is in
Europe.
The cottage has many conven
iences and the drive mounting to
the summit is in reality a well-constructed
boulevard. Otherwise the
mountain slopes are covered by vir
gin forest from which a red fox
came out to take a look at the party
as it passed. There are several golf
courses near by.
In Lancaster the president's com
ing occasioned quite a stir and a big
covey of automobiles were parked
at the entrance to the Week's es
tate to honk him a welcome. The
arrival also prompted town officials
and business men to deny that the
visit would be made an excuse for
profiteering, local hotel keepers as
serting reports f contemplated ad
vances in hotel rates had been due
to a misunderstanding.
-iSS 1 IV I
, f WHERE ' -J n
- -x. ..i i 1 1 w w X I
HAVE YOU I fN f
About Time
Britain Gives Up
Preliminary Meet
Agrees to Participate in" Dis
armament Confab as
Planned.
London, Aug. 2. (By The Asso
ciated Press.) Great Britain has
dropped the proposal to hold a pre
liminary conference on Pacific ques
tions and has agreed to participate
in the Washington conference as
originally suggested bv President
Harding, according to official circles
here today.
This decision was reached after an
exchange of conversations between
London and Washington.
Great Britain has also agreed to
the original date suggested, Novem
ber 11. the anniversary of Armistice
day, if President Harding still con
siders that the most suitable time
and will enter the conference without
any reservations as to the set pro
gram, it was stated.
Doubt is expressed whether
Premier Hughes of Australia and
Premier Massey of New Zealand
will be able to attend, but they will,
it is said, be represented by a British
deputation.
The attendance of Mr. Lloyd
George, the prime ministe.-, also de
pends upon circumstances, it was
stated.
Lad Run Down by Car
Is Expected to Die
Carthage, S. D., Aug. 2. (Spe
cial.) Harold Vind. small son ot
Mr. and Mrs. A. J. Vind of this
city, is in a serious condition from
being run over by an automobile
driven by Harry Fulton, also of
Carthage.
According to witnesses, the child
was playing with a companion and
had started to cross the street. WThen
part way across, the boy turned and
darted back, running directly in front
of the car. He was knocked down
and run over. It is feared he will
die.
Request for Leave From
House Starts Argument
Washington, Aug. 2. A request
from Representative Fitzgerald, re
publican, Ohio, for a month's leave
of absence from the house because
he had been "ordered" as a reserve
officer to military duty at Camp
Knox, Kentuck)-, precipitated a tilt
in the house today, Representative
Lanham, democrat, Texas, object
ing to granting the request, while
Representative Garrett, acting demo
cratic leader, held that "a serious
question" had been raised and re
quested that action be deferred.
"I would like to know what power
can order a member of congress
away from his duty in peace times,"
Mr. Lenham said.
With half a dozen members clam
oring . for recognition. Representa
tive Mondell, republican leader,
ended the argument by moving ad
journment.
i
Militarists Arc Disturbed j
Over Situation in Hupeh
Peking, Aug. 2.(By The Asso
ciated Press.) Military leaders here
are reported to be disturbed over
the situation in the province of Hu
peh, which recently became engaged
in hostilities against the providence
of Hunan. It is declared they are
not certain regarding the sympa
thies of Gen. Wu Pei-Fu. leader of
government troops in Hunan, and
there is some speculation whether
he will fight for the retention oi
Wang Chan-Yuen, inspecting com
missioner of the two provinces.
4
K. of C. to Start
Correspondence
Course for Vets
Lodge Plans School Exclusive
sively for Education of
Former Service Men
Membership Increases. -
San Francisco, Aug. 2. A de
cision to establish what it terms the
"largest- correspondence school in
the United States," which shall be
devoted exclusively to the education
and general welfare of former serv
ice men, and announcement that the
order had increased by 87,660 since
last year, made up the outstanding
features of the opening session of
the Knights of Columbus' 39th an
nual supreme convention.
Supreme Secretary William J.
McGinley outlined the correspond
ence system, which . will have its
headquarters in the rie building
which the order is erecting in New
Haven, Conn.
"No limit will be placed upon the
number of former service men seek
ing enrollment in the correspond
ence school and no limit will be set
upon practical subjects in the course
of study," McGinley reported. The
svstenr, he said, will cost anproxi
mately $1,000,000 to establish and
will call for a first rear enrollment
of 100,000 students. '.
Supreme Knight james A. Fla
hertv reported that approximately
$4,000,000 had been expended by the
knights in the past year, in main
taining 132 free night schools and
500 university and college courses
for former service men.
We shall stay with the veterans
until the end," he said.
On June 1 the total membership
cf the Knights of Columbus was
758.155 and New York led with
107,649 members, McGinley re
ported. The knights were instru
mental in raising $4,000,000 for char
ity during the year, principally for
Herbert Hoover's relief work, re
lief in Ireland and Cardii.al Mer
ger's Belgian rehabilitation fund.
He expected that the order would
have 1,000,000 members in another
year.
The convention was formally
opened with a. religious observance,
which was a combination of military
and papal mass, in the convent gar
dens of the old mission Dolores. It
was preceded by a pageant which
wended its way through the down
town streets from the Union ferry
to the convent gardens.
De Valera Has Informally
Presented Peace Proposal
London, Aug. 2. Eamonn De
Valera, president of the Irish repub
lic, has informally submitted to all
available members of the Irish re
publication parliament, the peace
proposals of Prime Minister Lloyd
George, it is declared by the Daily
Sketch. When the members of the
parliament are summoned to debate
the prime minister's suggesstions.
the newspaper says the session will
probably be secret. It is to last for
several days.
The Weather -
Forecast.
Fair and warmer Wednesday.
mgnest Tuesday.
Hi, m,,
flav.m..
7 . m . .
a. m . .
a. m . .
10 a. m. .
11 a. m..
3
1 P. m.
. ..5
.. .
. ..!
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...
S p
p,
4 p.
5 p
p,
1
1'J noon.
.M
a P.
Hourly Temperatures.
rhrnn
Davenport
naw 74
Or MoUaca IS
Laadar .13
Kalt Lak
Kant Fa
Winittaa .
Yalcattna .,
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,.8
State Bank
Broke Law,
Hart Says
Officers of Pioneer Bought
Colonial Bonds in Defiance
Of Department of Trade,
He Asserts
Raps Omaha Attorneys
Lincoln, Aug. 2. (Special.) J. E.
Hart, secretary of the state depart
ment of trade and commerce, today
accused officers of the defunct Pio
neer State bank of Omaha of violat
ing the state banking laws in con
nection with the handling of certa;n
secrities.
Hart wrote an open letter to W.
R. Bernd, manager of the Oniah
.Association of Credit Men, in answer
to a letter sent to Hart by Be;nd,
urging Hart's depnrtmeut to warn
against investment in promotion
schemes in which the sale of bond in
t!ie defunct Colonial Timber and
Coal corporation was cited.
Hart's letter said:
"In the case of the Guaranty Se
curities company, which 3-ou men
tion, permit me to saythat this com
pany never received a permit to sell
the Colonial Timber and Coal cor
poration bonds, and the officers of
the Pioneer bank bought the bonds
in violation of the banking laws and
held them in the bank in defiance of
department orders to take them out."
Lambasts Attorneys.
Continuing, Hart lambasted Oma
ha attorneys whom he holds respon
sible to a large extent for exploita
tions on the purses of Omaha and
"Nebraska people in recent failures.
"Some of your foremost attorneys
in Omaha lend their talent, time and
legal ability to the practice of pro
motion enterprises for the fees which
they demand and the fact that these
promotion schemes later go on the
rocks does not seem to deter them
from a continuation of these tactics.
"It is truly a deplorable condition
when the brain, brawn and intellect
of any community seeks to syste
matically rob, despoil and defraud
the frugal of his savings, the widow
of her mite and blast the future of
the uninformed but otherwise honest
and well-meaning individual."
Then Hart stated that his depart
ment in interviews, speeches and hun
dreds of letters had urged banks to
get away from all promotion enter
prises and that the same tactics had
been pursued by the state bureau of
securities.
Department Is Defied.
"This department has been defied,
resisted and persistently contested
and threatened with damage suits by
Omaha business men, attorneys and
promoters for our efforts to curb
their activities.
"Instances are on record where
this department has been compelled
to fight the officers, directors and
even stockholders to save them from
disaster.
"I mention these incidentally to
indicate the severity of the contest
on this side of the firing line.
When Hart made public this let
ter, he said:
"This is the first letter I ever gae
out for publication." -
Tax on Gasoline, Coal
And Autos Advocated
Helena, Mont., Aug. 2. Levying
of a tax on every gallon of gasoline,
a tax on every ton of coal, and a
tax on all automobiles coming into
the state from other states, was ad
vocated by Louis . L. Emmerson,
president of the National Associa
tion of Secretaries of State, secre
tary of state of Illinois, at the open
ing session of the association at the
state capitol today. . . '
President Emmerson stated that it
is not a question of expenditure ri
duction in most sttates. but of rev
enue increase and that indirect
method of taxation is most success
ful. Ford Reducing Rail Rates
Too Fast, Commission Say
Washington, Aug. 2, Freight re
ductions on Henry Ford's Toledo.
Detroit and 1 ronton railroad have
been made too rapidlj' to comply
with the regulations of the Interstate
Commerce .commissi on. His applica
tion to file a tariff reducing by 20
per cent the rate on stone from
Sibley, Mich., to Detroit was for
this- reason denied by the commis
sion. Mr, Ford put into effect a re
duction on July 26, of 5 cents a
hundred on this traffic and under
the regulations 30 days must elapse
before additional reductions can tc
made in the same traffic.
Decrease of $206,000,000
In Public Debt Announced
Washington. Aug. 2. A decrease
of $206,000,000 in the public debt
during July was announced today by
the treasury. Total gross debt
July 31 stood at $23,771,000,000.
compared with $23,977,000,000 Jjifle
30. Officials said that the decrease
was explained by retirement cf
treasury certificates of indebtedness
and the operations of the sinking
lund during July 1, while no new
issues of government securities were
offered during the month.
Hungary's Peace Pact With
World Becomes Effective
Budapest, Aug. 2. The Trianon
treaty by which peace between Hun
gary and the allied nations was estab
lished became a law in Hungary
yesterday by the publication of the
text of the convention. The treatv
was printed in a special edition of
the Official Gazette, which bore
black borders, and was accompanid
by a map showing the present boun
dary of Hungary as compared wUb
those of before jhe war.