New-York tribune. [volume], April 10, 1919, Page 5, Image 5

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Hines l<? Talk
With Bankers
On Rail Debt
jCrisis i" Financial Status
of Lines Believed To Bc
Responsible for Action;
S $500,000,000 Is Needed
Heads of Koads Invited
Amount Will Bc Doubled
Unless Special Session
Is Called Is Prediction
WASHINGTON, April 9.?Railway
? executive, leading bankers and rep?
resentatives of thc War Finance ( or
poration will confer here Friday with
' Walker D. Hines, Direetor General of
Railways, in regard to the parts to be
" played by thc Finance Corporation and
by private financial institutions in the
railway financing qperations now in
progress.
Financial interests will bc represent
? cd bv Eugene .Meyer, jr.. for thc War
Finance Corporation; Thomas Coch
, ran. et' J. P. Morgan <"v Co.; Jerome
*'J. Hanauer, of Kuhn, Loeb & Co.; P. V.
Pavis. vice-president of the National
City (ompany; Jackson Reynolds, vicc
Spresident of the Guaranty Trust Com*
-].'.? v. Bankers from Chicago and other
glargc cities probably will be reprc
Sgented. The financial advisors to Di-t
"^reetor General Hines, James X. Wal
.-?Ih'.t, F. Q. Brown, Frederick Scott
and Mr. Bronner also will bo present.
??Sccretary Glass ot' tbe. Treasury will
Mikcly attend.
Koads t<> Be Represented
*, li-c road? will be represented by
thc Niccial Committce of Railway Ex
ocutivfes, headed b> Howard Elliott and
Bincludjng 'januiel Rea, of hte Pennsyl
g van ia,: Albert H. Harris, of the New
""York Central; E, G. Buckland, of the
i Xew Haven, and Harry Bronner, ot' the
Missoutri Pacilic.
*?'' Beliff that the financial situation of
vllic railroads is rapidly nearing a crisis
' is said to be responsible for the arrang
S,ing of Friday's conference. Railway
%uen have expresscd the opinion that
early action by the President and Con
jgress is imperative if tbe require
troents of the roads, estimated at $500,
?000,000 up to July 1, 1919, are to be
jjSmet. Three-fifths of this amount, it
?" is expected. will have to bc raised by
-.private financial institutions, in the
face of a large Victory Loan, as re
/-gources of the War Finance Corpora?
tion devoteable to this purpose are be
. lieved to not exceed $200,000,000.
.7/ Deficit (irowing Rapidly
The forthcoming conference, it was
"reported to-day, was arranged at a
i luncheon given yesterday by Mr. Elli?
ott for a group of bankers", at which
time it was pointed out that the financ
tuation is rapidly becoming worse
J nd the deficit on the roads is piling
1 p far more rapidly than can be over
'* by thc railroad admiaistration
- its present organization]
If no extra session of Congress i?
:, railroarrj repreaentatLvcs said
to-day. aud no action is secured before
roads Will require praetieally
, $1,000,1..000, and if action is further
d, this amount will be consid
" rably increased.
plrs. Gerarcl Helps
I Convict Ex-Soldier
As a German Spy
,?% ife of Former Ambassador
Identifies a Man Seized
ou Mexican Border as
One Seen in Berlin
-?
Henry Bode, the only turncoat con
was
^victed in the American army,
\ found guilty, it was learned yesterday,
%'.pon evidence given by Mrs. James
j|JW. Gerard, wife of the former am
fcjbassador to Germany, and is now serv
Ipng a sentence of ten years at Fort
?- Jay for espionage. After his convic
t?tion he made a statement describing
grhis activities in thc German Intelli
'- g< nee Service.
..? "D was agreod that I was the most
gjcapable man," he said, "to carrv out a
|i>ro-ject in tfva United States to blow
l? Laguna Dam and destroy the
ad bridge at Yuma. My instruc
vvere to proceed to Yuma and
Bfcettle there to live. I was to obtain
puturea of the bridge and supposed
Jrenches and artillery casements and
gwire entanglements on the American
*?ide ot the border.''
.Bode was born in Germany and
fought up in Hawaii. He was" in tbe
g??sian intelligence -service during
*fe Russo-Japanese War, and had
?"ved in the Philippine intelligence
?partment under General Yeonard
Wood. In 1914 ho wa a private in
|xne Quartermaater's Corps of the
-tJ-Jiitt-d States army, and July 17 of
j*tnat year he desorted at Fort Bliss
?#ex., and went to Mexico.
- Hc- made his way to Germany, enlist
J-*- ?ni the army and won the Iron Cross
7'0r hu gervices on the East Front.
2J?y 19, 1915, he was called to thc
;-%rrr;a" intelligence service, and or
S??ed to report to the German Consul
ga .?ew Vork. Before leaving Berlin
ge called at the American Embassy,
PM at h | tria] Mrg< Qerard identified
i't, */"' German soldier wearing an
Sbne. " Wh0m 8he had KL'C'" at fchat
a.*!*** H few """-"-tha in tho Far Fast
%Vw '""'''? '" -?u-Xi(-o, where hc was
kiul? : Lobt*-ned his aasignment to
*?w up the Laguna dam and railroad
"tLtr"' ? *uma- Ha was arrested bv
lC.?nz,8t,a treop?. however, and when1
*Ped, erossed the border and gave
UP b..e?u,,,. hf. thought the job
" ' fhat was tn July, 1918,
Paited 25 Years, Divorced
W*tay Major Is Granted Decree;
\ Wus Eighteen When Wed
|***Jo? John Henno, U. S. A., stationed
K; 'arnP Mills, wan awarded a decreo ut
T'"."'; '"y Jttatftc* Kelby, ir, the Brook
: '"" Court from .Mr,,. PauJine
|*??m>, wfom he had not seen foi twen
s COuph ?- par.
? ?" o and ? I i
? oppoaition thi ?,
. "'?. ?nd i. ...... . , .
WT
^,r" "' ";,'"i her husband re
? : newspapei account of -
l* '"'?'' ??'??- and invited him to call.
I '' ?" ?;* to t?etfmony at the lu-arintc,
E ,'.'.. ???'* ;h'* had b'-en living fur ymrn
'*-, ?''"" Afid<-rson," a widow. Th<- di
*%& **TMM*mi*'s* Vt>f-r? r,t>t rr,r>t?Ht,.,l
State Income Tax Bill
Is Denounced by Craig
Wealth Excmplcil aml Mill
stone lluiig on Wage Earner,
Asserts Controller
Staff Corre8pondcnce
ALBANY, April 1'. Charles L. Craig,
Controller of Now Vork City, added
; his opposition to tho proposed 2 por
cent stato income tax bill to-day at
tho final hearing on pending taxmeas
ures before the Davenport special tax
investigating committee of thc Lcgis
'. lature.
"It cxempts wealth and puts mill
stones on tho necks of the salary and
wage earners and small lnisinoss men,"
ho said. "Tho bill strikes from thc
tax rolls, and forever exempts, stocks
j and bonds, money on deposit or draw
j ino; interest and intangible personal
property of vast extent, including that
on which no income tax is imposed."
A number of East Side real estate
owners also opposod the bill, contend
ing that it would result in loss to their
property.
Of the advocates Robert E. Dowling.
of tho real estate board of Xew York
City, declared thc income tax proposal
was tho best way of raising necessary
revenue and relieving tho burdens on
real estate.
J. Frank Zoller, of Schenectady, rcp
resenting real estate owners, favored
a graduatcd tax on personal incomes,
for which considerable support had
developed within the last few days. It !
is, h iwever, doubtful that the flat rate '
of 2 por cent will be changed.
-?-,?.
Freight Shippers
RegAin Privileges
Lost During war
{-?i
Concessions ou Routing aiul
Daily Shipmenls Are in!
List; MutualCo-operation
Is Aisreed on in Future
New York Tribun*
' Washington Bureau
?WASHINGTON, April 9.?Freight
1 shippers havo won batV many privi?
leges which thoy enjoyed before the
I war following a two-day hearing be
1 fore Max Thelen, director of public
service of the railroad administration.
A joint corhmitte.e of railroad opera?
tors and representatives of shippers
; proparod a memorandum which was
submitted to tho corlfercnce late to
day and approved by Mr. Tholcn. This
is understood to be final and no
changes are expected. Thc toxt is as
i follows:
"1. The shipper shall not be de
i prived of his right to route his
freight over any line at tho legal
rates applicable and to delivcr his
| freight at point of origin to such
carrier on any business day during
regular business hours.
"Except* as to freight specifically
routod by shipper, preferred routes
should bc cstablished, based on tho
following considerations: (a j Con
veniencc to shippers and consignees;
(b) Economy and expedition of move?
ment; and (c) Proper reeognition of
non-Federal controlled roads.
"2, Daily service will be given to
tlio greatest possible oxtent. At ship?
ping points where it can be mutually
arranged by representatives of iho
shipping public and the carriers
schedules will bo publishcd covoring
tho movement of less than earload
freight, tendered at freight houses,
to be forwarded in through cars or
set-out cars on specified days. The
specified days shall bc known as
. 'shipping days.'
"3. Podlor cars shall be operated
daily, excopt where more limitcd ser
^vice is agreed upon between shippers
'and carriers or authorized by law
fully constituted regulating author
ities, and schedules shall show pedler
car service maintained from shipping
points.
"4. It is earnestly recommended
by thc committee that in order to
socurc improved service for thc ship?
ping and receiving public and to
make possible cconomical and cfli
cient operation by tho carriers. the
fullest corporation should bo ob
served in carrying out the. principles
agreed to heroin, and tho committee
pledgos itself to this end."
.-? .
l\o Steel Solution
Proposed by Hines
Responsibility for Prices Put
Up to Industrial Board
by the Railroads
WASHINGTON, April 9.- In connec?
tion with tho controversy over steel
prices, it was disclosed to-day that in
conferences which have followed thc
refusal of the railroad administration
to accept prices promulgated by the
Industrial Board tho railroad admin?
istration representatives havo neither
definitely proposed now and lower
prices 7ior indicated whether the prin?
ciple of standard prices would be sup
ported even with a reduced scale.
This was said to mean that Director
General Hines had thrown on the In?
dustrial Board the entire responsibility
for finding a way out of tho situation
caused by failure of tho railroad nd- .
ministration to accept, the proposed
prices. Another conference between
Mr. Hines and Chairman Pcek, of the.
board, ia expected to-morrow.
Strikers Get Twenty Days
Magistrate Scores Men Accused
of Assaulting Strike Breaker
Kour mon accused by Joseph Maggi
orc, of 40 Star Street, of waylaying
him on his way to wojk in the plant
Of thc Geller Manufacturing Company,
whore thoy are strikers, and badly
beating him, wero sentenced to twenty
days each in the workhouse by Magis?
trate Dale ln the Bridge Plaza Court,
Brooklyn, yesterday.
"You aro guilty of an net oT Bolshe?
vism," t-.aid Magistrate Dale, in aen
tencing the men "Thia country haa
DO place for men liko you. You have
no regard for tho American laws, which
nre mado bv iho people for tho people
You havo violatcd tho American spirit
and should be dealt with severely."
$6,330,000 Ih Loaned to
Czecho?SIovakfl bv 17 S.
WASHINGTON, April ?.- CredUa of
$6,330,000 to tho Czccho-Slovak repub?
lic and of $900,000 tr, Belgium wero ea
tablished io day by thr- Treasury. Tho
Belgian credit raiaed the total loans
to tho Allies to $9,016,229,000 and tho
total to Belgium to $341,435,000,
The United Statea haa r.dvanced, in?
cluding to-day'a credit, a total of $41,~
830,000 to Czccho-Slovakla. The loans
to the new republic havo been used
largely to pay for nrms, ammunition
and food auppllea for the Czecho
Slovak foreofl operating ln Siberla,
\shoes
ra?t. JRH3.
tJr^COMFORT
***** QUALITY
All our shoes are the prod?
uct of sixty-five years' prac
tical experience.
Their comfort and utility
cannot be surpassed.
P. KAHLER & SONS
15-17 West 44th St.,
Near fltli Ave, New Vork,
ilcncl for Cataloguc.
Bribe Inquiry
Hearings Will
Begin To-day
(ontlnued from pase 1
insistcd on having the bill rcferrcd to
his committee. This was done.
Senator Walters declared he was un
cquivocally in favor of thc enactment
of the measure into law. Asked by
Senator Thompson if he thought, the
bill constitutional, Senator Walters rc
plied:
"1 do not know. I have doubts. If
thc contracts and franchises in exist
ence in New York City between transit
companies and thc city are of a natiire
that will be adjudgod within the pur
view of the constitutional detinition of
a contract. T do not believe this Legis?
lature or any public service commission
can do anything to abrogate any pro?
vision of the contracts.
"But the bill will enablc public ser?
vice commissions to investigate the
subject. It will enablc them at least
to satisfy those who are dissatisficd
with thc proneni. situation, nnd it may
enablc the Public Service Commission
to liring about agreoinent between the
transit companies and the cities that
will result in a modification of such
contracts. ln Syracuse. Utica and
other upstate cities agrcenients al
ready have been reached. Some such
settlement may bc reached in New
York City under this bill will savo
the traction companies there from go?
ing to smash. It inighL.v.'ark out some
I'hangc in the proferentials or other
clauses that would savo tho situation.
"The bill does not provide for fare
increase, but does open a way for the
Public Service Commission to deal with
the railroad Companies and municipali
ties holding agreements or which have
granted franchises, with thc end in
view that arrangements may be made
to save the railroad corporations from
going to smash."
Burke Says He Has
Not Been Served, but
Insists He Won't Run
Kichard H. Burke. who, it is said,
will be tne first man subpeenaed in
the state Senate investigation of the
alleged !?r>00.000 fund to accelcratc
passage of the Martin bill giving the
Public Service Commission authority
to raise carfares, said he had not, been
served at. a late hour last night. He
is living at the Great Northern Hotel,
118 AVest Fifty-seventh Street.
"Well, I'm stiii at the hotel, and I'm
not running away." he said.
Burke said ho had received a mes?
sage over the telephone earlier in the
day that. a subpeena for his appcarance
before the investigating committee had
been issued. He added that he would
not go to Albany unless the papers
were served on him.
Burke, who is said to have been an
I employe of a signal company which
I bgured in the Public Service investiga
| tion conductod by Senator Thompson,
j refused to discuss the present. inquiry,
or the information in his possession.
| Three former Governors Charles F
; Hughes, William Sulzcr and Charles S.
Whitman ? in turn yesterday, when
communicated with, said they knew
| nothing whatsoever about thc state
| inent by Sen-Uor George P. Thompson
of Lockport, about the alleged slush
fund.
| "What is the use of asking former
I Governors about such a matter?" said
, former Governor Sulzer. "Thompson is
| tho man to say who attempted to bribc
; him, if there was any such cireum
i Rtance. I wouldn't know Senator
Thompson if I fell over him in the
l street. I never met him but once. If
? any one should offer me $500,000 as a
bribc I would knock him dbwn, and so
would any other honest man. I was
j twenty-seven years in public life, and
: never was offered a bribe. If I thought
I was under suspicion 1 would wire
.senator Thomprfon instantly, chaJleng
mg him to produce thc names of th"
mysterious strangers who have been
i trying to bribe him.
"The story from beginning to end
sounds incredible to me. However, thc
&enate has appointed a committee, and
in due course Senator Thompson, under
oath, will have a chance to say who
ofiercd him thc bribc, and who dangled
before him the Governorship nomina?
tion if he would assist tbe traction in?
terests. If there was $500,000 'slush'
money ready for distribution at. Al?
bany there would bc little mysterv
about the fact. There would bc a riot'"
l know nothing whatsoever about
thc statement attributed to Senator
Ihompson and narrated in to-day's
papers, said former Governor Whit?
man. An equally comprehensive state?
ment was made in bchalf of Mr. Hughes
by his secretary.
The four other former Governors
are Benjamin B. Odell, of Newburgh
Horacc White, of Syracuse; John A
l>ix and Martin H. Glynn, of Albany.
Chicago Judge Blocks
Biirleson's Phone Kales
CTirCAGO, April 9.?Judge Charles
M. Foell, in the Superiur Court, to-day
made permanent an injunction issued
a few weeks ngo restricting the Chicago
Telephone Company and tbe American
, Telephone and Telegraph Companv from
-?aismg their rates in conformity with
thc schedule issued by Postmaster Gen- I
crnl Burleson.
American Ship Arrives
With Mail From Danzig
Tho West llumhaw, an American
steamship, arrived at XoW Vork yester?
day with mail frora American military
and other officials in Germany and
Poland. She came from Danzig, and
was the first ship flying an "Allied flag
to dock at a German port since the
armistice.
Captain Hatfield. commander of the
West Humhaw, said things were quiet
in Danzig during the fifteen days his
ship was there.
"The Germans," hc said, "laid them?
selves out to flatter us Americans.
They said they were all friends of the
United States and blamed their
troublcs on the English and French.
"I have boen many times in German
ports, but I never saw people looking
more prosperous pr better dressed than
in Danzig. Nobody did any work. The
government paid them eight marks a
day for doing nothing, so thoy did not
seem to think there was any necessity
for working. Thoy wero short of soap
and sugar. II a man had a piece of
soap he locked it up in a safe. and they
would steal anything sweet if it was
not, nailcd down."
Captain llatlield said little had been
done toward cleaning up mine lields in
the North Soa and thc Baltic.
Oats Handlers Move to
Expedite Grain Exports
To Adjust Private Business So
1. S. Can Send 1.600,000
Tons of Food to Europe
To increase the export grain handling
facilities nf the Port of New York i
so that the Grain Corporation can |
send a total oT 1,600,000 tons of!
grain and ccvoal products to Europe \
in tho next thiry days, oat handlers ;
of this city at a meeting yesterday
agreed to adjust their private business
to release the grcatest possible per
ccntage of the port facilities for this ?
pu rpose.
A
MERICANS don't like things
that seem, but aren't. They may
put up with near-seal, near-silver,
near-style, but they'd rather get
nearer^ than that, if the price
doesn't keep them away. My
Journeyman Custom-Tailored Suit
to your individual measure at
$30 to $55 costs you no more.
You get rich custom Patternings; season-ahcad Custom Color
ings. You get a Custom Tailor's Fit, doubly assured hy
careful measurement first ancl a careful try-on aftervvard. You
get my Personal Attention from Hand-Clasp to Hand-Tailoring.
::,::,.. Qemgas
-*?*"' ' '"h v-ivilian, Army
Of Slashing Swarilr' And Navy Tailor
Broadway at 391~hSt
21" Years OnThis Corner
Men's and Young Men's
Spring Suits
A SALE WITH
EXTRAORDINARY VALUES
$28.75
All Reduced in Price. Well Tailored.
The Season's Latest Models.
Plain BlueSj Broions, Grcys and Blacks. Fancy Jf'or
sleds and Striped Effects. New Patterns?New Styles.
Men's and Young Men's
Spring Top Coats
VA Silk Lined tffcOl ^fZ
I'tril Silk Lined ^Alt i O
Chcsterfield model, double breasted skirted
model, and form fitted model.
Well Tailored. Many fancy colors as well as
plain Oxford greys. All sizes.
Men's Separate Trousers,
$5.75, $6.75, $8.50
For dress'or business wear. Plain colors and striped effects. All sizes.
Lvcry pair in this sale has been reduced.
G1MBELS MEN'S CLOTHING SECTION?Fourth Floor
Derbies and Soft Hats, $3
Men's New Spring Styles
Such hats have not sold for so little since 19! 4.
for Gimbels Spring Drive for 100,000 new customers we want to put on sale
the best valucs we possibly can. These hats are extraordinary at the price.
GIMBELS MEN'S HAT SECTION?Fourth Floor
Broadway
any
at 34th Street
Will Place on Sale Today a Rare Collection of
Women's Dolmans. Capes and Coats
of a character seldom seen at
$22.50 and $29.50
These beautiful Capes and Dol
mans.have all the earmarks of mneh
higher priced garments. In their clever
lines and their careful needlework"
they set a new standard of value in
smart wraps at these very modest
prices. Fashioned of
Wool velour, men's wear serge,.
poplin and duvet de laine
$29.50 of dependable quality. Two styles
yictured, Fourth Floor,
Todayy Thursday j
200 Women's Tricotine, Serge
and Poiret Twill Frocks
Greatly Reduced
All taken from our regular stock and reduced be?
cause the size and color assortments are incomplete.
Tricotine Frocks.formerly $39.50 to $45. . now $25.00
Poiret Twill and Serge Frocks.... .formerly $29.50 and
$35.00. .,.^.;.................. .now $25.00
Embroidered Serge Frocks. formerly $25...:...... .now $15.00
Braided Serge Frocks-formerly $18.50...;.;... .now $12.75
Sizes 32, 34, 36, 42, 44 are in the majority,
but sizes 38 and 40 may be bad in some style9.
Sat\s & Company Will Place On Sale Today
3,000 New Easter Blouses
at much below their actual value
'All new, fresh, crisp Easter blouses that just teem with original style
innovations. Many are strictly tailleur for wear with thc smart tailored
suits for Spring. Others are more elaborate, but all are truly interpreta
tive of Fashion's latest edicts. In the collection:
Dainty Voile and Dimity Blouses.special 85c
Smart Organdie and French Voile Blouses.special $1.45
One Thousand Sample Blouses.special $2.00
Chic Crepe de Chine and Geotgine Blouses.special $2.85
And a wonderful collection of the most beautiful Georgette
aml Crepe de Chine Blouses ever presented iu New York
Special at $3.95 and $5
On Sale Today, Friday and Saturday
1,500 New Brassieres and Bandeaux
JBk Speeial at 85c
. ??> ' / ? A wonderful collection of ncw front
Xf and back fastening brassieres and
bandeaux that usually sell at very much
higher prices. Fashioned of
V
\ / ii
^. '?' r?
Wash satin, pussy willow silk, mesh rloth, sifit dotted batistc, all-over lace,
long cloth and tricot, trimmed with lace and embroidery. Main arul Third Floor?.
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