The Omaha Daily Bee
VOL. 61 NO. 41.
t.r Sacaa4-Claia Miltir Mir :. 190. it
Oaiaha P. 0. Undar Act at March 3. 117.
OMAHA, THURSDAY, AUGUST 4, 1921.
By mali (I yaar. Daily an Sunday. 17 .M; Oally anly. 15:
Sunday, IV. SO; la aolati la Ualtrtf Statea. Canada and Matlca.
THREE CENTS
1
X
Kinsler To
Investigate
Failures
U. S. District Attorney Says
Recent Frauds in Nebraska
s Pass All Previous
Marks.
State Probing Failures
J. C. Kinsler, newly appointed
United States district attorney, is
laying plans for a thorough investi
gation of recent business failures
which have resulted In enormous
losses to thousands of stockholders
in Nebraska and adjoining states.
In a statement yesterday v Mr.
Kinsler said:
"Never before In the history of
the country has fraud been practiced
f-o frequently or on such a large
scale as it has been t:i Nebraska dur
ing the past few years. It is appalling.
To Go to Washington.
''I plan to leave for Washington
this month in an effort to obtain
from the attorney gereral permission
'to employ expert accountants to
look into at least a dozen dubious
ventures which have been centralized
here.
I i I "It would seem that the blue sky
department of the state, which has
been issuing so many permits to
sell stock, must in some way have
blundered. I do not blainc Attorney
General Davis."
Mr. Kinsler, Federal Judge Wood
rough and Postoflice Inspector Coble
have held conferences to determine
means of bringing to justice those
implicated in dishonest stock-selling
schemes.
Inspector on Trail.
It is known that Postal Inspector
C'olile is already investigating the af
fairs of one of the largest stoc!;-sell-it:g
ventures centered in Omaha,
with the view of filing charges
against its originators of conspiracy
tc use tne mails to dciraud.
Judge Woodrough declared yes
terday it was up to the United
States district attorney to .bring to
justice those engaged in these al
leged blue sky projects.
Davis Arrives Here.
Important developments in de
funct stock sales companies' affairs
are promised soon by Clarence A.
Davis, attorney general, who arrived
from Lincoln at noon.
"1 shall spend the afternoon in
conference with Judge Troup and
the county attorney, if he is in town,
with reference to calling a special
1 1- A lit- Act Irr'i tVintr
iases." he announced.
Vtu. .... .io-i:,i
to
be
of
say- whether charges would
brought against officers of any
the defunct companies.
Defends State Bureau.
Answering criticism directed
at
the state banking department and i
bureau, of securities for failure to
impede the stock selling scheme.'..
Davis declared that after thorough I
investigation, he found only the !
Pioneer bank case to be under state 1
i jurisdiction. !
- Every one of the other permits!
was issued and in most cases all the !
stock sold before the bureau was j
created. August 15, 1919. he stated. ;
Old Law Defective.
" The old blue sky law was riddled j
villi defects under which these pet-.
nuts were grantee'.
Davis emphasized lie had no de
sire to "pass the buck" to the Sta'.:
Railway commission, which issue!
the stock permits prior to August,
1919.
"The old bw was inadequate,
that's all," he said.
Wood Tells Filipinos
U.S. Will Do What Ever
Is Best for People
CI ir.ieu Tribune C'alile. I p rifclit. Ill" I.
S;n Jose, P. I.. Aug. 3. Begin-
rx. j t-
ji-m hi iiKiipcrion ni :nt' soninein
wands in the Province of Antique.
General Wood niadchis first address
to the southern natives in the little
town of Patnongou. not tar from
San Jose. After the usual Filit. Viio
orator had made a stereotyped plea
for independence, the general told
the people that America had spent
hundreds of millions of dollars on
the Philippine islands and it was
going to do what was best for the
people.
General Wood's partv landed at
Bugasong where it v. as driven away!
by a storm several weeks ago. This I
region is a country of shap moun-
tains and many swift rivers. It
crossed seven rivers by the aid of
bamboo rafts on its journey along !
tne cost where the people had not j
seen a governor general m many
years and where their last remeni
berance of Americans was those
who took part in the war in the
Philippines.
Sale of Farm Corporation
Stock Barred in Indiana
Indianapolis, Aug. 3. Authority- to
sell $750,000 of . its preferred stock
in Indiana was denied the Farmers
Finance corporation today by the
states securities commission. The
commission held that the Indiana
"blue sky" law forbids the selling of
securities as proposed by the finance
corporation.
:LT. S. Wins Suit to Collect
$292,672 From Rockefeller!
New York. Aug. 3. The govern- j
Tnent won its suit in the United j
States district court here todav to !
. collect ?29,672 from John D. Rock-
cfellcr. alleged to be due in income j
tax on oil company shares, which ,
f the defense had claimed as dividends j
and not iucomt)
Harding Gets Taste
Of Real Vacation at
Weeks Mountain Home
Lancaster, N. H., Aug. 3. Presi
dent Harding, who is a guest of
Secretary Weeks, had a taste of
real vacation today, but he promised
to break in on his period of rest and
recreation tomorow by speaking in
Lancaster public square. The oc
casion will be a special public gath
ering to welcome him to the White
mountains.
A number of other towns are ex
pected to send delegations, but at
the president's request, the cere
monies will be kept as informal as
possible. Mr. Harding is to make
only a brief talk.
Today the president slept late and
spent several hours resting and read
ing beneath the trees.
Probe of Revenue
Bureau Ordered
By Commissioner
Rumors of Irregularities in
Income Tax Department
Heard in Washington
Charges Kept Secret.
By GRAFTON WILCOX.
Chicago Tribune-Omaha Bee leased Wire.
Washington, Aug. 3. Sensational
and serious charges against conduct
of affairs in the bureau of internal
revenue have been ordered investi
gated bv Commissioner David H.
Blair.
The nature of the charges is not
disclosed in a statement issued by
the commissioner, but there have
been rumors for many months of
irregularities connected with the con
duct of affairs, particularly in con
nection with the income tax and
prohibition enforcement sections.
Income Tax Section Involved.
Tke most serious charges, it is re
ported, concern employes 'Of the in
come tax section. Some of these
charges have been investigated in a
preliminary way by Commissioner
Blair and he has made discoveries
investigation into the bureau gener-
ally.
The character of irregularities to
be probed is being guarded zealous
ly by Commissioner Blair and his
advisers and nothing will be disclosed
until the inquiry, which is to be
conducted by Assistant Commission
er Matson, has been concluded.
There have been rumors that the
Washington office of the revenue bu
reau has been a source of suspicious
attention for some time.
Nature of Charges.
Charges against employes arc said
to include the giving out of income
tax statements, in violation of' law, to
persons who desired them for profit
able purposes, collusion between per
sons within tlie bureau in a position
to divulge confidential information,
w ith representatives of corporations
with cases pending before the bu
reau, collusion of employes and out
side persons in business ventures de
pendent upon secret information
within the department, and charges
that some employes have accepted
money in assisting corporations and
(Turn to l'aa:e Two. Column One.)
Jane Addams Called
'Kindest Woman in U.S.'
In German Addresses
By GEORGE SELDES
t!;ica(to Tribune Coble, Copyright, 1931.
Berlin, Aug. Jane Addams is
called the "kindest woman in the
United States" and is given the of
ficial thanks of the German repub
lic in two popular addresses, one
signed by the German Red Cross
and the other by President Ebcrt,
which were sent to Salseburg where
Jane Addams is teaching in the
school of the Woman's International
League for Peace and Freedom.
President Ebert's address said in
part: i
"In the name of the German gov-j
eminent and people, I take advan- j
tr.ge of your presence in Europe to
express our deepest thanks for ev- j
ervthing which you have accom-
phshed toward the reconciliation ot
nations humanity. Shortly after hos
tilities ceased you and a number
of similar women visited Central
Europe, which was suffering under
the terrible consequences of the war
and the upsetting changes. Ger
many's condition then was nearly
unknown in your country. I must
than your reports for the necessary
understanding of ihes conditions.
These reports were responsible for
the many broadly conceived relief
commissios and especially children's
relief such as that carried on by
the American Quakers.''
Ret Siver Named for Spokane
Bond Brokerage Company
Spokane. Aug. 3. A receiver was
named today for the Irving-White-house
company, a bond brokerage
house with a branch in Seattle, on
a petition alleging the company v.-as !
insolvent. The company admitted j
its insolvency in court. Counsel i
stated the assets are between $25,000 ;
and $jO,000 and the liabilities about i
$100,000. Attorneys for the com-
panj saiu me irvmg- v iiiicuuust
company of Montana, with otfices in
Great Falls, is a separate corporation.
Decrease of $206,000,000
In Public Debt Announced
Washington, Aug. 3. A decrease
of $206,000,000 in the public debt
curing July was announced today by
the treasury. Total gros debt!
July 31 stood at $23,771,000,000,
compared with $23,977,000,000 June
30. Officials said that the decrease
was explained by. retirement of
treasury certificates of indebtedness ;
and tlie operations ot the sinking I arrested as a result ot the first "raid j
lund during July 1, while no new and 13 as a result of the second. S. !
i;sues of government securities wereiK. Hem, 73. manager of he Times, j
offered during the month i was the most seriously injured
Fox Goods
Seized by
Constable
Grocer on Trail of Former
Head of $3,000,000 Omaha
Refining Company With
$177.63 Bill.
Stockholders To Meet
Last March L. V. Fox was presi
dent of a $3,000,000 corporation.
It was the Omaha Refining com
pany, since defunct.
Tuesday, his furniture was at
tached for a grocery bill for $177.65.
Yesterday, L. V. Fox could not be
located.
Neighbors of the Fox home, 4755
Capitol avenue, said the family
moved Tuesday.
Household Goods Packed
The household goods were packed
for shipment, they said, but they did
not know where the Foxes were go
ing. Fox was in Omaha Tuesday, for
Constable H. D. Pierson reported to
Justice of the Peace Bunce he had
served the writ of attachment on his
furniture.
The writ was secured bv Louis
Sommers, grocer, Forty-ninth and
Dodge streets, for alleged nonpay
ment of an account of $177.85.
Removed From Home.
Constable Pierson repotted some
of the Fox furniture had been re
moved to the home of Eric Halgren,
1520 Binney street. Mrs. Halgren
said Fox was just storing his goods
in her home.
The attached furniture was taken
to the Fidelity Van and Storage
eompanv. 1107 Howard street.
J. T. Bertwell of the West Far
nam garage, one of the directors in
the refining company, said yesterday
he thought the Fox family was
moving to Kansas City.
"Fox told me he would go there
the last time I saw him, two months
j aS- sa,d Bertwell.
Ignorant of Meeting.
Bertwell disclaimed any knowl
edge of the stockholders' meeting
scheduled for Monday night at the
Rome hotel.
"No one told me anything about
the meeting, but I am willing to ex
plain anything I know about the
company's affairs, it the stockholders
ask me," he said.
C. E. Heaney, secretary-treasurer
of the defunct company, declined to
make any comment on the report of
Auditor J. M. Gilchrist indicating al
leged irregularities in the company's
books.' Gilchrist in his report
charges mismanagement, including
improper transfer of funds, falsifica
tion of records and irregular dis
bursements. Was Only Treasurer.
"I did not become secretary of
the company until January 1, 1920,
before that I was merely treasurer,"
said Heaney. "Therefore there is lit
tle I could say about the books."
Heaney said he would attend the
stockholders' meeting. He also
stated he did not know where Fox
could be found.
"I haven't seen him for months,"
said he. -
The Omaha Refining company
was incorporated in 1918 with
$100,000 capital stock which was in
creased later to $3,000,000. An ex
tensive stock-selling campaign was
launched and B. C. Piatt, F. W. An
heuser and J. F. Cogswell resigned as
officers and these officers were
named: L. V. Fox, president and
general manager; D. W. Lennox, vice
1-residuent; C. E. Heaney, secretary
treasurer; E. S. Line, assistant secretary-treasurer.
The company was
declared bankrupt March 26, 1921,
and John H. Bckins named receiver
and A. C. Munger trustee.
Flaherty Again Named
Supreme Knight at
K.ofC. Convention
San Franc'sco, Aug. 3. James
A. Flaherty of Philadelphia was
named today for the seventh con
secutive time, as supreme kmght of
the Knights of Columbus, which is
in its 39th annual international su
preme convention here. His election
was unanimous.
The other officers elected are: H.
J. Carniody, Grand Rapids. Mich.,
deputy supreme knight; William C.
McKinley, New York, supreme secre
tary; Joseph Pclletier. Boston, su
preme advocate; Daniel J. Callahan.
Washington, supreme treasurer; D.
v . Buckley. St. Paul, supreme physi
c:an, and David F. Supple. San Fran-1
cisco. supreme warden.
William P. Larkin, New "York;
William J. Mulligan, Thompsonville, j
Conn.; John F. Martin. Green Bay.!
Wis.; Luke E. H-art, St. Louis, and !
John A. O'Dwyer. Toledo, were
named directors for a three-year j
term. ' j
A strong sentiment for the hold-
;ng 0f tile next SUprcme conventVm
in Montreal or some other Canadian
city has developed. The question
will ,e decided tomorrow.
Office of Honolulu Paper
T - 1"1 . 11 T "Ifl1
is LFesiroyeti oy Large nou
Honolulu, i. H., Aug. j. 1 lie ot
fice of the Pacific Times, a Korean
language newspaper, was wrecked
and five Koreans injured in two raids
on the office. The disorder started
in an altercation between the staff
of the newspaper and a group of
women who came to protest against
an article they considered , an attack
on the Korean Women's Benevolent
society. They were expelled from
the office, but later their husband's !
took up the dispute and a second dis
turbance ensued. Ten persons were
Copper Who Pinched
Bryan for Speeding
"Fired" From Force
Waukegan. HI.. Aug. 3. L. B.
Congdon, village marshal of Antioch,
III., who recently arrested William
Jennings Bryan for speeding as he
was hastening from Delavan, Wis.,
I to Waukegan to fill a lecture date,
; has been "tired tor his cfiorts to
enforce anti-spcediug ordinances.
I He was discharged today by Frank
I King, village president, and as a re
I suit four of the six members of the
council have resigned.
i The council recently passed an
! anti-speed ordnaancc. J. tic constable
J enforced it. Motorists complained I
I and made threats to President King
: that unless "the highwayman in mar
shal s garb retrained lrom turther
activities they would divert the tour
ists trade to other routes. King
demanded Congdon's resignation.
Congdon refused.
Charges Made by
Hitchcock Cause
Of Senate Clash
Nebraska Member Declares
Harding "Ordered Slaugh
ter' of Norris Agricul
tural Export Bill.
Washington. Aug. 3. Assertion
bv Senator Hitchcock, democrat,
Nebraska, that President Harding
had "ordered the slaughter" of the
Norris agricultural export credit
bill started a political clash in the
senate today, republican and demo
cratic senators coming to the de
fense of the pending committee sub
stitute bill. .
Republicans had criticized demo
crats during the Wilson administra
tion for yielding to the president's
"dictation" and now were following
the same course, Senator Hitchcock
said. He referred to the president's
opposition to the soldiers' bourns bill
as well as the Norris bill and said
the difference between the "inter
ference" of presidents Wilson and
Harding was that Mr. Wilson took
affirmative action for legislation
carrying out party pledges while Mr.
Harding followed the course of
"negative dictation" to defeat meas
ures to which his party was pledged.
Senator Kellog, republican, Min
nesota, author of the original ad
ministration substitute for the Nor
ris bill, said that apparently the
democratic senators supporting the
committee substitute also were
yielding to dictation. He said Sen
ator Hitchcock was making "a po
litical speech."
An agreement limiting speeches o
10 minutes was reached in the hope
of a final vote today.
Senator Hitchcock urged his plan
for a "bank of nations" as an in
ternational clearing house for com
merce with all responsible nations
having stock in the bank. An "in
ternational dollar" might be pro
vided, he said, to curb gambling in
exchange fluctuations.
Armed Citizens
Join in Search
Youtli, Kidnaped and Re
leased Month Ago, Disap
pears on Eve of Hearing.
Muskogee, Okl., Aug. 3. Police
last night armed 300 civilian volun
teers, following the disappearance
Malcomb . Etheridge, 17, who had
been tinder police protection since
his kidnaping a month ago.
Etheridge left the home of George
Sherrod, his uncle, who is a police
man, during the afternoon, intending
to go to a theater. He has not been
seen since.
A month ago Etheridge was
robbed in a gas filling station "where
he was on night duty. Three days
later he was kidnaped and found 24
hours later bound and gagged in an
abandoned shop. Two weeks after
that affair Billy Ware, alleged sus
pect in the kidnaping, was seized by
masked men and was said to have
revealed to them information leading
to the arrest of Etheridge's ab
ductors, i
Police today expressed tlie belief!
that he had been killed. I
Tl.. I - 1. -1! . - , . , , 1
x ui ice ueueve lie was taken ly
desperate men, made more daring by
the fact that the two men and a wo
man held for the original kidnaping,
are scheduled for preliminary hear
ings in city court today.
Famine Conditions In
Volga District Serious
London, Aug. 3. Famine condi
tions in the Yolija provi nces of
Russia arc very serious. George!
Chitcherin, bolsheviki minister oi
foreign affairs, declared in a wire
less dispatch to Vienna, says the !
Daily Herald. However, he is said;
to have declared that "the foreign j
capitalistic press is wildly txaggcrat- j
ing the facts to suit its own purpose." i
The Petrograd region is declared '.
to not have been seriously affected. I
Several ships are unloading for
Petrograd, says a dispatch to the
Daily Mail from Bjorneborg. a town
in Finland, and more food is arriving !
from Keval. j
Red Cross Officials Deny !
Charges Made by France;
Washington, Aug. 3. Officials atj
American Red Cross headquarters
asserted that charges made at Riga
by Senator trance that Dr, Edward
W. Ryan, American Red Cross com
missioner of the Balkans, instigated
the Kronstadt revolution were with
out foundation. Neither he nor the
American Red Cross gave any aid
to the Kronstadt revolutionsists, it
was sa'd. officials adding they be
lieved the charge to be traceable to
a bolshevik propaganda wireless
message dated March 2i, asserting
that the international and American .
Red Cross were contemplating help-'
ing the revolutionists.
Ti -Sv0?v? l & m lfl''iiVmTn;n-,inii.iriTn..17ini ' (
iMmte-ze'. imes!&m?m wminm,M mmrrmMm,xt.:
Labor Unions
Rap McKelvie
And Builders
State Convention Criticizes
Act of Employing $25,000
New York Man as Archi
tect for New Capitol.
York, Neb., Aug. 3. (Special Tele
gram.) Governor McKelvie and the
Lapitol bunding commission were
severely criticized at this morning's
session of the Nebraska Federation
of Labor for selecting an architect in
New York at a salary of $25,000 a
year with an allowance of seven
years to complete his work in draw
ing up plans for the new capitol
building at Lincoln.
The federation alleges further that
the office of the architect is main
tained in New York with a greater
expense to the state when consul
tations and information pertaining to
the plans and construction must bo
had immediately. Consequently the
labor federation argues that Nebras
ka should be for Nebraska and taxes
paid in by the people should be paid
out in Nebraska.
The governor was criticized again
in the middle of the session when the
point was made that the 1920 statutes
were sent out to a Missouri concern
to be printed when many plants in
Nebraska were equipped with ma
chinery and labor to handle the
propositions.
Blame Governor.
The federation claims the gover
nor should have used his influence
and power to prohibit such conduct
on the parties who had charge of this
business.
The federation further alleges that
the governor allowed the state to
hire a man at enormous salary in
Missouri to revise the statutes when
Nebraska is full of capable lawyers.
The printers' 44-hour a week ques
tion arose and was discussed and rc
fered to the resolution committee.
A resolution was introduced be
fore the house relative to goods
manufactured by the convicts at the
state penitentiary and urged the
assembly to endorse the action
as was given out in the
house roll and bill under con
'suleration by the last legislature.
The bill deals with .merchandise be
ing transported from one state to
the other and the federation claims
that convict goods should be con
trolled, according to the laws gov
erning the state in which the goods
are transported.
For Disabled Vets.
National and state legislation for
the rehabilitation of disabled war
veterans was endorsed and apprentice
rules were recommended waived in
assisting in the work of replacing dis
abled men in the ranks of labor.
President C. P. Birk of Grand Is
land delivered the presidential ad
dress at the assembly this afternoon
and appointed committees to report
at tomorrow's session.
The election and final session will
be held tomorrow.
Small Brands Indictment
As Plot of Big Interests
Danville, 111., Aug. 3. Gov. Lcn
Small in a speech last night de
nounced his indictment by the Sang
amon county grand jury as a plot
of the "big interests" and demanded
to know why Attorney General
Brundage and State s Attorney Mor
timer object to his being tried in one
other county iii the state outside of
Sangamon.
"Why doesn't Sheriff Mester ar
rest me here?" he demanded. "I am
ready to he arrested in any county
in tlie pate outside ot bangamoti
county.""
Poisoning the Well
fOopyrifht: 'lMxTfix Tba CWoao Tribunal
Hearst Scored
By Labor Chief
Gompers . Denounces Cam
paign as Attempt to Smash
Union Movement.
Randolph Hurst is scored and a
tribute paid to John L. Lewis in
a reVicw by President Gompers of
the work of the Denver convention
in a leading article in the August
number of the American Federation
ist, the official organ ot the Amer
ican Federation of Labor.
Denouncing the Hearst campaign
against him as a villainous attempt
by outside interests to control and
smash the . labor movement, Mr.
Gompers asserts that such influences
"know now the impossibility of
wresting from the workers the con
trol of their movement, the selec
tion of their officers or the deter
mination of their policies."
"For months prior to the conven
tion," says Mr. Gompers, "a cam
paign of villification and misrepre
sentation had been carried on by
the Hearst newspaper?. It had been
their effort to create among the rank
and file of our movement a distrust
of the officers and to bring about the
defeat of the president and other
members of the executive council of
the American Federation, of Labor.
"The Hearst and other .interests
which Were served by the Hearst
campaign would have been satisfied
with any movement that could have
encompassed the defeat of these of
ficers of our federation. Thus that
one of the delegates to the conven
tion, aspiring to the presidency, as
he had a right to do, was a candi
date for election to that exalted
office, docs not in any way mean
that he was the chosen instrument of
Hearst or any other interest."
Norris To Take Long
Rest in Wisconsin
Washington, Aug. 3. (Special
Telegram.) Senator Norris, who
was reported considerably better to
day, will leave tomorrow with Mrs.
Norris for their out-of-the-way camp
iu Wisconsin, where the senator ex
pects .to remain until cold weather.
For obvious reasons the postoffice
address of the senator is withheld
as his physicians have counseled
complete rest and the Nebraska
statesman needs it in ample measure.
Harding Orders Prohe of
U. S. Court at Shanghai
' Washington, Aug. 3. Upon rep
resentations made by W. F. Fleming,
an American attorney of Shanghai,
President Harding, it was learned to
dav, has ordered investigation of the
United, States court there. The crit-i
icisins were placed before the State
department some time ago, during j
a visit oi Mr.. Nem.ing here.
Subsequently C, 11. Holcomb, the !
district attorney 1 of. the court, was!
received at the State department. '
Upon his return to Shanghai, -.Mr: j
rlemuig was arrested on a charge of
libel upon complaint, it is understood,
of Sterling Feffendefj, a former part
ner of the district attorney.
U. S. Prisoners in Russia
Already Have Been Freed
Riga, Aug.' 3. (By The Asso
ciated Press.) American " prisoners
in Russia already have been released
from confinement, according to un
official reports at the bolshevik le
gation prcs bureau here today, but
there was no word as to the number
released or when, how, or where
they will be delivered A:ross the
border,
In NEWS fflvl
! Creditors Plan
j N. S. F. Company
Reorganization
Bankers at Chicago Meeting
Name Committee to Work
In Co-Operation With
Stockholders.
Chicago Trilmne-Omnha lire leased Wire.
Chicago, : Aug. 3. Bank creditors
of the Nye-SchneiderrFewler com
pany, grain' dealers, today named a
committee to formulate a plan of re
organization. A stockholders' com
mittee, also is working in co-operation
with the bankers.
Ralph Van Vechten, head of the
committee and vice president of the
Continental and Commercial Nation
al bank of Chicago, believes reor
ganization may be effected in time
for the company to resume operating
during this season's crop movement.
Other members of the committee
are: E. U. Mitchell. Lincoln, Neb.;
C. H. McNidef, Mason City. 'la.;
F. H. Davis, Omaha; E. E. Brown,
Chicago.
Walter Head , and John W. Gam
ble, representing four Omaha banks
involved, the Omaha National, First
National, United States National and
Merchants National attended the
meeting today.
Former Omahan, Who
Escaped From Insane
Hospital, Recaptured
Minneapolis, Minn.. Aug. 3. (Spe
cial Telegram.) Frank McCool, un
der sentence of 30 years for com
plicity in two Minnesota murders,
who escaped Monday night from the
state hospital for the insane at St.
Peter was captured today by a mo
torist near Waseca, Minn., after he
had asked for a ride. The motorist
proved to be a probation officer.
After he beat three men into un
consciousness at the hospital and
jumped from a third-floor window,
McCool was sought in the woods by
an armed posse of 100 men.
'McCool's wife lives in Omaha and
it was believed he was headed in
that direction. He was arrested in
Omaha in 1917 and confessed there
kto being an accomplice in the two
killings.
Officials of Baltimore
Coal Exchange Indicted
Baltimore, Aug. 3. The officers,
directors and individual members of
the Baltimore Coal exchange were
indicted by the grand jury today on
charges of making a monopoly
through a combine to manipulate and
fix the price of anthracite coal. The
evidence placed before the grand
jury bv Mate s Attorney t.each in
dicates' that the alleged combine was
formed last August 15.
The Weather -
Forecast.
Iowa and Nebraska Fair Thurs
day and probably Friday; wanner
Thursday.
Hourly Temej-'eratures.
5 a. in 2 j t p. m . . . .
A b. m 61) I P. m . . . ,
t a. m (Ml j 3 p. m . . . .
S a. m 70 4 p. m. . . .
tt a. m It A p. m. . . .
10 a. nt 7S I p. ni
It a. m "1 ! 7 p. ni
IS noon 7 18 p. ni
Highest Wednesday.
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ntib 1'lntte Valentine .,
Des Moines
Street Cars
Stop Today
Auto Bus System Is Only
Means of Transportation
For 105,000 Citizens in
Iowa Capital.
To Sell Traction Plant
Des Moines, Aug. 3. (Special Tel
egram.) Des Moines is making prep
arations today to carry its 105,000
daily car riders to and from their
work without street railway trans
portation. The cars cease operating
tonight under court order and the
entire plant and equipment of the
traction system will be sold under
foreclosure sale.
The city council today mobilized
an emergency force of motor busses
which will start operating under spe
cial licenses Thursday morning over
all of the abandoned car route. It
is claimed by the bus men that with
in 24 hours enough motor busses
will be in operation to carry at least
75,000 of the car riders daily and by
the end of the week the entire city's
transportation will be handled by
motor.
In organizing the temporary motor
busses the bus owners are moving a
step nearer toward their goal of mak
ing Des Moines a city served only
by standard motor bus equipment.
Want Long Franchise.
They asked that the city council
grant them a five-year franchise and
in return to put on adequate bus
service in every section of the city.
It is claimed that they will serv
the city even more thoroughly thar
the electric cars because of the bil
ity to arrange flexible routes to sub-,
urbs hitherto untracked.
In cases where the car lines liav
traveled routes yet unpaved the coun
cil is considering employing motor
busses with flanged wheels to oper
ate over the street car rails and con
nect up with the other bus routes.
It is still doubtful, however,
whether the city will enter into the
desired agreement with the bus in
terest because of the possibility ot
resumption of street car service after
sale of the system.
In any event Des Moines is bound
to be without street car service for
at least a month. This is the dec
laration of attorneys who are. wind
ing up the affairs of the defunct com
pany. Notices must be potted in
forming defendants and other credi
tors to come into court for account
ing. This will take one month. The
I next month will be consumed in ad
vertising and conducting the sale.
Interurban Operating.
An auction sale or submission of
bids for the property are the two
methods that can be followed in sell
ing the property. The court can re
ject all bids and readvertise the prop
erty for sale, if it sees this is best
for the interests of the creditors.
The interurban controlled by th'i
same interests as the Des Moines
city railway ar.-i deriving power from
the same piant, will not be required
to shut down at this time under the
terms of the court order. Although
the power plant will go in the sale
arrangements are being made for the
purchase of power from other elec
tric railways coming in here.
One auxiliary power plant owned
by the street car company will be
kept in operation to handle the inter
urban business.
The total outstanding bonds of the
company is $4,875,000. Debentures
and notes bring the total indebted
ness of the company up to $7,500,000.
Approximately 700 persons, employ
ed by the company, will be thrown
out of work when the cars are taken
to the barns tonight.
The report that the Illinois Trac
tion system, which is the McKinley
interests, operators of many public
utilities, might purchase the property
is denied by Charles Bradshaw, local
counsel for the concern.
Bill to Authorize
Distribution of War
' Relics Recommitted
j Washington, Aug. 3. After five
hours' of debate a senate bill author
izing distribution to states and mu
nicipalities, of cannon and other war
materials captured by the Ameri
cans from the Germans, was recom
mitted by the house to the militarj
committee by a vote of 103 to 9.
A section appropriating $400,000
for the distribution was eliminated
on a point of order by Representa
tive Garrett of Tennessee, acting
democratic leader, but the house, by
a vote of 126 to 120, immediately
rejected an amendment to require
communities receiving the captureir
articles to pay all transportation and
packing charges.
Chairman Kahn of the military
committee, reported that 84,0(10 tro
phies, including 70,000 rifles, 10,000
machine guns and 2,200 field guns
and trench mortars, were in storage.
Adhesion of Ulster to Plan
For Peace Delays Answer
Dublin, Aug. 3. (By Ihe Asso
ciated Press.) The sole reason for
the delay in the Sinn Feins reply to
the government's Irish peace pro
posaLs, it is authoritatively stated,
is the attempt being made to secure
the adhesion of Ulster to the peace
plan before resuming tin negotia
tions with Premier Lloyd George,
so he could be met by a united Ire
land. Two Hanged in Canada
Toronto, Aug. 3 Roy Hotrum
and William McFaddcn were hanged
today for the murder of Leonard C.
Sabine last March when they tried
to rob his drug store. Neither ut
tered a word as they were led to the
scatfold. During the trial each ac
cused the 'aMlier oi being tlie murderer
il
