The Omaha Daily Bee
VOL. 61 NO. 42.
A
tare Acts
In Omaha
Failures
Attorney General Asks for
Grand Jury to Investigate
Blue Sky Promotion
Schemes Here.
Postal Laws Violated
.A promise that staU action will
te taken by September 1 against
principals in big stock-selling cor
porations through which Nebras
kai.a have lost millions of dollars
was made yesterday by Clarence A.
Davis, attorney general of Nebraska.
At the same time that he gave
out a letter addressed to Judge
Troup, requesting him to call a
meeting of district judges at once in
order to impanel a special grand
jury to investigate these cases.
Davis made known the following
facts:
That he holds evidence sufficient
to convict 12 to 15 officers of de
funct companies for embezzlement
and misuse of corporate funds;
Damage Suits Possible.
That there are three times as
many more directors, attorneys and
other prominent men who "winked
at," even if they did not actually
. profit by fraudulent transactions,
against whom he can obtain evi
dence;
That stockholders who suffered
heavy losses in several bankrupt
concerns have sufficient grounds,
in his opinion, to recover damages
from directors in whom they re
posed trusts;
That three or four involved com
panies were unquestionably con
, ceived with only fraudulent promo
' tion intent;
That federal authorities will co
operate with the state in prosecut
ing the cases.
Judge Troup ' will call a confer
ence of district judges the middle of
this month to consider Attorney
General Davis' request for" the im
paneling of a special grand jury, the
judge . announced at the end of a
lu. cheon engagement with the at
torney general yesterday noon.
"I can't call It sooner because
Judge Redick and Judge Wakeley
are out of town," he said.
Troup will vote in favor of im
raneling the grand jury, he inti
mated. Assures Prosecution.
Should the district judges for any
reason fail to call a grand jury, the
attorney general asserted he would
begin prosecution of the cases htm-
'I can proceed against at least a
?ozn of them myself directly, but
the mass of evidence and its variety
is such that it should best be han
dled by a grand jury," he explained.
He explained the federal angle in
the same way.
"We could prosecute about IS per
cent of these cases easiest on
charges of using the mails to de
fraud, but 85 per cent would be
best handled through the district
court."
"What we need is a wholesale
clean-up of these qustionable enter
prises," he emphasized.
No Estimate of Losses.
Davis declined to estimate the
amount of money lost in corpora
tions which have failed recently.
"The actual loss by embezzlement
is not large but the loss from gross
mismanagmcnt and misuse of funds
is enormous. I couldn't begin to
estimate it," he declared.
Hundreds of lawsuits, promising
to keep all the legal talent of Ne
braska busy for months to come, will
probably grow out of these cases, he
admitted.
Action in Three Weeks.
Asked whether he would not re
quire a large array of assistants in
jroicctiting these cases, Davis re
plied that he would take up that mat
ter as soon as the judges decided on
impaneling the grand jury.
"Wc want to begin action within
three weeks." he said.
Davis will be in Omaha almost
constantly from now on in handling
He spent the whole afternoon
Wednesday with auditors working
on the books of various concerns.
Section Hand Slays Pal
i.icmt lasts.
While Asleep in Bunk Car
Mitchell, S. D., Aug. 4. Theodore
Thierick, a Roumanian section hand,
smashed in the head of his pal, An
ton Skokan, while he slept in his
bunk house near the Chicago, Mil
waukee & St. Pa:il railroad sta
tion about 3 o'clock this morning,
went back to bed in his room a few
feet away and slept until daylight
and then spent an hour searching
for a policeman to gi'-e himself up.
The murdered man, ' a native of
Poland, was found at 5:30 a. m. by
Mike Kulihowski, who shared the
house with Thierick and Skokan.
The -murder is said to have re
sulted from a quarrel over the na
tive countries of Skokan and Thie
rick. i r
All Americans Hld by Reds
Are Reported as Released
London. Aug. 4. (By The Asso
ciated Press.") The London head
quarters of the American relief ad
ministration today announced re
ceipt of information that all Amer
ican prisoners in Russia have been
released and are now leaving that
country.
Sixteen Killed in Wreck
Vladivostok, Aug. 4. In a collision
between a passeDger and a freight
train today near Nikolsk 16 persons
were killed and 18 injured, among
them a few Japanese. The collision
was said to have been caused by
bands of partisans who have been
engaged in sporadic hostilities in that
resrioo.
lUni m 8a-CliM
OmN P. 0. Uadw
State to Prosecute
Principals, He Says
Clarence A. Davis.
Text of Letter.
Attorney General Davis, in asking
the Douglas county district judges
to impanel a special grand jury to
investigate, cases of corporate mis
management in Omaha, condemns
business and others prominent . in
the community who have permitted
their names to be used to cloak
fraud and . deceit. He laments the
lack of state authority to supervise
such corporations, prior to 1921, and
points out that all or the companies
now in trouble were licensed to do
business under the law of 1917, be
fore the present state administra
tion.
The letter follows:
"My Dear Judge Troup:
"I am directing this letter to you
as the presiding judge of the district
court for Douglas county, Nebraska.
"For several months past rumors
and hcresay reports have been rife
that the officers of certain Omaha
corporations have been guilty of cer
tain frauds, embezzlements and mis
application of corporate funds. The
investigation which has been quietly
under way for months by the depart
ment of trade and commerce and the
assistant attorney general have been
reduced to final reports of auditors.
"The making of such an investiga
tion is beset with difficulties little
realized by the uninformed. Under
the Nebraska law neither the attor
ney general nor the county attorney
has power to compel witnesses to
testify prior to, the filing of a com
plaint. .
Information Concealed.
, "Furthermore, contrary to the
popular conception, neither the state
nor any of its departments have the
power to examine or investigate the
management of corporations, except
banks and insurance companies. No
state in the union has ever under
taken systematic examination and
control of ordinary corporations,
both because of the enormous ex
pense involved and because of the
heavy burden thus laid upon busi
ness. The only information avail
able to us has therefore been from
private sources or from the directors
of the companies themselves, or from
the receiver in case of insolvency. In
practically every case where a pro
motion enterprise has failed I have
immediately communicated with the
receiver and have, been informed
that there was little basis for
criminal action. Later " reports of
the auditors have, however, brought
me to a contrary conclusion.
"Some uninformed sources have
been inclined to feel that the state
bureau should have prevented these
failures. You and I are aware that
the securities act, (blue sky law)
never gave this bureau any jurisdic
tion whatever over officers, policy
or management except over the sale
of stock. When the stock was sold,
powers of the bureau were ended;
ia fact, the failure of the legislature
of 1917 to invest the bureau with
a 'follow-up power' to supervise
management ,was the greatest defect
in the law. This follow-up power
to examine companies, to investigate
their affairs, was placed in the law
at the last legislative session in bills
drawn by my department. It is
perhaps not amiss to say that not a
single one of the dozen companies
whose failures are responsible for
the present agitation were chartered
or licensed to sell their stock by the
present state administration, . and
that all of them received their au-
(Turn to Page Two, Column Three.)
WORLD'S GREATEST
DETECTIVE CASES
He was one of the most
patient of detectives. Asso
ciates said of him that when
he got on the trail of a man
wanted by police he never
got off it until he had put the
man safely under lock and
key.
No man was ever more
feared by criminals and none
ever had less fear of them
than
"THE TERROR"
His courage, intelligence
and indefatigable pursuit of
criminals made him superin
tendent of Scotland Yard.
The story of how he brought
about the arrest of an un
usually ingenious and much
wanted criminal is told in
another of the series, "The
World's Greatest Detective
Cases," in
NEXT SUNDAY'S BEE
Tx at NrW. MHW
Mttttr Mar M. IMS. tt
Act t Mtrak 1 117.
Substitute
For Norris
Bill Passed
Senate Adopts Administration
Plan for Supplying Aid for
Exportation of Agricul
tural Products.
Measure Sent to House
By The Associated Press.
Washington, Aug. 4. Another
farmers' relief measure, the adminis
tration plan for government aid in
supplying credit for exportation of
agricultural products, was passed by
the senate today and sent to the
house.
The bill was a substitute for the
original Norris bill and provides for
the war finance corporation to furnish
export credits. The Norris bill,
which proposed a new government
credit organization, was laid aside,
and the substitute, in charge of Sen
ator McNary, republican, Oregon,
for the agricultural committee, was
passed without roll call.
Original Draft Adopted.
The substitute was drafted by Sec
retary Hoover and Director Meyer
of the war finance corporation. It
was adopted virtually intact, the bill
authorizing the war finance corpora
tion to make loans to agricultural
associations, banks and trust compa
nies. The bill makes no change in
the corporation's cash capital of $500,
000,000, but reduces from $3,000,000,
000 to $2,000,000,000 the authorized
maximum of bonds it may issue.
, Through loans to banks on agri
cultural collateral it is said that the
bill's influence will be mostly felt by
expansion of credit availabe to farm
ers. .
Riders Rejected.
The senate rejected riders of west
ern senators to extend privileges of
the federal farm loan system to en-
trymen on government reclama
tion projects. Assurances for future
action in a separate bill, however,
were given.
Senator Norris, republican, Nebras
ka, chairman of the agriculture com
mittee, who initiated the credits leg
islation and who collapsed a week
ago after a speech criticizing the sub
stitute, was not present tor the vote
today. He left tonight for a vaca
tion in an effort to regain his health.
Ex-Soldiers and
Bandits Battle
One Dead, Four Injured in
Gun Fight on Kansas'
Train.
Wichita. Kan., Aug. 4. One man
is dead, another dying, a third miss
ing and three others injured as the
result of a gun fight between train
bandits and former soldiers of the
Tenth United States cavalry on a
moving freight train northeast of
Wichita.
Men were thrown, fell wounded, or
jumped from a speeding Rock Island
train at points over a distance oi six
miles.
Two men thoueht to be members
of a trane terrorizing harvest hands
by nightly holdups, attempted to rob
a group of harvest hands and others
in a coal car.
Four neero ex-cavalry men m uni
form were among the harvesters, and
drew automatic pistols to defend the
rrnwd. In exchanee of shots one
of the ex-troppers was probably fatal
lv wounded.
The men, with bleeding faces, brok
en iaws and bullet wounds, limped
along the railway tracks between the
towns of rurley ana Kecni, or iay
where they had fallen beside the
roadbed.
Tht dead man and the missing
man are unidentified.
Five of the alleged bandits are be
ing held here for investigation.
Australia Rejects
Communication Plan
London, Aug. 4. (By The Ca
isHian Prpssl The Australian eov-
ernment has withdrawn, from the
scheme of empire communications
adopted by the wireless committee of
the imperial conference, but has
nrnmlwH tn rr-nnerate with the
other dominions in carrying out the
plan which has been adopted by the
committee to facilitate communica
tion and transmission of news re
ports between London and the
Dominion capitals, it was reported
here last night.
Premier Hughes wants direct com
munication between England and
Australia or at least a system with
only one relay. The scheme con
templates four or five relays.
Hayward Will Be Asked to
Explain Ship s Seizure
Washineton. Aug. 4. United
States District Attorney Hayward
of New York probably will be sum
moned to Washington to discuss the
seizure as a liquor smuggler of the
schooner Henry L. Marshall, out
side the three-mile limit off Atlantic
City. Assistant Attorney General
Goff said today that the Department
of Justice had the matter of calling
Mr. Hayward here under consid
eration.
Prince of Wales May Visit
Canada Again Next Year
London. Aug. 4. (Canadian
Press.) The prince of Wales may
be in Canada again in April of May
of next year. The Daily Mail states
that his tour of India will conclude
at Karachi March 17, 1922, whence
the prince and his party will return
home by way of Japan and proba
bly through Canada,
OMAHA, FRIDAY,
Fighting Is Reported
Among Chinese Troops
Peking, Aug. 4. (By The Asso
ciated Press.) Fighting ia reported
in progress today along a 10-mile
front 50 miles northeast of Yochow,
where forces from the province of
Hunan, affiliated with the southern
or Canton government, recently in
vaded Hupeh province.
The engagement was brought on,
the reports state, by orders from
General Wang Chan-Yuen, inspecting
commissioner of the provinces of
Hunan and Hupeh, that a general at
tack be begun against Hunan prov
ince, where his authority is not rec
ognized. The recent invasion of Hupeh by
the Ilunanese was begun with the
evident intention of ousting him.
The Hunanese halted their advance
soon after its inception, however, and
were said to be awaiting the arrival
of reinforcements from other prov
inces in the Yangtse territory which
object to military domination of this
territory by forces under the Peking
government.
Transportation
Woes Increase
In Des Moines
Bus System Inadequate to
Carry Workers Who Must
"Hoof It" Since Cars
Quit Running.
Des Moines, Aug. 4. (Special
Telegram.) Transportation difficul
ties continued to multiply here today
and it is now possible that this city
may be left with only a makeshift
system, entirely inadequate to cope
with the situation created by sus
pension of street car service at mid
night Wednesday.
Today being an abnormal traffic
day, owing to the fact that a circus
played in the afternoon and tonight,
there was no reliable gauge by which
to measure the effect of the cessa
tion of street car service.
During the early morning hours
there was a noticeable absence of
people on the streets, but as the time
drew near for the circus parade the
downtown streets were packed with
the usual parade crowds.
At a late hour today thousands of
men and women employed in the
downtown section of the city "were
either hoofing it" to their homes or
were riding in private cars with any
one kind enough to give them a lift.
Confidence in the ability of the busses
to handle the passenger traffic has
been completely shattered in the
mind of the public. Sixty-one of
these vehicles, operating from mid
iiigbt Wednesday, carried ,but one
tbird of the average number of per
sons who ride in the cars.
Loop District Congested.
For several hours after the. stores
and factories had closed, the loop dis
trict was seriously congested. Hun
dreds of disgusted citizens waited
and waited on the city's principal
street corners for the busses, but
these were packed to capacity and
left them "waiting."
To add to the woes of the public,
the city council has refused to grant
the bus operators either a five-year
or a one-year franchise. It had been
promised by the bus operators that
if such a contract was extended them
they would put approximately ISO
such vehicles in operation here, thus
insuring adequate transportation for
the city.
Apparently the council fears to
tie its hands by granting the fran
chise, as such action would make
resumption of service by the trans
tion company an impossibility.
Seeking Way Out.
The entire situation was brought
about by the city council's refusal to
eliminate the busses, which the trac
tion company claimed were respon
sible for its financial difficulties.
' Interest is now centered on the ef
forts of the city's leading merchants
to devise a way out of the situation.
These met late this afternoon, with
F. C. Chambers, receiver for the
bondholders. It is known they have
requested the company's executive
to file with them a brief statement
setting forth the minimum the trac
tion company will accept to resume
operations. Little, likelihood exists,
however, of a resumption of service
in the immediate future. Even if an
adjustment is made, the foreclosure
suit will have to be dissolved in the
federal court and a new franchise
granted the company. This would
consume at least two weeks.
Mayor Barton and other council
members failed to take any action in
the situation. They each issued press
statements justifying their opposition
to the car company.
Man Arrested for Murder
After Chase of 11 Years
Phoenix, Ariz., Aug. 4. George
Brown was arrested at his camp
near Globe, Ariz., yesterday, on a
charge of murder in connection with
the death of a deputy sheriff in
Atoka, Okl., in 1910. Sheriff J. W.
Phillips of Atoka, is expected to ar
rive in Globe today to take charge
of the prisoner, who is being held
in the Gila county jail..
According to information received
from Sheriff Phillips, Brown has
been trailed through Oklahoma, Tex
as, New Mexico and into Arizona in
the 11 years that have elapsed since
the deputy sheriff was killed, but al
ways before he has managed to elude
the officers.
U. S. Formally Requested to
Attend Council Meeting
London, Aug. 4. (By The Asso
ciated Press.) A formal invitation
for an American representative to
attend the meeting of the allied su
preme council, which opens in Paris
next Monday, was communicated to
the American embassy here this aft
ernoon through Col. De St. Alaine,
the French ambassador in London.
United States Ambassador Harvey
accompanied by a small staff, will
leave for Paris oj? Saturday t
AUGUST 5, 1921.
Chicago Man Held
As "Brains" of
Bluffs Robbery
John Worthington Said
to
Have Been Guiding Hand in
$3,500,000 Mail Theft
Last November.
Chicago Tribune-Omaha Bee Leased Wire.
Chicago, Aug. 4. Alva Harsch
man and John J. Epps, indicted with
John W. Worthington in the alleged
gigantic mail robbery trust, surren
dered today to federal authorities.
Melville Reeves, known as the "sky
scraper burglar, is reported on his
way to Chicago to surrender. He
has been spending his vacation in
the Sierra mountains and is motoring
back.
Colonel Clinnin of the district at
torney's office, said the government
had positive proof that Worthing
ton and his gang were connected
with the Dearborn street station mail
robbery here in which $350,000 in Lib
erty bonds were stolen. "Big Tim"
Murphy, president of the Gas House
Workers union, has been identified
positively as the field general who
directed that robbery.
The government says it also has
proof that Worthington was the
"brains" back of the $3,000,000 Sin
clair oil stock robbery in Chicago
and the $3,500,000 mail robbery at
Council Bluffs, la., November 13.
Epps is a real estate man and was
a defendant in the $1,000,000 Toledo
mail robbery, but was acquitted. It is
thought he had substantiated the
government information that Worth
ington financed the defense of the 11
men arrested for the Toledo job.
Samuel Block, who defended Epps at
that time, is also Worthington's at
torney. Harschman Bail Reduced.
Harschman denied any guilt in
connection with Worthington and
after he had been closely questioned
by federal attorneys, his bail was
reduced from $10,000 to $1,000. He
says his dealings with Worthington
were confined to the purchase of
some commercial paper for which
he paid $20,000 cash. Harschman
had been living in Milwaukee until
recently and says he came to Chicago
to give his children superior educa
tional facilities. The government
now considers him in the light of
a witness rather than a defendant.
Federal investigators announced
that they believed Worthington and
his agents have sent millions in de
posits to banks in Berlin, Paris,
(Turn to rage Two, Column pile.)
Scottsbluff in
Roto Pictures
A full page of exceptionally
good photographs from
Scottsbluff ii one of the
attractive features of The
Bee Rotogravure Section for
next Sunday. A panorama
of the downtown business
district and views of the
Lincoln hotel and the plant
of the Great Western Sugar
Company are included on
the page. An enlarged photo
shows a big group of Scotts
bluff business men.
The Rotogravure Section al
so offers a page of swim,
ming pictures, showing bath
ers enjoying Omaha's free
pools. The movie page pre.
sents a group of filmdom's
famous actors posed in the
makeups they used in some
of their most notable char
acter parts.'
By nm (I rur). Dally lad Sunday. 17. BO: Dally ealy. IS)
Suaday, ti.K: to point! la Uallid Slatat, Caaada and Maaloa.
Her Light So Shines
Omahan Named
New President
Of Labor Body
Jonas Wangher Heads Nebras
ka Federation; 1922 State
Convention To Be
Held Here.
York, Neb., Aug. 4. (Special Tele
gram.) Jones Wangber of Omaha
was elected president ot the XMeDras
ka Federation of Labor here today.
Other officers are: F. D. Campbell,
Hastings, first vice president; Frank
Naracong, Lincoln, second vice pres
ident; G. A. Steiner, third vice presi-
dnt; W. b. Shubert, Grand island,
fourth vice president; lrank M. Cof
fey, Lincoln, secretary-treasurer; H.
Elwood, Lincoln, assistant secretary
treasurer. Omaha was selected as the place
for the 1921 convention to be held
the second Tuesday in August.
Urge Public Works.
A resolution urging all labor un
ions and labor delegates' bodies to
rcauest the state, county and munici
pal governments immediately to make
provisions to carry on such public
works as they now have under con
sideration was unanimously adopted.
Mrs. Myrtle Fries, representing the
Women s Label league of Omaha, in
troduced a resolution which was
adopted, calling attention of the wom
en of Nebraska to the great need of
organization and the good which may
come from co-operation with their
brothers in efforts to secure just and
equitable laws, state, national and
municipal.
In an address before the assembly,
Mrs.- Fries emphasized women's part
in labor unions.
The resolution dealing with suffer
ing in the far east was discussed
and adopted by unanimous vote.
Favor Irish Independence.
The assembly extended sympathy
and pledged support to the men and
women of Ireland to shake oft the
shackles of imperial government
which tended, directly or indirectly,
to promote hardships and indigni
ties." An open meeting was held last
night in the court room, where the
president, C. P. Birk of Grand Is
land, spoke on closer relationship in
the unions and the meaning of co
operation. Frank Coffey, secretary,.
of Lincoln, delivered an address on
the work the unions have done since
their organization.
Phone Collector Awarded
Theodore N. Vail Medal
Chicago, Aug. 4. August V.
Bronder, a collector for the Illinois
Bell Telephone company, has been
awarded the Theodore N. Vail medal
for unusual service for 1920, it was
announced today.
Brondcn, while making his rounds,
discovered a woman accidentally
locked in a closet by a little girl.
By the time he was able to free
her the woman was unconscious from
lack of air. He revived her.
U. S. Aerial Mail Pilot Has
Narrow Escape.From Death
Concord, Cal., Aufe 4. Lieut. R.
B. Levisee, an air mail pilot, narrow
ly escaped death here today in mak
ing a forced landing after his engine
went dead while he was 1,000 feet in
the air. Owing to obstructions near
the landing field, his machine turned
over on him and when he was ex
tricated, he said he was uninjured.
He was flying to Reno.
Boy Killed by Bomb
New York, Aug. 4. Twelve-year-old
Frank Cafaro of Brooklyn was
blown to pieces and his two brothers
were seriously injured by the ex
plosion of a bomb they found on the
federal quarantine grounds on Staten
island, and which one, of them hit
with, a. hammer,
Mrs. Buell Seeks
Assistant U. S.
Attorney's Job
Ashland City Attorney of
"Fireworks" Trial Fame
Submits Application;
Endorsed by Jefferis.
Washington, Aug. 4. (Special
Telegram.) That old song hit
which contained the words, "H
polished up the handles so carefully
that now he's a ruler in the queen's
navy," may have a moderate applica
tion in the case of Mrs. Irene C
Buell, now city attorney of Ash
land, Neb., who attracted notice by
her fearless enforcement of civic
ordinances governing the discharge
of fireworks on the eve of July
fourth.
Her activity in the celebrated "fire
works" trial following the episode
attracted much favorable comment
and it dawned on tl.e press and pub
lie of Nebraska that the state pos
6essed a likely candidate for assistant
United States attorney to succeed
Mrs. Annette Abbott Adams of San
Francisco.
Accordingly, Mrs. Buell prepared
and submitted her application to the
attorney general. Congressman Jef
feris today called upon Mr. Daugh
erty to offer his endorsement of Mrs.
Buell for the position. "Big Jeff"
was informed that no successor to
Mrs. Adams has yet been decided
upon, and was assured that Mrs.
Buell s qualifications would be con
sidered.
Mrs. Buell is a graduate of the
University of Minnesota and prac
ticed law in that state for eight years
prior to moving to Ashland. It is
probable that she will have the en
dorsement of Senator Kellogg of that
state. Mrs. Buell is a constituent of
Congressman McLaughlin and will
nave his hearty support in her can
didacy. She is endorsed by Mrs.
Emma Johannes, president of the
Woman's club of Omaha.
Sightseers Injured
When Bus Overturns
Denver, Aug. 4. Mrs. Fannie Don-
ohue of Oklahoma City and Miss
Hazel Hudson of Nauvoo, 111., were
probably hurt and a number of other
persons were less seriously injured
here this afternoon when a sight
seeing car loaded with tourists over
turned at Speer boulevard and
Broadway.
Mrs. Eugene Smith, Kenosha,
Wis., and her two children, Roberta,
5. and John, 11, also were badly hurt.
Others injured included Harry Jacob
son, Indianapolis. Eleven persons
were taken to hospitals.
The car swerved at the street in
tersection to avoid hitting a traffic
patrolman, according to the police,
and turned over.
The Weather
Forecast.
Nebraska Generally fair Friday
and Saturday; cooler Saturday and
in west and central portions Friday.
Iowa Showers Friday; Saturday
fair in west, showers in east; cooler
west and north.
Hourly Temperatures.
S a. nt.
A a. m .
...17
. . .r.j
...m
. . .
...w
. . .71)
...rt
t p.
s P.
1 s p.
4 p.
I S p.
I P.
7 p.
.. .77
...in
...H
...77
...HI
...7
...73
m. .
7 a. m . . .
ft . m . . .
a. in . . .
10 a, m. . .
11 a. m. . .
l'i noun. . .
Highest Thursday.
Chwrnn
SI)
....H4
....ft
...80
....!
.. .!
...oi
...D4
...04
,..
DaTrnport . .
Denver
1w Molnp.
IXdr City.
North rintte
Pneblo
Kapld City...
Halt Laka. ...
Hante re
Valentin u
THREE CENTS
Dope Sold
At Soldier
Hospital
j
Secret ServiceAgent Says Mop
phine and Cocaine Were
Peddled on Grounds at
Johnson City, Tenn. $
, , , . i
Walsh Asks Prosecution
By GRAFTON Si WILCOX.
Chicago Tribune-Omaha Bee In.I Wire,
Washington, Aug. 4. Snagged by
an unexpected display of congres
sional indifference, the Sweet bill
encountered still further delay while
the senate committee of soldiers re
l:cf listened to disclosures of the
most revolting nature yet revealed
in Connection with the government'"
neglect of disabled veterans. The
relief bill, although ready to become
law, it was discovered, is still lying
on the vice president's table awaiting
signature with no one in Washing
ton authorized to sign it.
Vice President Coolidge is in New
England and Senator Cummins, the
president pro tempore, is ill at At
lantic City.
Imminent need for enactment of the
bill was emphasized by further re
velations of serious conditions at the
Johnson City (Tenn.) hospital for
tubercular ex-service men. Last week
Col. Charles R. Forbes, director of
the war risk bureau, called this in
stitution "a mad house." Today,
Senator Walsh of Massachusetts
characterized it as a "hell hole" and
called upon the attorney general to
begin prosecution of the officers in
charge for malfeasance in office.
Detective Testifies.
Testimony adding shocking details
of conditions at Johnson City was
given by M. P. Mdlnerney, a secret
service agent in the employ of the
war risk bureau, who obtained ad
mission to the hospital and spent a
week there as a disabled ex-servico
man.
On the night of his arrival Mc
Inerney said he bought a bottle of
moonshine and a dozen morphine
tablets on the hospital grounds from
a peddler who boldly solicited him.
On the next night he visited an ad
joining "dope house" and purchased
"a block of snow" for $1. For the
convenience of patients unable to
walk as far as the "dope house,"
cocaine dispensers with needle in
hand, patrolled the hospital grounds
to furnish their wares to the disabled
veterans "at so touch per shot," he
testified.
An extensive "red light" district
is located close to the hospital and
in addition prostitutes loiter about
the grounds, he said. If the guards
drive them off, they merely move
across the street. Professional gam
blers watch the arrival of war risk
compensation checks with eager
eyes, and, aided by loaded dice and
marked cards, they soon fleece the
ex-service men of their monthly al
lowances. Forbes Urges Action.
About 850 patients are receiving
treatment at the hospital. It is under
the jurisdiction of the national home
for disabled volunteer soldiers, the
organization which has charge of
the homes for civil war veterans.
Colonel Forbes urged the commit
tee to enact legislation promptly
to place such institutions as the
Johnson City hospital under the jur
isdiction of the war risk bureau,
or under the veterans' bureau pro
vided for in the Sweet bilL
"Unless immediate action is taken
to correct conditions at Johnson
City, we will have as many casual
ties there fts we had in the world
from an equal number of men,"
Colonel Forbes told the commit
tee. In view of the probability of de
lay in getting such legislation
through congress, Senator Walsh
advocated prompt action by the De
partment of Justice and declare-!
that the country should be informed
about the "hell hole" to which it
was sending its disabled veterans.
An appeal may be made also to the
Y. M. C. A. and the Knights of Co
lumbus to help remedy conditions.
Hope was expressed either that
vice President Coolidge would -e-turn
from his vacation or that a let
ter would be received tomorrow
from Senator Cummins at Atlantic
City designating a senator to sign
bills until he recovers.
Chain Store' Candy Firm in
New York Reduces Prices
New York. Anor A a
J. l-J per cent in candv prices was
announced today by George W. Loft
Inc one of the largest chain store
candy firms in the city. This cut
" cioseiy atter that of the
Miller Canrlw rnnmn.. .1 :
, mc presi
dent Ot Which innn.m tL.t u:.
WMUCU mai ins
firm, along with several others had
ueen making JOO pfr cent profit.
Coincident with the announcement
ot reduced nrices it was tom. .u..
the wages of the Loft employes
would be reduced Uyi per cent.
Bandits Rob Postoffice
Messenger of $9,000 Loot
St. Louis. Aucr. 4 TKr Ko,,j:.
today held up and slugged Tommy
Fclaido. a oostnffir. mouK.r .
Wood River. 111., near here, and es
caped with three mail pouches, one
of which is believed to have con
tained $9,000 in currpflrw rcnciVnorl
to the Standard Oil refinery at
w ooa Kiver.
Senator Norris Leaves for
Summer Camp in Wisconsin
Washington. Aug. 4.(Spccial
Telegram.) Senator and Mrs. Nor
ris left tonight for their summer
camp in Wisconsin- to remain until
cold weather. The senator was very
much improved and hopes to stand
the journey without serious inconvenience,