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TISED IN THE TRIB?NE IS GUARANTEED First to Last?the Truth: News - Editorials - Advertisements ?Eri?rone WEATHER Fair to-dajr and to-morrow, warmar to-day; south wlads. roll Report ?n Ts??e 18 Vol. LXXVm No. 26,159 roopyvtaht ?IS? Tti? Tribune Aaa*n] SUNDAY, JUNE 30, 1918-SEVEN PARTS-SIXTY-TWO PAGES ? ? * FIVE CENTS In Hew " T?rk CKjr Public Robbed By Profiteers, ? Says Trade Commission Soaring Prices Are Not at All Justified, It Reports to Congress Juggling of Cost Accounts Shown Flour, Meat, Leather, Coal and Oil Firms Some of Those Ac? cused of Abuses By Theodore M. Knappen WASHINGTON, June 29.?In a twen ty-P*Re report to the Senate made pub? lic to-day, the Federal Trade Commis? sion declares in effect that profiteering is rampant, and so far as its investiga? tions go, almost universal. There is nothing in the report to show that the government has been especially mulcted on its war contracts, but the whole tenor of the report is to the effect that prices in every field are excessively high and that the increase is for the most part out of all relation to the increased cost of production; that it has come about since the beginning of the war in Europe and largely since America's entry into the war, and is, therefore, to be classified as profiteer? ing. Even in those lines of industry where tho percentage of profit has not been advanced the total of profits has increased, and the commission holds that in a strict sense, viewed in the light of the highest patriotism, this form of profit is also profiteering, though a very venal offence compared with the other kind. yK~ ?' Listed as Profiteers Of the industries which the commis? sion lias investigated in the course of cost-finding for various governmental agencies, in industrial surveys directed by the President or of its own initia? tive, or in the enforcement of the law against unfair competition, the follow? ing are unreservedly classed as profit? eers : Flour millers. Meat packers. Leather manufacturers. Shoe manufacturers and retailers. Coal producers. Steel manufacturers. Vegetable canners and bottlers. Copper smelting and refining, with exceptions. Sulphur producers. Petroleum and'its products. Milk ?anners. Salmon ?amers. The three infiuctries investigated which the commission concludes are not profiteering are lumber, zinc and nickel. The two last are making enormous profits, but they are not larger now than before the war. Not all producers in the stigmatized groups are profiteers in fact, but as a general statement it is a fair inference from the commission's conclusions that such individuals as are not profiteers ?re such because their costs are so high that prices which mean 100 per cent profit for u lov/-cost producer leave only a small margin, if any, for them. Three Conclusions Drawn The commission arrives at these three general conclusions governing the three forms of its investigations: "The outstanding revelation which accompanies the work of cost finding is the heavy profit made by the low-cost concern under a governmental fixed price for the whole country. "The outstanding fact in the in? dustrial surveys which the commission has recently made is the heavy profit made by the meat packers and by those allied with them and by the flour millers. "The outstanding feature on the score of profit revealed in the regular work of the commission under the statute creating it and the Clayton act is the trade tendency to increase and maintain prices against the forces of competition." The commission also makes this gen? eral statement: "The commission has reason to know that profiteering exists. Much of it is due to advantages taken of the necessi? ties of the times, as evidenced in the war pressure for heavy production. Some es? it is attributable to inordinate freed and barefaced fraud. "Some interesting comments are made on the effects of price fixing. In the case of basic metals, such as steel, the government established a high fixed price to insure and stimulate pro? duction. The result was that, while the market was prevented from "run "Mng away/' a wide range of profits re? sulted. "Under the device of a cost plus mar fin of profit these profits are neces ?*i"*T ?resat in the case of low-cost ?ills," and "the stronger factors in the industry are further strengthened in their position and enriched by profits Wbieh are without precedent." Hardship for Public The commission finds that the ex? perience with price fixing in coal, flour ?ad steel shows that, while a high ?VS. *tm* fixed P*io? ?tabiliaes an ?s ht?? market, "it i? fraught with ?S*?*hiJ?,to the ?on?unjing public and *?h ultimate peril to the high-cost Continued on Page 10 i Germany Planning to Intervene in Russia ,_ (By The Associated Press) LONDON, June 29.?The Ger? man government, according to German newspapers, is taking preparatory measures with a view to intervention in Russia, says a dispatch to the Exchange Tele? graph Company to-day from Zurich. Under this plan, it is stated, troops will be sent to re? store order, assisted by Maxi? malist forces. (By The United Press) STOCKHOLM, June 29?The peril of a Bolshevik alliance with Germany will be greater than ever if the Allies invade Siberia. "If forced to choose between the evils of German and Japanese orientation, we prefer the former, because there is chance of a revo? lution in Germany," War Minister Trotzky declared in a speech at Moscow this week. M* Adoo Turns Back 1,700 Short Lines Director Moves Before Con? gress to Prevent Action by Law WASHINGTON, June 29.?About 1,700 short line railroads were turned back to private management to-day by the Railroad administration a few hours before Congress passed legisla? tion intended to prevent the relin quishment of many of them. Between ?00 and 400 of the roads relinquished had sought tc remain undar government management. About 400 short lines were retained as part of the national system. Announcement of the action was withheld by the railroad administra? tion until less than an hour before the legislation -which would have stopped It was finally enacted. It was explained that the course was made necessary by the railroad act's provision requiring the government to decide before July which'short lines would be retained and which relin? quished. Railroad administration of? ficials also explained that since the leg? islation was not taken up by ether house of Congress until about 4 o'clock this afternoon, they could not know ?whether it would be enacted. The leg? islation, therefore, is virtually nulli? fied. More than 1,200 of the roads turned back to private management were in Continued on next page 7 Convicted For Emerson Motor Fraud Jury Returns Verdict After Twenty Hours of Deliberation Court to Impose Sentence Tuesday Trial Result of Expose of Swindle by Tribune The Emerson Motors Company and those associated with it in a conspir? acy to defraud investors by means of the mails were found guilty yesterday by a jury in the criminal branch of the Federal District Court. The verdict was reached only after the jury had deliberated continuously for more than twenty hours. The indictment, arrest and convic? tion of the corporation and men in? volved in the gigantic swindle all fol? lowed an expos? by The Tribune on October 12, 1916. The disclosures, un? fortunately, did not come until the public had been mulcted out of closa to $1,500,000. The trial of the conspirators began May 23, Judge Martin T. Mant?n pre? siding. Yesterday the jury found the following guilty: Emerson Motors Company, Inc. Robert P. Matches & Co. C. R. Berry & Co. Nicholas Field Wilson. Robert P. Matches. William Loomis. Osborne E. Chaney. Theodore A. Campbell, his son, George N. Campbell; George B. Gifford and William H. Stetson were acquitted. Continued lender Bail As soon as the jury had been polled, George Gordon Battle, counsel for the defendants, moved to set Tuesdav as the date for pronouncing sentence and asked permission to move then for a retrial. He stated last night that if his motion was denied, he would be pre pared immediately to take an appeal. ? Sentence will be pronounced on Tues? day. Until then, Judge Mant?n con? tinued the bail under which the men ? hav? been at liberty, following their ? arrest and during their trial. Theodore A. Campbell is under an-1 other indictment for alleged fraudu lent use of the mail. He was released i on the same bail bond which he had i furnished before the trial. The other three men acquitted were releasea from custody. The Emerson Motors bubble was first Bet afloat in April, 1916, when the Em- j j erson Motors Company was incorpo Continued on page seven Shy at Hearst Move to Seize Loyalty Day Congressmen Balk at the Invitation of Publisher for July 4 "All Expenses Paid," But Majority Refuse Lawmakers Object to Be? ing Camouflage to Attest His "Patriotism" (Sp?cial Dispatch to The TribuneT WASHINGTON, June 29.?A cam? ouflage of loyalty, the paint of which is composed of the respectability and Americanism of the United Staies Con? gress, is being prepared for William Randolph Hearst by busy agents in Washington. Invitations have been extended to more than 250 members of the House of Representatives and to about half the members of the Senate to be Mr. Hearst's guests in New York on the Fourth of July. He is willing to pay all expenses, hotels, theatres, trans? portation, automobiles, and to furnish seats on "his" stand, better known in New York, probably, as the Mayor's committee's stand, from which to view the loyalty parade. Probably one hundred members of the two houses, inquiries to-day dis? closed, will go on the junket. Most of the members invited have rejected the invitation, having no desire to pose before the people of New York City on a patriotic occasion with William Randolph Hearst. Want Home Folks? View "What would the folks out in my district say if they read in the paper that I was the guest of William Ran? dolph Hearst at a patriotic demon? stration on the Fourth of July?" was the question with which member after member retorted when asked if he was ! vgoing to join the Hearst special. New England Representatives unani? mously rejected the invitation, so-far as; inquiry to-day disclosed. S0"** had already accepted invitations to address patriotic gatherings on the holiday, in their home cities and town*. Some of the Bay State" members, however, let it be known that they did not feel in the least complimented by the Invitation | from Mr. Hearst. j Representative "Uncle Billy" Green, of Fall River, one of the oldest Repub-i licans in the House, said: "I won't at? tend anything run by Hearst under any circumstances. I share the feelings of the United Train of Artillery of Provi? dence, one of the oldest military or? ganizations in the country, which voted last week not to read the Hearst papers Continued on last page OUR BOYS HAVE STOOD THE TEST OF GAS AND DRUM FIRE AND CHARGES WITHOUT FLINCHING? BUT WHEN THEY TRIED TO INTRODUCE THE ENGLISH CUSTOM OF TEA FOR BREAKFAST, WOWIEI Upton Men Hold First Line; Troops From U. S Reach Italy; French Repulse 3 Attacks _ <3>-T--?__? Gen. March Tells of First American Ex? pedition Ordered Against Austria Pershing to Send More Fighting Men Chief of Staff Asserts That Situation Is Ex? tremely Favorable to Allies By C. W. Gilbert WASHINGTON, June 29.?General March at his weekly conference with newspaper men to-day announced that the situation on the entire West front? which, of course, includes the Ital? ian front, was "extremely favorable to the Allies." This is the most optimis? tic statement he has made since he began his talks with the press. He did not explain just in what re? spect it looked extremely favorable. But from an announcement which he made it would seem that in man power the Allies were better off than at any time hitherto. This announcement vas that five divisions of American troops, which had been trained with the Brit? ish, had been returned to General Pershing. 77th Division Holds Sector It had always been the plan to con? stitute a distinct American force out of the units that were scattered among the Allies as soon as the great emer? gency created by German superiority in man power had passed. It would seen, ?s if~that emergency was pass? ing, or was at least decreasing, from the fact that Pershing is already re? ceiving his men back. , The honor of furnishing the first Na? tional Army division to take over a sector of the Western front as a unit falls to Now York City. The division is the one trained at Camp Upton, on Long Island, by Major General J. Franklin Bi-11 and sent to France un? der the command of Major General Johnson. Reports from France to which Gen- i eral March did not allude praise the quality of this unit of the new army. Special interest attaches to the success with this Upton division be? cause it was composed of a great mixt? ure of races from the melting pot of New York City. Evidently the Ameri? canization is complete. Another favorable factor in the gen? eral's mind was the Italian front. The general emphasized the importance of the Italian victory, both in a military and a moral way. It had been, he said, of great encouragement to the forces opposed to Germany everywhere. Criticises Austrian Strategy The general criticised the Austrians' strategy. The Austrians had under? taken a drive of too great breadth. Forces great enough to push through an effort 200 miles long were not pos? sessed by Italy's foe. He announced the first Americans to reach the Ital? ian front direct from this country had arrived. They were largely non-com? batant units, to support the military forces to come later, of whom the first I were sent from France by Pershing | the other day. The general settled the disputed is? sue of the size of Italy's capture of Austrians. According to the War De? partment figures 18,000 Austrians were taken. The Italians have now driven the enemy back to the positions from which he started, and near the sea have forced him further north. Of the American troops the general had only words of praise. He felt sure that the War Department policy of making public the name of every Amer? ican soldier, no matter what rank, who rendered distinguished service was highly approved by the army. Though American troops serving among the British and French are now being returned to Pershing it seems probable from General March's words that the policy of training Americans back of British and French lines would be continued with the new arrivals. Allied Lines Strengthened Only in this way, the general indi? cated, could the American army be made ready for battle quickly. The Chief of Staff also regarded with favor the variety of training that was to be got through this system. From the general's statement that the situation is extremely favorable it would appear that no part of the line is now so weakly held as was the posi? tion between Rheims and Soissons when the latest German drive began. From foreign papers it would appear that th?3 section was thinly occupied 1 by French territorials and certain di? visions of England worn out by fight? ing elsewhere, who were sent to this front as a quiet one in which to rest and recuperate. The success of the two German drives which got furthest is easy to un? derstand when the facts about the troops holding1 them are considered. The line near St. Quentin was recently taken over by the English from the French, against the protest of the Eng? lish commanders, and was not held in sufficient strength. The line between Rheims and Soissons was held by sec? ond rate French troops and exhausted English troops. When enough men are available in France to hold strongly the critical pointB, like those which defend the Continued on^ytext page . ?g--^ German Chief Predicts New Blow; Admits Austria Failed at Piave (By The United Press) AMSTERDAM, June 29.?General von Liebert, commmander of the German forces at Lodz in the Russian campaign, declared in an interview granted the "T?gliche Rundischau" that it will not be long before another German blow will surprise the Allies, falling where it is least expected." In referring to the Austrian offensive, von Liebert said: "We must admit, though it is painful, that our allies failed at the Piave." The weather is blamed for the Piave failure by the "Koelnische Zeitung," while the Vienna "Reichspost" says that "failure of the German gas method against the Italian artillery at Sette Communi (the mountain region) was disastrous." City Thrilled At News of Upton Army 77th Division, Now Hold? ing Sector, Is Called "New York's Own" News that the 77th Division had taken over a definite sector of the fight? ing line for its own, that there was an actual Yaphank front in France, gal? vanized New York yesterday. A bit reluctant, perhaps, to adopt the nomen? clature of war correspondents?"New York's Own"?the' qty nevertheless 'had realized from the start that the di? vision from Camp Upton was the' local Rainbow Division and peculiarly its own. It had seen the men in the autumn ' sunshine marching in straggling for- ; mation but with prideful bearing from j Eleventh Avenue, from Riverside Drive, from Harlem and The Bronx to the Long Island City ferry. It had seen them again, strangely metamorphosed from the motley silk and flannel shirted throng of a few weoks before, pouring up Fifth Avenue in precise dun ranks while the snow flurried about them. A bleak winter interval during which the compensation for the empty chair at the breakfast table was the comfort? ing knowledge that it was only a little way to Yaphank and a long way to France, and then came brief and mys? terious leaves, silence and a Y. M. C. A. envelope marked "soldier's mail." The 77th was in France, horse, foot and guns. And now it is on the firing line and the National Army is in the fight. Mobilizing at Camp Upton With little of the soldier about them, save khaki shirts and wrist watches, these 27,000 men began pouring into Camp Upton on September 10. It was the beginning of the nation's "Great Experiment." George W. Perkins, jr., and Sam Wah, laundryman, of course, had pioneered the way into camp side by side. Lowbrows arid highbrows slept one yard apart, a new democracy, that first night. The two blankets, thin as an afternoon tea sandwich, promoted a greater democracy in the early morn? ing hours, for bunks were placed be? side one another and the blankets stretched across. Many languages mixed with the smell of army cooking in the mess hall that first morning, and there were many ways of eating. Some had been accustomed to dressing for dinner, others to undressing for it. Bank clerks gayly wasted hundreds of dollars' worth of manicuring on the handle of a pick in the early stump pulling days. John Cahill, of Green point, was a master worker then. He had been a grave digger. On September 16 to 19, new incre? ments began dropping off the trains at the rustic terminus, all with their comfort' kits and their choruses of "Where do we go from here?" Com? panies were formed, and Plattsburg re? serve officers, college men, business men and regular army ex-top sergeants began making good from the start. General Bell Guided Machinery Major General J. Franklin Bell, with his forty years of army career and his unimpeachable record of service in the Cuban and Philippine campaigns, was guiding the molding machinery. Briga? dier General Evan M. Johnson, who, as a major general, now leads the divi? sion, and Brigadier General Edwin Whit? j enmyer, graduates of the War College, i with inches of varicolored service rib? bons on their chests, assisted him in the early processes. Brigadier General Doyle commanded the artillery brigade. Assigning these bookkeepers, cloth? ing cutters, buttonhole makers and the others of civilian occupations unsuited for war use to units where they were best fitted was the task of Captain W. i H. Perry, former chief engineer of the Bridge Department of New York City. Tkree choices were given to each man, and these, coupled with a review of his qualifications, were used by Captain Perry in picking the division's pers n nel. On October 8 an intensive training schedule, calling for four months of strenuous work on the part of the rookies, was promulgated. It had been formulated by General Bell in confer? ence with his chief aids. From Amok, who hunted heads with other Igorrotes in the Philippines until he came to America for exhibition purposes at Coney Island, to Morris Fleicher, who held four college degrees, the men drilled, dug, hiked, exercised and stud? ied day after day. There was no flinching during th? terrific cold of December and January, .... Continued on next page ?11?- , ,-_ U. S. Protests To Carranza Over Oil Tax State Department Calls It Confiscation of Property WASHINGTON, June 29?Declaring that all the United States asks of Mex? ico for American citizens is justice and fair dealing, the State Department made public to-day a "solemn protest" sent to President Carranza against the Mexican decree of February 19, 1918, establishing a tax on oil lands. The statement egsjauihe new tax amounts practically to confiscation or, at least, unfair imposition, and cites extracts from President Wilson's speech to the Mexican editors on the future relations of nations as follows: "As long as there is suspicion there is going to be' misunderstanding, and as long as there is misunderstanding there is going to be trouble. If you once get a situation of trust then you have got a situation of permanent peace." Asks Fair Treatment The statement by the State Depart? ment saya further: "The United States always desires to accord to the Mexican government and people justice and fair dealing, and it is confident that it will be accorded the same justice and the same fair dealing in return." The State Department gave out its statement and the text of its protest to-day, after having learned that soon after President Wilson's speech to the Mexican editors here recently had been printed in the Mexican papers the Carranza government gave out the text of the American government's protest against the oil decree, and it was com? mented upon as being inconsistent with the President's speech. "The United States government would have appreciated being asked for its consent to the publication of this note, inasmuch as this procedure is'usually followed in diplomatic deal? ings between friendly nations," says the department's statement. "Such consent would, of course, have been readily given if the Mexican govern? ment had' intimated that it believed the note should be published." The department's statement con? tinues: "An examination of the note proves that all that the United States asks for its citizens who have made invest? ments in Mexico, relying on the good faith and the justice of the Mexican government and Mexican laws, is jus? tice and fair dealing. There is no disposition on the part of the United States government to interfere in the internal affairs of Mexico. Denial of Justice "However, the seizure of property at the will of the sovereign without due legal process, equitably administered, and without provision for just com? pensation, has always been regarded as a denial of justice and a cause of diplomatic representations." Ambassador Fletcher's note of April 2, after stating that the United Sutes government had given careful con? sideration to the effect of the decree, says r "The United Sates cannot acquiesce in any procedure ostensibly or nomi? nally in the form of taxation or the exercise of eminent domain, but really i resulting in confiscation of private i property and arbitrary deprivation of ! vested rights. . . . The seizure or ! spoliation of property at the mere will | of the sovereign, and without due legal : process fairly and equitably adminis ' tered, has always been regarded as a . denial of justice and as affording in 1 ternationally a basis of interposition. ; "My government is not in a position : to state definitely that the operation ! of the aforementioned decree will in effect amount to confiscation of Amer ! ican interests. Nevertheless, it is deemed important that the government | of the United States should state at l this time the real apprehension which it entertains as to the possible effect ; of this decree npon the vested rights of ! American citizens in oil properties in < Mexico." I ' ? i i Metal Hargrove, Tin? St, near Col. Are. j Trana rate?. IS an? ?p. lar?, ?col rooaa * with bath.?A4vt. T Americans Hurl Back Germans at Cantigny and Capture 40 Prisoners Italians Defeat Enemy at Rheims Vienna Reports Fail* ure of Allied Attempt to Force Crossing of the Piave The 77th division of the National Army, drafted in New York City and trained at Camp Upton, has taken up a sector of the fighting line in France, General Peyton C. March, chief of staff, announced yesterday. First American troops landed in Italy Friday, General March stated. These units are largely non-combatant, sent direct from America to support the fighting forces which General Pershing has started to send to Italy from the Western front. The Americans at Cantigny. north? west of Montdidier, took forty prisoners, including one officer, in. an attack on the German line? early yesterday, the French War Office stated. Three German counter blows in at? tempts to retrieve ground west of Soissons lost to 'the French on Friday were repulsed by the de? fending forces. Everywhere the French held their gains. The Italians attempted again to push across the. Piave River on the east wing of the Italian bat tlefront, the Vienna War Office stated, but were driven back by the Austrian fire. Elsewhere? on the fronts there was only local fighting, accompanied by artillery duels of varied inten? sity in scattered sectors. Foe Repulsed in Sharp L&c&i Fights On Front in France LONDON, June 29.? Sharp local fighting was reported to-day from the battle front in France. Three times the Germans attacked the new French positions west of Soissons, gained in yesterday's advance, but every assault broke down under the French guns. Everywhere the French line was held intact. The Italian forces holding the sector of the battle line on Bligny Heights, southwest of Rheims, on the east wing of the great Champagne salient, were attacked suddenly by strong enemy forcea that momentarily gained a foot? hold in the Italian front trenches, but , in a desperate counter attack the Ger? mans were ejected and the old line re j established by the defending forcea. Berlin admitted the advance of tes , British yesterday before Niepoe Forest, ; stating to-day that after capturing the village of Vieux Berquin (the captura was not claimed by the London War Office) the British were thrown back ? a German counter thrust. The Allied forces took more than 400 prisoners in this operation, in addition to others taken by the Australians in their simultaneous attack on the Ger? man lines near Merris. Artillery Fire Increases Along the battlefront in, Flanders and Picardy and in Champagne there has been increasing artillery fire. On both sides of Nieppe ?orest the guns I have played a postlude to the British infantry attack. And on the Somme, northwest of Chateau Thierry above the Marne, and east of Rheims, they have continued their incessant thunder? ing. British aviators shot down seventeen German airplanes and drove six others down out of control in the air fighting on the battlefront yesterday, says an I official announcement dealing wit)? aviation. Another official statement by the Air Ministry dealing with raids into Germany reports a successful at? tack on industrial works in Mannheim. Beset by five hostile machines during the raid, the British airmen drove three of the enemy down out of control and returned to the British lines without loss. The air ministry's official report on bombing operations says: "On Friday evening an enemy air? drome at Frescati was attacked. Owing to bad visibilty, bursts were not ob? served. On Saturday the Badische ant line and soda factory, at Mannheim, was successfully attacked. Many bombs were dropped and six bursts were ob? served on the factory. Hostil? 'Planes Driven Down "Our formation was attacked over its objective by five hostile machines. Three of these were driven down out of control. All our machine? returns?! safely." The statement dealing with air fight? ing over the battle lines says: "There was much fighting in ths ?1* on the British front cfc the 28th inst? and ?nsmy machios? ?Bovsd couid*?.