The News
Ob
THE WEATHER
' Fair and warmer Satr!ij
Snndsy, pertly cloady.
and
WATCH LABEL
a Vmi mm-. swwwsl
Sr fcsfm r itM tm svsM
slat e
server.
VOL CXI. NO. 59.
SIXTEEN PAGES TODAY.
RALEIGH, N. C, SATURDAY; MORNING, FEBRUARY 28, 1920.
' SIXTEEN PAGES TODAY.
PRICE: FIVE CENTS
ALLIED PREMIERS
YIELD TO WILSON
Never Considered Settling Ad
riatic Question Without Con-
suiting United States j
READY TO WITHDRAW
FORMER PROPOSALS
Invite President To Join Them f
In New Proposal To Italians
and Jugo-Slavs, But Say In
Event of Failure To Settle
1
London Treatv Is The Only ,
Alternative
Ixudon, Fib. 27. (By The Assotifited
Preas.) In their reply to the In.:
eomuiuniintloii from President WiUon,
Premiers Lloyd George and Millrnnd
declare they have never considered the
t pOSeiolJliy or secinii xnu Auimur tuii-
.... . . a . - ii . . t. . . i .
troversy without oiiuuning tiie views 01
the United States goveinmoht.
The reply, whieh is dated Febrnaiy
6, comments upon the : l-o :, ' of a
United States repr'neiitatie : t fee
negotiations whieh, n.-eor.iiiig l!
eonierees, ha. proved an ob.tael?
agreement.
The premiers oWivo as . Cn- of
tho greatest importance that Preside n:
Wilson eiprfsses a willingness to a
eept any setlleincnt "mutually auref
able to Italy and Jugoslavia regardiiVr
their common frontier in the Fi'.iiw.
region, provided suelt agreement if nor
mado on the basis of compensation el- -where
a tthe espenj.? of tuitions of a
third power."
Withdraw Proposals.
This, (he premiers ngree, would be
an ideal way of settling the question
and they express willingness to do their
Utmost to resell a settlement by th'.F
road.. In order to facilitate this pro
eesa tbev arc ready to withdraw the:'.
i . ts o...,i I
proposais 01 wvymuvx. v nun
2(1, beriusc they believe if the parties i
principally concerned, believe the Allied j
mnd" associated imwers committees to
upporiing mem in any par,. cur . - .
lution t will be more diflieuii 13 secure
a. voliintarv 'agreement
vomniarj agrtt.nu.uu
St tho President to join with then'
M., . : .1. .... .r.-... .. ....I i iii- .
formal proposal to tuo imi-
Jugo-Hiav jovernnjeiils to negotiate an
agreement oa tha basis of withdrawal
ef all prerioui proposals. If, however,
this attempt should prove unsuccessful,
the French and British i emlers agree
that the. United States, Oreat Britain
ill Fraiicc should ouee more consider
thfl, question in eotnuion, with Ihe view
c arriving at concrete proposal-.
,,te... Agree With President.
The premiers express appreciation of,
and agrcemeat with. President Wilsou's
Tiewa with regard to the future of the
Albanian people and say they aro will
ing to urge upon the governments in
terested that they should bring their
desires Into line with the American
iewpoint.
With, regard io-tnvtreirty- of London,
the premiers stats that its "secret char
acter" was due to military exigencies
preventing its publication during the
war,
London Treaty Alternative.
The premiers declare tliey canuot dis
guise that should no voluntary set
tlement of the Adriatic problem be at
tained the treaty of London would be
come the only valid alternative as far
as they are concerned. Italy has co
operated loyally, they say, in trying to
And a substitute for the pact and the
allies hope they will succeed in finding
iucU a substitute. ,
Creates No Surprise
Washington, Feb. 27c The invitation
ef the British and French premiers to
President Wilson to join them in s for-
mal nroposnt txrjthe Italian and Jugo-i
drlatio settlement on the basis ef the
withdrawal of all previous agreements-
-" " " ' ' " i
S.l,,.lt H. ..-,. iu. , nftir.lftl f I h 1 ,1 rr. .
-.'' . .
V?. .rr5i
t the at Department, is now before ;
no rresiueni ana n
reply is expoetc 1
a few days. Mean- I
refraining from any ;
to be made within a
. time. Officials are re
Hiseussion of it or or the 1 resjueut s
prolmble course.
j It wss pointed out, however tht while
N THEIR ANSWER
sanering to tue agreement or irecemu.-r,l(in Iei(.g.lUon saw Mr. Fosipt, nn of!
ninth, the President m his last rep r ,., fnM tn the President, and lui 1
to the prcmiers. had that, he would , fn ,ijn foP transmission to tho
. "of course, make no ob.ieetion to u e t-, Pr(il)(,,lti Iipgation think Mr. Max
t!cment mutually agreeable to I.Vl,v a 1 wcp-, chances for appointment excel-Jugo-Slsvia,
provided that such an 1 lt,n)
agreement is not made at the expense '. '
pf the nationals of a third power.' j Case Dismissed
If the premiers' proposal is accepted , p.,,,,,;. Va.. Feb. 27. Jos. T. Engle-
by tho President Italy ana jugo ciavm,
will have their first opportunity to un-j
dertake
selves.
a settlement bjtwecu them-
FORMER GOV. JENNINGS
. s t OF FLORIDA IS DEAD
" Jacksonville, Fla, Feb. 27. William
B. Jennings, former Governor of Florida
- died this afternoon in St. Augustine.
He bad been quite ill for some time and
was just returning fro Plnl B?ei
where be had been In hopes the warm
er climate would help him recuperate.
Governor Jennings was a first eousin
cf Wm. J. Bryan. The funeral will, take
place here Sunday. . ; , . ', ,
City ef Osssha Assign'.
Wilmington, Feb. 27.-The City ef
Omaha, secoad steel freighter launched
by the Carolina shipyard here, aud
which eompleted Its trial tests yesterday
with flving colors, lias been allocated to
the Gceen 8ur..SteamItip fompuny ror
"Vrvlc? between fcin Fruncisco and thelFrunk J. Bodgua, hit former- partite in
Orient, the United Stales shipping poara
announced tonight in a telegram to the' emmended life imprisonment.
Oeorge A. Fuller Company, owners cf jc!aiicd he shot and killed Hodge
tli shipyard.
BEGIN PREPARATIONS
TO RETURN RAILROADS
I Begional Staff a Will Turn Overj
Work To Corporations To
morrow Night '
i Washington. Feb." 27. -Ranto t. i
' ministration- officials lave liejan prep-;
motions fur complete contraction of the .
great wartime organisation into the
J body which will act M the liquidating j
. agency. Several hundred employe will i
I find themselves out ot jobs with the dc-.
K Z
1 All rogior.al .Mans tomorrow night will;
j turn over their work to tho proper cor- ;
j poration oflicinls in the respective re-
gioiis. Orders recently were issued gov
erning the method!! by whieh changes
in aeeuiutitig tuJ trniiafx'r of fluids will;
be made.
Mr. Itir.es, however, will still have
mtmoTmiB imi i if tr tn n t ondtiit! til deal
with after he reuses todirect operations
0 A ot ot labor rgnua: ;
tioua hnvo unsettled wsge demand be-,
for the Federal wua-e board.
1 06 Uivibio-n 01 la, nc-i-oiuiiiinj .in',
the director general's immediate stuff
largely will remain.
Pershing Is qualified.
1 linsinjf, Mieh., Feb. 117. tiencral IVr
shing was qualitied toduy to appear on
tin: Kejubliean ballot in Miehit.in"s
presidential preference primary April 5,
with tin) receipt by the Heeretary of
Slate of nominating petitions carrying
the required l'J signatures of his sun
porters. "
Lumberton Lawyer Finds It Im
possible To Run Against
Godwin This Year
VARSER STEPS OUT
OF CONGRESS RACE
Lumberton, Feb. 27. L. Ii. Varser, of ! In returning to privato life. Mr.
Lumberton, freely talked as a probable 1 Roper will wind up a long public ti
candidate for Congress from thojreer as the administrator of the great
"bloody Sixth," 6tated today that he i est tax collection agency ever organ
would not enter the race this year. Mr. ir.ed, w hich last year gathered approxi
Vurser suid th3t be found it impossible' matoly s.isW,000,000 in government rev.
,i iirrinun Ins rtrsnn:il aliairs in tllUG To 1
" ' : - - ,
before the primary in June, aud tbatss the wax emergency: caused abnormal I T thousands of spoetators were tin
consequently be would not he in the ! in. reaso in all Federal taxes and ncccs- "wre "f ,he t'm they were witness
rae. , Uitated the expansion of the bureau I drama of the sky, They saw a
- ; , , ... ...r ,
-.,,, ltml ,,,
wIiom name has figured prominently in;c()rnea chiefly with imports on nlcohpl
.i.ui ..j;.i.. . . 1 I
jtor Congress from this district kice .
ui tj v u liuaniu" mi. uhiumipiv u.,v.v4
tMo Iat elestion, wm no dou lit bring joy ,
to all who have alreaoy announced them-1 taxes ud into tks records of corpora
selves and nyvlol!HVXH. S,a? l'e ,.in-;tioDs aud partnerships Is take thir ex
clined to offer. '(n profits for prosecution of the- war.
The name of Mr. Varser has cansi;Itt ftllraiisteritig this t ask, Mr. Boper
uneasiness amoug other candidates and fu, original policy, as cxempli
their friends, for it is admitted that hai , fi(1;, llv hi, ,tatment that a man ouaht
he "coma ont he would have command- tlJ e ,,roa(j t0 w lx(,, ne soog'l
ed a strong and formidable following fi...;...! ,..nnfr.tin t hiiKiness
throughout the district. J he htate ot ,
Bobeson" would have been practically!
solid for Varser.
Mr. Vaiscr is not making any prom
ises fji to staying out of the race in the;
future, however, ami his name may bo a
thorn in 1Kb side of all candidates again 1
immediately after the next election,;
uiougu rears nave ucen removcu .or uiet,,,,, ,lB utiliicd the personnel and mn-
present. j ehiner.v formerly devoted to eollection
rrtWTIslllC Tfl ADPCCT i0' taxes to establish a prohibi-
UUflllrsUC. I U Annuo I ition enforcement section with branches
AND DEPORT RADICALS
Washington, Feb. 27. Arrest and de
portation of anarchists and other radi
! cal is continuing, Anthony Caminetti,
j commisisoner general of immigration,
' declared in his monthly report, made
i public today. During January, he rays,
2,797 warrants were issued, of which SOO
I were for. normal immigration cases, iu
eluding the apprehending of immigrants
c hiding the appreiienuing or immigrants i . . . " . . - - .
, v i . , ,i .. .....i. ci. i in the class of JssiS and the followini
who had entered the country under false - , V. " v
j i .5 ..k. e year married .Miss Im McKenxie, of i
declarations. The record number of;' . . v..i. r- r ' n" t
fy.- . t Pcotland county. ?ortli Carolina. Uis ,
warrants, was 3.067 in December,
During January the report said, 200
orders for deportation were issued, 219
warrants for arrest were cancelled and
44 cases- weM deferred.
fU A Ql 4TTTC nC PRaTIAN
BACK FROM WASHINGTON
... . . , ,t ., ,.. .1
t'Uarlotte. ten. Ui. narioue aeiega-
tion of buSiness men. which went to
Washington a few day. ago ?
fpT(, allthorities reasons why A. J. Matt.
wp of Htat ,10lM , nlember
of 1, Intstato Commerce Commis -
si(iI,; rrtllI.((.l, today. Delegation in -
;1.f, r..i .1 Whitk. E. O. Ander-
jr. M. tor. John M. Scott, Robert
n,; vv N- willard and E. R, Pree -
b hea(, cf fhe laeal piumt)tuj finn 0f
, , ad Brothers, indicted bv a
Federal grand jury two days ago on a
charge of manufacturing a copper cap
and arm for distilling purposes in vio
lation of the prohibition law, appeared
before. Federal Judge McDowell- today
and admitting the outfit was made in
his workshop, declared it was dons with
out! his knowledge. The ease was dis
missed by th judge.. -,:; -, .
: Lall la TrlsL '
Grand Rapids, M ch., Feb. 7. The
prosecution in the Newberry elections
conspiracy trial devoted today to bring
ing into the case the name of defendants
who played relatively minor roles in
the political activity of 1919. - . .
To defendants were quoted as having
admitted they paid their own eam
poign expnss with Newberry money
' Georgia Man Convicted.
Macon, Oa., FeW27. !ee Cross was
found guilty toninjit ct the mUrdcr of
me insurance dumbcs?. liw jury-rec,-
Cross
jot 'oa
September 26 ia self defense.
JOB AS COLLECTOR
Ei
NTERNAL REVENU
Formal Resignation Has NotiMaj. Schroeder In Plane Rises j Secretary Houston and Gover
Been -Received at White To a Height of 36.- j nor Harding Write Letters
House, However 020 Feet To Senator Simmons
NO ANNOUNCEMENT OF -
PLANS FOR FUTURE j
Has Long Record of Public Ser
vice; Recently In Charge
of Prohibition Enforcement;
Native of South Carolina;
Worked In Census Bureau;
Helped Wilson's Campaign
Washington, Feb. 27. (By .the Asse,;
ciated rressO Paniel C. Boper, Com
missioner of Inttrual Kevenue, has in
formed officials of his intention to re-
sigiuabortly. Although his formal res- 1
iJntt ion hid not l-en received tonight
igiitiuon naa roi oe n rrrrora 'ull"
at the WJiite House, the matter of his
Isueeessor is understood to be nnder cou
! siib-rat ion..
i lleyml the faet that he plain to re
turn to private life no information .
I to the future jelans of Mr. Roper was
. available here tonight, as the Commis-
:sioner was absent from the city. 1
i resignation,
ed will'"" become effective for sev
leral weeks, Mr. Roper having consented
to remain at the head of tho revenue
bureau until after income tax returns
I for the past year had been filed and tho
collection of such tares, the first in
stallation of which is due MTch K5.
is well under way.
Long Career; Big Job.
.ini:r. He ruu-iuon f!ammissioner of Jfl-
--- : ,T . , , . i
"--'ZZ . " ,
um, Tmuu...,,. inn, :l I rin,nfinTiH ni it - :
eiue reachiug iij tho Dockets of mil
i:on. i,,- citUen for iuere;'d income
interests and expressed the hoie that he
had been able to make tax paying more
popular than it was. Evasions of the
tas las were punished inexorably.
Enforced "Dry" Ui.
Mr. Roper's bureau was given the
tjisk of enforcing nation-wide prohibi
tion by the Volstead enforcement act
:in ,yerT a,flT H" "ain hn em,ht
puono ni in ins wors, asking mat law
abiding citizens generally assist in mall
ing the dry law effective.
A Sooth Carolinian
Mr. Roper was born in Marlboro j
ennntv. South Cnrnlinn. in 1mJ7. on,l ,
thronghout his long service in, Washing- The thermometer on Major Schroe
ton maintained his legal residence at 1 der's machine registered a tomieratTir
McColI, 8. C. He took the A. B. degree .
st Trinity College, of North Carolina, (Continued on Psgs Two.)
first public servico was as a member of
the (south Carolina legislature. Then he
came to the national capital as clerk !
to the Hcuate commerce committee. '
In 1900 Mr. Boper began ten years'
joxkfar.tha Census Bureau, which wns
to be fruitful of results of great im
portance to tho South. As an expert i
special agent he was engaged in gathr-T
. I ing information about the cotton busi-
--- - ,
nw
" l"""
uu.iik imi otiiiK vritDua 1,1 I
; iles turned .out at the ginneries; Later
1 ,,e "Pn series of reports oTre-f
1 7 T m v I
(Conllaued en Page Two.)
' UfiVC CM ITU CAUHDO
; MORt oMI I n rAVUKS
I nnrP nrePMiimau '
Luuur. nuLn vai wn I
Urges Adoption In Speech In
Senate; Article Ten Loom
ing Up Big .
Washington, Feb. 27. Adoption ef
the Loilg- . reservation to the pence
treaty, by which he I'nited States as
serts contn I over its own domestic af
fairs, was nrged ia the Senate today by
Senator Smith, Democrat, Georgia.
8enato Smith's endorsement of the
Republican leader's proposal came at
the end of a session, which was given
ovexlpiost entirely ta attacks nnoa the
tresty as a whole by irreeoncible op
ponent's to ratification.
In urging favorable action np-n the
reservation the Georgian nrged that
substitute presented yesterday by Sen
ator Hitchcock, ef Xcbr-iaka, the ad--'tfi!sn:io-
"-ei'cr, would amount to
r .r ml ment of the reaty
While the debate wsj W progress the
leader- on hoth sides mniie scwrate!
C3svcfces of the attitude of Democratic
senator to'rardaeceptanee of the cru
cial article ten reservation in the form
t went thrcugh Irejt NoveaiVer with the
result that both claimed te be g&inlng
strongthi Among the Reubjcr.ns r;
Jwas declared that only a few,more Dcm-
j'oerstie vok wou!d be needed to P sure i
j rstification, but the administration j
: Senators aasertcdr ratification would fail
. by a wide margin unless the Btinnblicaa
Jiirtlce tcs reservation was modified.
BREAKS
ALTITUDE
RECORD;. FALLS 5
SENSES NUMBED AND !
EYES FROZEN SHUT)
Sensational Peat Thrills Thou
sands at Dayton, Ohio; Air
plane tike Comet In Ele
nients ; Thermometer Shows
Aviator Encountered Tem
perature 55 Below Zero
I Psvtou, Ohio, Feb. 7. An airplane;
! carrying Major K. W. Schroeder, chief !
ltest"pi!ot at McCook Field, 1 day fell !
I over Cto miles after reaching an alti-
I tuda of feet. sid to be 0,020 feet j
! hirhrr than the world's record. Toniglit
MILES AND LIVES
higher than the world s record. Tonight, n..n. ff,ur,.,l
th. major is In a hospital suffer ng from Governor W P. O Bardtng, of the Fin
. ,.. . , ,-,.. ., . h ndness. Ut linor.l. sml Secretarv cf the I
Instruments on the machine indicate
that it fell more than flvo miles iii two t
minutes. While stil 2KW feet above
ths ground, the airplane righted itself j
ami blided to a graeetul landing. v tien ,
the piano settled, attendants who ruslieil
toward it found Major Pchroeder sitting
,h machine- nonarentlv lifeless.
For a brief time, residents of Dayton
were sure a comet had appeared in th
sky. They had -iitken the trail of
apor escaping from the machine, as it
sped downward, for a "stranger In tho
Heavens."
Thousands of persons gazed skyward
ratehing the plane, which had ascended
two hours before, plnnge downa.vrd.
&yea rnm on... I
n senses unmoor, mm uia i-s
- , , . . i , .
frozen shut in a temperature aaid to
hnvo been 7 degrees below 7.er0 !
Schroede regained'rarti.l consc.:.
ness when 2.000 feet above thwart!, in
.. .. j.,., n. ..n. ...i -.
from crashing to the ground out of
srs-ek of block silhouetted against the
. .t,-,,,,,i r,f
blue'. wh,,eh w"" "V , e " f-
vravish eolor. Gradnallv Uie object
- -. .....
n enlarged as it hurtled to the earth
Wljen. but a -few thousand feet ab6ve
those watering, they saw that It was
an airwlsus, turni Urn ttril aplm 11
was at this point that Majof 'Sehrafirr"
ffgained Control of his plane nd head
ed It toward MeCook Field. Here
Mjor Schroeder made a safe landing
mid collapsed.
He was blinded and Lis limbs were
numb, despite the electrreal'.y heated
suit in whieh he was encased. lie was
suffering from the effects of a lack of
oxygen. tVhen nearly seven miles
above tho earth, his oxygen tanks be
esme exhausted aud it was this which
robbed him of consciousness and caused
him to fall.
Condition Not Serioaa,
Mechanics and officers at MeCook
Field lifted Major Schroeder from ths j
plane and he was given first aid treat
ment, and later being removed to the
post hospitsl where it was said his
blindness will be only tesaporsry. It
will be several days before he will be
able to use his ayes, secording to Dr.
Howard . Dutrow, So- aye specialist,
called into consultation.
eive
SAYS
On I O
TREAT CITIZENS,
THE SAME AS ALIENS
Palmer In Speech Favors Laws
, .
To Deal With American!
- or-Radicalism
XwYork. Feb. 27.-etrengtheiung ef
federal laws in order to punish the
L , ... ... -ut-i, ,h. ,n.
Zl'AnlZ
-. .
jMucnsii i'aiuer in an miumj
4hJiai!yrk-County Lawyers' Asspe.ia-,
tion here tonight, Ths c'ondition de
scribed as the ultra-radical classTwar
i movement In the United Mates," he de
i e' red, "is tiie greatest menses taj the
. . ... J 1 rAr fit.
V eV
coimtiy.
Alrcadv." he asserted, "there are evi
dences of reorganization of the revo
lutionary groops so as to escape the ope
ration of the deportntioa statutes. Nat
uralised citizens who as individuals are
immune under the present laws, are tak
ing the lead, feeling safe by reason of
the difficulty 8T the government's mak
ing a ease under ths conspiracy
atatute." -
Those who perhaps lack the physical
courage to commit acts of violence, b'
incite others to do so, should be held
equally responsible, -he argued, with
those who actually commit acts ef vio
lence. . ,
Retards Settlement.
The chief evil of "red radicalism,"
Attorney General Talmer declared, "lies
in the fact that it will retard th peace
ful and orderly settlement of - recon
struction problems." Bo expressed the
opinion thnt it eenstituted no resl dan
cer to th government itself.
Referring to the results or the coun
try-wide raids on tsdicals, Attorney
General Palmer asserted that "what one
seemed like a serious mense of organ
ised revolution had" bee successfully
met." He expressed the opinion tht I
most of the ?,0W aliens arrested wouiu
bt defterted. ' ."'. v -i. -
' "We must teratTs't false ideas by ar-'f,
"Etiment and- rrieka' Atm.'titen character
by
education," he siid, "bnt before ar-
gn
gnmsnts can persuade or education re
form, there roust be instilled respect
for onr institutions the law must be
oteved gnd order vast bt malaUlaed."
FEDERAL RESERVE
T
E
CONSTITUENT WANTED
INTEREST ON BALANCES
Secretary -of Treasury Explains
. . . . . vh . T .1 1
BANKS NO
MONEY
MAKING CONC
rns
mai rreseni rroniB Oi iDBVi-j.,.Hinut- were brought in- the Nvi -tntinna
Ahnnrmfll and That ,arv of th" N"vv 'fdwd ,he estimates
tutions Aonormai ana mili.e hy 1C ,,e.1(, pf lh(,,0 1)urcaDv,
To Pay 2 Per Cent On Be- j Mm, very, very materially. " They
U7n1t nnir Thm ' waried, in some eases, twice the amount
serves Would Require Them 1hc .rotary of ,lie ya,T re-
To Make Investments
The News and Observer Bureau.
00U District National Bank nidg.
By R. E. POWEIX
fBy Special leased Wire
'Washinirton. Feb. 27. letters from
tTr,a!lim. Houston
today were reeeivel ,
"5
posnl ot
by Senator Simmons regarding a pro-,
a constituent of the Senator :
to requiro
tho reserve banks to pay ,
interest on mcmlcr bank.' balances. 1
secretary Houstou said:
Replying to your letter of February ,
21, with the enclosed copy from one !
of your constituents, I wish to say, per-,
rr'opo-T WS" thTrv1:
banks to pay interest on member banks
Not Moaey-Msklng Iaatitatlaa.
"Tha Federal reacrvc system was not
orznnixed to be a money-making inati
- i.:i u. -,e,t- wii
tution. and while its profits nave oeeti
v""""t . .
considerable during the period of wai
financing, because of the grit expan-
"edit ;J""-"
takn place, under normal conditions
I the Federal reserve banks should only
be occasional or seasonal lenders, ana,
when that situation comes about they
will have trouble enough to pay the
six per ceiit "dividends on their stock
without' having to earn two per cent
intorest
The requirement
lirement that they should payl
.rest sould simply mean that 1
sueb interest- s'ould simply
the reserve banks would have to be-M-.uui
competitors with number banks
in the banking business and go out and
make investments of their funds in or
der to mske money with them. I lie
lie ve that the proposal to pay interest
on deposits should not be adopted. I
am sending a eopy of your letter and
the letter of your cost:tuent, together
with a copy of this reply, to Governor
Harding, in ease he may lukve anything
to add."
Governor nardingjft-roUsJSeiiater Sim
mon stosly.:
"Tha Secretary of the Treasury Las
shown me a copy of his letter to you of
the 25th instant, explaining why be is
personally opposed to the proposal that
Federal reserve banks be required to
pay interest on member banl'x Imbinoes.
Considers Contention IT Moans'.
"I wisli to state in support of whst
the Secretary has said that the Federal
Reserve Board has all along taken the
position consistently that the payment
of interest on reserve balances is thor
oughly unsound and undesirable from
meTV standpoint. Any agitation in fu
vor of payment of interest arises, no
doubt, from the large earnings grow
ing out of present operations of the
Federal, Reserve banks., : The board in
its annual report to Congress (page
;iB) points out that these earnings are
abnormal and temporary and cannot lie
expected to continue under a normal
fuysHRhing of tho government of the
I'lfifetf ftates, and each Federal Resetfe
hank, after it accutimulates a surplus
equal tol one hundred per eent of its
subscribed capital, is required .by law
TcTpayTO-per cent of its net earnings
In any one year to thirUhifed States
as a franchise tax. The earnings of
the Federal Beserve banks, therefore,
do not inure to any particular persons
or interest hut to the people of the
United States as a whole.
"With average reserve deposits of
$1,750,000,000 the paymept of tw.i por
(Continued on Tags Two.)
TRINITY PRESIDENT IS
HEAD EDUCATION BODY
Dr. W. P. Few Honored By
Southern Methodist Educa
tional Association
Nashville, Tenn., Feb, 27AElectipn .ot
officers, agreement to bold another con
vention next year at a time and place
to "be decided' by the executive com
mittee and the adoption of resolutions
to push 'the endowment campaign for
Southern ehoreh colleges, completed
the business of the educational asso
ciation, of the Southern- Methodist
church here this afternoon.
Officers elertrf -wererT President, Dr.
W. P. Few, president of (Trinity Col
lege, North Carolina; first ' vice-president,
Dr. C. B. Jennings, president of
Weslyean-College, of tieorgia; second
vice-president. Dr. B. E. I- Morgan, of
Oklahoma; secretary ami treasurer. Dr.
W. E. Hogan, of Nashville.
' Th retiring president 1 Dr. B. E.
BlackweU,- of Bandolph-Maeon College.
Funds apportioned to theJBouthrn
ennrch school now total UJw,tsm
'. : Highway Bill Passed. '
Cu'iumbia. a" Cn FK 27. The South
Canolinn equate today after a two
year's legislative ociay passed the Sttte
highway bill, which with slight modifies
tions, now goes, to ths Booee of Bepre
sentatives aj j pice of coneorrent lej-,
ia la lion. . ' , j
REPUBLICAN STRONG IN
PRAISE OF MR. DANIELS
i
Indiana Congressman Credits
Naval Secretary With An
Economy Program
Tlu' Vce -;nn
V)3 District N
"Vctional Hank BUj.
II y K. E. VOW ELL.
(By Social leased Wire.)
Washington. Feb. 27. When the leg
islative, exoeutiie and judicial bill km
before th" II Dime there was a very ex
truded debate on nearly all the iterus
ond replying to an inquiry' by Mr. Nncll,
pf New York, whether the item in the
bill eould not be cut don. t'ongioss
rnan Wood, of Indiana, Republican
number of the committee, said:
''Before we go to ilp anv cutting here
oufc'ht to hav some basts of actioc.
It, 11. a fiit r.tn,e 1nfrri SUV Inf l,CSi
v - . b
J quested that we give the. And I wish
to soy here, iu all fairness to the tsV
, retary of the Navy, he is the only head
j of any of these -departments that was
l really trying to help the committee to
; rednce expenses. I tbink it is fair ta
say that of Secretary Daniels. How
ever, I wish to s:iv, in ntlttiuon i innr.
that the Postoffico Department did like-i eouutry s tailways, who oiacuwea ine
w ceptlons. we , ProvUi of the bill u connection with
. , v ... , , ,ln, r,ii.nt i.m of urivato ownerahii)
01ir ,ffortJi at reduction.'
T
Two Charges Against Champion
Pugjlistj One Against Ma
ager, Kearns
8au Francisco, Cal., Feb. 27. -William
Harrison (Jack) Dempsev, heavy -welirht
champion of tho world, and his
ninui,,p. .luek Kfarns. were indicted bv i .
rhnrze "that they couspired to
Dempsey evade tho selective draft. A
second indictment agninst Dempsey
charged actual evasion of the draft.
Warrants were sworn out fox their
arrest and their bonds fixed at !.
for '."' "mw
lnn tt.,the !' T
fine and the exasion charge one year in
prison.
Klaus, district attorney here. The in
vestigation was prompted by public
Z " It li- . ,i. , .i. i.. i i.
wife of the pugilist, that she had been
Compelled to attest Dempsey's claims for
exemption.
Kubseoiientlv Mrs. "DeuipseT present
ed sn affidavit to Colonel Thomas in 1
which she restracted the charges saying
that she had been caused by pique
against Dempsey. This alfi'ivit figured
in the grand jury inquiry.
Mrs. Dempsey, Frank friprllman, a rep
resentative of a moving picture com
pany, a number of person., prominent
in state sport circles and executives of
draft boards which exempted Dempsey
appeared before the jury.
Federal ofliriuls said they were ad
vised that Dempsey and Kearns would
arrivo here tomorrow froin Los Angeles
to surrcnder lhemselves.
Charge False Statement
Deinpftey,- " charged with haviua,
falsely sworn that bis father, mother
widowed sister and the latter' two chil-'
drcn were dependent upon him, that he
had contributed 20 a month each to
their surnort durina: the year 1917 and
that they were receiving support from
no other source.
Dempsey's statement to the draft
board that his wife had lived with him
for eighteen months previous to. bis. ap
pearance before ke-4H.rtl hhkV tlHtt -bis
parents and widowed sister had madu
their home: with him for four years were
false, according to the indictment.
"Say, der, if I ask you would you,1
if I wanted you to swear an affidavit
that I was supporting you (see)" LK-mp- ,
sey wrote n.s wnc, .M.t ...
.August, 11.17, the indictment, averted.
I ' , . . ' ,
nr..... ...... . , k
Los Angeles, Cal., r 1..
Kearns, manager-, for Jack Deinpse.v.
said toslay he was waiting to hear from
hi. attorney in ban Fr.nosco lfre
making any move concerning the .vAx
m.nts. He said he l-ped it eoull
arranged for himself and Dempy to
ntr,nnir ill rpuprin uim m
NO DEVELOPMENTS IN
DEMPSEY
AS DRAFT DODGER
;- ?" Tlint L .? o f Z' trov.rsle. a. to wages
ford, ehier of th Department of Jus- nditios and If, in den-
tics Imreau of lavestigntion Wj f t C0BelualoM thn clficiaIlr
ouel C. W. Thomas, assistant Inited . , ..
IRON RIVER AFFAIR (CLAIMS 26 STATES TO--
, T7 , ' j FIGHT FOR PROHIBlflON,
Dalrymple Has Conference! ,'
With SUPerilPr. But NO State-
" F "
ment IS Maae
ChjagiV, Feb. 27. H. M. Gaylord, as
sistant prohibition commissioner con
ferred here today with Ma jor A. V. Dal
rymple prohibition enforcement agent
of the Central states.
After the conference Mr. Onylord
saidi rOnly matters Concerning the
district controlled by Major Dalrymple
were discussed." 1
Oneeruing the Iron River .affair, he
said: "I bsve no official kuonl'lge of
what took place up there end have no
intention of visiting Iron River before
I retwrn to Washington. I was not or
dered to make any investigation. If an
investigation is made it probably will be
don by'the office of the attorney gen--
eral.
Miijor Dalrympla refused ti nil.t i
make a statejiieat coneeimg-iis-itare.
n,.!!rv in tl.M Tirtn TVv.-r fi.Ji'J but tie -
,-v.. . -..wi - Wl,-Kil. JW'T- .
nied the statement attributed to -ium
that he would resign Jiis position if not
supported by the government In the ae -
tion he had taken.! ,
OWNERS PLEASED
WITH RAIL. BILL;
Executives Approve Provisions
of Measure To Be Effective
March 1
ROADS FAR BEHIND IN "
OPERATING EQUIPMENT
Every Agency Connected With
Operation Goes On Trial,' In
cluding Interstate Commerce
Commission; Labor Unions
and Carriers ; Public Must Be
Pleased
New York,J'.'b. 27. Approval of the
railroad bill noi awaiting action by tht
Prrsiden' was expressed at a meeting
here today of executives representing
approximately uiuetv per cent of th
ii March the 1st. lit a statement issued
, at the close of the meeting the execu
! tires predicted t'ist the proposed legis-
lotion would be successful if "the credit,
i of the carriers is made sufficient Vo en
. able them to pcrfom their puhli.; du
' ties."
According to the executives, tht rail
ways arc approximately five yea is be
hind in oirating equipment as a whole,
j and suftieient credit must first be ostut)
: lished before the carriers could iiegin
; the task of overcoming that delic.lt. It
' una estimated that the roads are three.
years behind in passenger cars, tvu
years In-hind in locomotives, one year
behind ia freight care, and twjesrs
behind iu Pullman cars;
Operation On Trial.
With the resuinptioa of private con
trol and under the provisions of the
agency connected with the
i - :l i. ;.! .1. .
statement said. It continued:
"The Interstate Commerce Commit
"ion is on trial, because the jKiwcrs con
rerred npon that body by this bill sre
so enormous and so far-reaching thai
it will become largely responsible foe
the success or fsilure of the systn of
regit lat iou.
"The labor anions are oil trin4 be
cause the government Itself has creat
ed an official agoaty for the Mir ami
organications
It and contrary to public, opinion inter
rupt the orderly and continuous more-
ment of interstate commerce npou
, . ...
depends, they cannot expect to be sus
tained by the people, to whoee will, at
last, ail mast bow.
"The' carriers are on trial, 1 because
na effort has been made to extend
them help of a substantial character
in the performances of their public
duties." -
ALLEGED DODGERS OF
INCOME TAX RELEASED
j Washington, Teb. 27- William A.
I English and John H. O'Brien, Boston
I merchants, seuteneed to 18 months im
' prisortment for failure to make proper
Ti.tcome tax retnros will be released from
the (frreb'nnVhl, Mass., house of correc
tion tomorrow on parole,
j- Knglisb and O'Brien poittly were al-
leged to have "Jefrnuded the govern
j ment. out of tl.200,000 in income taxes,
j This they hsvs paid in addition to the
1 penalty of 00.i"iO0.
Department of Justice officials, in aa-
nouncing ths signing of the parole to
day, said the purposes of the proseru
1 tion had been served and that there
i was no longer reason Jor keeping thcni
in jirison.
BRYAN DECLINES TO BE
ENTERED AS CANDIDATE
BlsmarSt, X. D., Feb. 27. A petition to
, , . . ,
jtho b,Ut naM,t.-for prsei'dentiai
j indorsement . by North Iajta Denia
i erats nt the March primary was wi'n.
, dr,wn to.!y at the request of Mr. Bry-
1 an
j delegates to
j BrVBI,Vmocracy. I have no objecHon,
j tntetfd M a nBlU
d Bryan in a telegram to John
cratic leader who filed the Bryan peti-
I t io-. m. - -
Augusta, aMiue, Fel). 27. A list ef
J .t.,,, that will eo-operatc In oppos-
i. the action of Rhode Island In seek
ing to have the national prohibition
amendment declared unconstitutional,'
wns announced todav by Governor Milli-
ker. ; -- "
The states are Alabaaaa, rixona, Ar
kansas, California, Colorado, Delaware, ,
Flo'iiln, Georgia, Idaho, Indiana, Kan
sas, Kentucky, Louisiana, Maine, Michi
gan, Montana, Nebraska, Nevada, North
Carolina, North ltkota, Oregon, South
Dakota, t'tih, Tevas, West Virgiaia,
and Wyoming. '
Delegaten T Cenference.-'
Washington, Feb. 5 87. Poatmaster'
Geal Burleson, Bear Admiral Will
inm 8. Benson, retired, and Walter 8.
Roters, of LaGraage, I1L,' were womi--nated
todoy hy President Wilson to be
Ka Amprinn tiiwmbers : of the- inter-
; nntlonl coal'erence on oammnnicstious
WDlch "soon ia Jn 'be helit--"5tVVasS Ing- ,
.. - t
1 (VB, I - 5 '
' '. , " . - '
Ts imtorle4 Pon.peian C'lisre Oil t
' making your ext I'wBt-b dressiae.
1, -.. .- Air.
CREDIT NEEDED