New-York tribune. [volume], October 07, 1920, Page 3, Image 3

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Clegg Charges
Shipping Deal
Aids Germans
Kerr Company President
Says Harriman Contract
Gives Hamburg Line Big
Advantage attfhtr Expense
Taxpayers Will Foot Bill
Call* Agreement "Window
Dressing" : Asserts War
Clause Penalizes America
_
Alfred E. Clegg, vice president of
the Kerr Steamship Company, yester?
day at' ??" infracts entered into
hftween the American Ship and Com?
merce Corporation and the Hamburg
American Line, He de clared, in a pre?
pared ? that the complete
texts of the reements show that
Amen--; : s will be called upon
to help restore German trade. W.
Averc'.l Harriman, president of th
poration, made public the
details cts signed by his
comparu and the Germans on dune 19.]
Mr. rted that the Harri?
man interests expect to obtain ships
from t! States Shipping Board
e m into sen ice on a
?rar: o Germans,
: me years
? e to be made up
from .' irci ?. He declared
that the poo ?ng of gross profits will
give the G : an ad\ antags and
that virtu..1 ; hole a rre ? n nt, ex- I
? ?enty years.
to res ore Ger-.
man si e-war basis" at ,
Vmei pin g.
"If S d steamers are
operati I - : ? ract," Mr.
Clegg ":? : " ?l"-ss to the taxpayer
- h no compens?t- ;
buil ling up the
tarryi future.
"If the pi "the Jones bill '
ar? eni ? ' ?can marine can
iouI an alliance of
: racter "
Calls Agreement "Window Dressing"
Mr. i i the general !
? i Gi rmans with
-;:.o Ha *; as "window
. re s..- ? ? d the vari
the ope rat ing agree?
ment, a t to b "poorly worded
is criti- j
'?Ger have no
: therefore
Amerie in 1 ve to act as
,1 .?ring th
riod, an ' ' period of
aril mc nat ion 5
a large share of
ocean thai "there will
; ci :. i?i
an hip operat
.... - and losses
nding upon
and re ovc -
g of trades
e ip-an .
-. ;.ear undertak
. i .
?om the Ameri
?
he has
-, and c arly obliges
his steamer3 to one
? upbuilding of Ger
?
? It is in the contradic?
tory 6 ion that
H. A. L. i - 185,000 gross regis
: - agreed upon ?.
it 260,00 - ta
:. rc ady. and Ameri
:. . : be 'ithdrawn.
ne rs so withdrawn
?? employed under this
agrei ...
' throughout Is stamped
with thi an desire *r> be helped
ever tl years, when probably
only th . I . a\ e s tea:i;-- 3.
tfter ? every si ip-up or cle?
rical? ? advantage
? ? '. i o f t h e
War e lause Penalizes Americans
. War Clau e. The Amer?
ican cm -. ily nt nalized by
- earners are requi
American government
Tiffany & Co.
Fifth avenue &37tJ'Street
PexRls Diamonds Jewelry
Silverware Stationery
the company loses a portion of its j
earned participation on being ready to
re-enter trades.
"The act of requisitioning' in itself is
the signal for Americans losing a part
?ir traite, because if they procure
other tonnage immediately they can,
under this clause, claim only 'f>') per
? of the trade, even if up to that
time they had had 100 per cent.
"If Germany goes to war with any
nation other than the United States
the American steamers must continue
to serve Germany and cannot withdraw
except subject to a year or more no?
tice. This would place America in a
sorry position if Germany and a coun
y friendly to the United States came
into hostilities.
"If there is war between nations
other than the United States or Ger?
many American steamers could not
withdraw, but would have to continue
operating in Germany's export and im?
port trades with neutrals for a mini?
mum of one year, and probably longer."
At Mr. Harriman's office, 120 Broad?
way, yesterday, it was said he would
not comment on Mr. Clegg's charges.
Harriman Does Not Need
Ship Board's Approval
Admiral Benson Rules He Dia
Mot Have to Submit Gvrmar
Agreement for Inspectior
Fro ' mc Washington Bui
WASHINGTON, Oct. 6.?The Ameri
can Ship and Commerce Corporation
f which W. Averell Harriman is presi
dent, could conclude its agreemenl wit'
the Hamburg-American line and begi
operations at once without the ap
proval of the United States Shippin
Board, Admiral W. S. Benson, chaii
man of the board, said to-day.
Admiral Benson pointed out that th
law does not require the approval c
the board before the agreement cou!
be valid. The Harriman company ht
its own ships and the legality of tl
agreement has beet; approved by tl
legal department o'.' the board, and th
is ti!! that is necessary, Admiral Bet
son said.
The Jones act require? the approv
of the board to agi"eements under whic
government-owned vessels are opera
cd, but no Shipping Board vessels ha
been allocated to the Harriman cot
pany. the chairman said.
All agreements entered into for tl
operation of American vessels mu
ed with the board, however, at
! phases passed upon, befo
thi y can be carried out, Admiral Be
son said.
lie explained that it was part, of t
contract made between the Shippi
Board and the United States M
Steamship Company that the oner;
; must have the appro1
the board to any contract it <
nto for the operation of t
cat? d to :; by the board.
tch agreement exists betwt
? .aril and the Harriman Compa
ral Benson said. When the IT
riman Company finally made ?t? c
tract with the German company,
. ;. Mr. Harriman was under no c?
pulsion to file a cup y of the agi
? . nt with the Shipping Board, but
so voluntarily.
"Mr. Harriman is an independent
. rat er and can do a : he pi? a? es, '
' Benson said. "It may be po
hie. however, that at some future t
it.- will ask the board io allocai e ?
vessels to his unes and then, of cou
the beard would have to approve
iment before -Mr. Harriman c
e ship-."
THE STORY OF REVILLON FURS
Seal Pup
in a Blizzard
This Bay seal pup was born in an ice storm
which has matted his coat with frosty par?
ticles but will not harm him in any other
way. For about six weeks he will stay on
the ice, after* which he will crawl to the
nearest creek and take his first swim under
the instruction of his mother. At the same
time he will learn to pick up his own living
from the fish and shell fish which abound
near land. This unusual photograph was
taken near a Revillon Post in Hudson Bay.
Wemloiiireres
<UTA*U1?C0 t>U
Fifth Avenue at 53rd Street
II. I. Republicans Assail
Wilson, Denounce League
San Souci Nominated for Gov?
ernor and Colt's Son-in-Law
for Lieutenant Governor
PROVIDENCE, >ct. 6.?The platform
adopted at the Republican State Con?
vention here to-day declared opposition
"to the League of Nations as presented
to the Senate by the President of the
United States."
"A super-government over the Con?
gress of the United States," the plat?
form said, "cither in declaring war oi
in interference with r >; n Doc?
trine, will never be sanctioned by th?
voters of Rhode Island."
The platform condemned the Demo?
cratic national administration of the
last seven years for "n lack of pre
paredness for both war and peace," anc
denounced "the domination of the pub
lie affairs of our great nation by one
rnari,'' charging ?e Cire, i.x-?u'.wi
with "a misconception of his true re
lation to the several branches of ou:
government."
Lieutenant Governor Emery J. Sai
Souci, of Providence, was nominatec
for Governor without opposition, anc
Colonel Harold J (I o s. pr . mee
a son-in-law of United States Senato
Le Baron A. Colt, was nominated fo
Lieutenant Governor. Secretary o
State Parker, Attorney General Her
bert R. Rice and State Treasurer .Ion
nings were all renominated.
At the Congressional district conven
tions all three Representatives--Ciar
C. Burdick, Walter R. Stiness and Am
brose Kennedy- were renominated.
Pussyfoot Flees in Taxi
When Mob Storms Hal
English Croxcd Hurls Bomb
Containing Foul ? Smellin
Chemicals in Demonstratioi
LONDON, Oct. th William E. (Pu:
syfoot) Johnson, the American tempe:
anee advocate, narrowly escaped fro:
an angry crowd which interrupted or
of his temperance meetings last nigl
at Reading, Berkshire, and tried
break through the locked doors of tl
hall to reach him. according to a Rea.
?hg dispatch to The Evening News t
day. The crowd also threw boml
containing foul-smelling chemicals.
The police had to be called out
prevent serious disorders. John se
escaped with detectives by the re
exit of the hall through a graveya
to a tax i cab.
Strong, though less violent, oppot
tion to Johnson was reported frc
Wales recently.
In November last William E. Joh
son was dragged from a platform frc
which he was lecturing in London
"The Why and How of American Pi
hibition" by medical students w
beat him severely and paraded throu
two miles of crowded West End stree
with Johnson on a plank. During t
"ragging" by the students Johns
suffered such serious injuries to I
right eye that it was necessary to
move it in order to save tho sight
?he other.
Judson's Bond
Deal Profit Put
At $840,000
Witnesses at Inrjuiry Into
Purchases by the State
Ctymptrollcr's Office Give
Broker a Biji Margin
_
May Run Over a Million
Swann's Assistant Says Evi?
dence in His Possession
Will Swell the Sum
Evidence yesterday in the John Doe
investigation being conducted by Dis?
trict Attorney Swann into bond pur?
chases made by the State Comptroller's
office for the state sinking funds indi?
cated that the purchases of securities
made through Albert L. Judson, reach?
ing a total of approximately $28.000,
! 000, had netted him a profit of about
j $840,000.
P'erdinand Pecoro, Mr. Swann's as
, sistant, who is handling the inquiry
I for the District Attorney's office, said
| at the conclusion of yesterday's pro
i ceedings before Chief Justice Kerno
chan, in Part. VI of the Court of Spe?
cial Sessions, that evidence still to be
introduced would bring Judson's profit
on bond transactions for the state up
to a figure in excess of $1,000,000.
William S. Fanshawe, a bond broker,
who has been selling securities to the
state through Judson since late in
1915, told of one transaction in October,
i 1916, in which bonds of a par value of
i $3,574,900 were sold to the State Comp?
troller for $3,503,799.05. These bonds
?cost the dealer $3,332,482.05, which, it
i was brought out, left Judson a profit
of $171,317.74.
Profits Keep Growing
The total of bond transactions made
by Judson for the state sinking fund
and the profits the bond trader made
on them continued to grow as Fan
shawe and other witnesses described
; his financial operations. In the morn
' ing session Bertram Cruger, treasurer
of the Metropolitan Trust Company/
; told of one deal on which Judson had
! made $3,300.
It was also brought out in yester
I day's proceedings that among collateral
I deposited by Judson with trie Metro-,
!politan Trust were 100 shares of the
Journal Publishing Company, of Al
' bany, of which William Barnes is the I
i head. Mr. Cruger testified yesterday
i that for clearing approximately $10,
. 000,000 worth of bonds which Judson
'purchased for the State Comptroller j
j his concern? received only $250 in fee?,
and this charge was made only on the
: last transaction., in the spring of l!'2i>.
When William S. Fanshawe was
called, Justice' Kernochan held a con
! sullation with Assistant District At
j torney Pecoro and then informed the
i broker of his right to refuse to answer
any questions that might tend to in?
criminate him. Mr. ' Fanshawe an
I nounce.d that he had come to court as
j a voluntary witness and would answer
i any questions that -would assist the
I District Attorney's office in its effort
! to discover whether a crime had been
committed in the bond transactions
conducted by the Stale Comptroller's
eftice.
Tells of Big Profits
The witnes? indicated that the bond
transactions carried on through Fan
; shawe & Co. were credited to the ac
l count of Judson, although the. letter's
I name did not appear on any of the
| checks or in any of the correspondence
[ passing between the house and the
Comptroller's office relative to the bond
purchases. Mr, Fanshawe said hoi
bought bonds at the request of Judson I
and his firm carried the securities for i
the Comptroller's agent without re-1
quiring any payment from the latter.!
He said that the only profit which the
brokerage firm made out of these trans?
actions was the commission, which
varied.
The final transaction between the
state and Fanshawe & Co. was com?
pleted in November, 1917, and amount?
ed to $2,013.000. On this deal the wit?
ness said his firm had lost $88,000. In
October, 1916, the witness said, Judson
informed him that the Comptroller i
would be rendy to purchase bonds
amounting to $4,000,000 during the fol?
lowing month, and on this information
Fanshawe said he went to work to ac?
cumulate the specified bonds. The
bonds were on hand at the stipulated
time, but. Judson then said that the
Comptroller was not prepared to carry
out the purchase because of lack of
funds. ' ?
Fanshawe Tells of Losses
Judson kept putting off the time for
closing the deal, the witness declared,
until the fall of 1917. Then; after a
conference with Comptroller Travis, an
agreement was reached whereby the
state was to take up $2,013.000 'worth
of the accumulated $4,000,000 worth of
securities, on the condition that the de?
livery of the balance bo waived by Fan?
shawe. The witness said that the state's
j failure to take up the bonds at the time
agreed upon had entailed a heavy loss
because of the drop in the market price
of municipal bonds which occurred
shortly after the outbreak of war.
Mr. Pi-coro brought out that during
the interval in which the bonds were
being held they were carried for Fan?
shawe by the Empire Trust Company.
When the prosecutor endeavored to ob?
tain from the witness a statement of
whether the loss of $88,000 had actu?
ary been borne by him Mr. Fanshawe
I objected, and Judge Kernochan de
I cided that for the time be in yr the ivit
i ness would not have to answer the
j question.
The name of Deputy State Comp?
troller Wendell was mentioned by Fan?
shawe as possibly being- one of those
with whom he discussed this last sale
of bonds during his frequent appeals
to the Comptroller's office to take the
securities of? his hands. He said that
every time he called up the Comptrol?
ler's office he was informed that the
state was without funds.
Pincliot Backs Harding
To End On?-Man Rule
Declares Country Must Have a
President. Not a Boss, ?n
the White House
Gifford Pinchot, one of the most
earnest of the Roosevelt, followers and
an original Progressive, in a statement
sent to The Tribune yesterday, explains
why he is supporting Harding and
Coolidgc in the present campaign. He
says:
"I am a follower of Theodore Roose?
velt, alive or dead. While he was here
1 worked with him and supported him.
Xow that he has pone to his reward, I
stand for the principles and work for
the tilings for which he worked and
stood. I am a Roosevelt Republican.
"Senator Harding was not made to
my order, but he is by no means the
reactionary I thought him. He is a
Republican regular, who supports what
his party agrees on and acts with the
majority. There, is nothing autocratic
about him. ITnder him there will be no
one-man rule at Washington. Congress
will represent not the President '-. t
the people, and the government will be
American again.
"I want to see Harding elected not
only because I have come to think well
of h im, hut because he belongs to the
party of Lincoln and Boose",-it, and be?
cause 1 have had my I'll of the Pcrtio
crats at Washington. We must have in
charge men arid a party capable of run?
ning the government, and in the White
House a President, not a boss.
"Cox is too reckless in statement, too
shifty in argument, too much like a
; man running for a little office in a lit
1 tie town. Ihs speeches shout it aloud -
* Cox is too small to be President. Hard
; ing's speeches could have come only
?.'rom a man big enough to handle the
job."
cCu?eheori
Sweaters, Scarfs and Hats
of Camel's Hair
T IGHT as a thistle, cosily warm, softly brown
?^"^ as frost-tinged oak leaves, Camel's Hair be?
comes a part of autumn itself?most essential to
the correct fall wardrobe.
Bts Trade Hark
Sweater Sets
The woman who desires a truly effective sports costume will
be delighted with the new Camel's Hair Sweater Sets, includ?
ing Sweater, Scarf and Hat; the one emphasizing the smart?
ness of the other. As a suggestion, a most acceptable gift.
Scarfs?a Chic Flare of Color
for Suit or Frock
In Wool, Silk or Camel's Hair, the Scarf may be selected to
harmonize or to flaunt a vivid color note against a dark
costume.
Sport Hats
Out-of-door smartness characterizes these new Hats. For
wear with Sweaters of Wool and street costumes, there are a
number of models?all exclusive with McCutcheons.
And to Complete the Costume?
English Sport Hosiery
For sheer comfort, Woolen Hosiery has become an essential
necessity of the sports costume. We are now featuring the
newest and smartest effects in light, medium and heavy
weaves just imported from England.
Fifth Avenue, 34tb and 33rd Streets
Third-Day, Total
Smashes Records
For Registration
Men Outnumber Women 5
to 2 in Several Districts
Figures Show 491,949 Al?
ready Have Visited Booth
Again New York City smashed all
previous registration records yesterday
The total number of registre*\? in th
greater city on the third day -?: r? i .
tration was 182,295, an increase o
53,40,3 over 1919, when 128,803 estab
lished a record. The total for the thr?
days in the five boroughs was 491,910
This was 90,117 more than a year : .
when 401,832 registered in the ins
three days.
All five boroughs established it
vidual records. Manhattan led in ti
registration gains?-numerically- in I
three days, with 185,292, an increase ?
38,399 over last year's first three day
Richmond, which had but 9,930 in tl
three days this year, took the prize, :
it represented a percentage incr a.
mort than 27. -
Queens and the Bronx were a clo
second, with a 26 per cent me--..
Manhattan's gain represent 25 perci
Brooklyn, which led Manhattan
more than 8,000 on the third day '..
year, was more than 6.000 behind b
rival at the close of the pi Ils la
night. While Brooklyn was second :
numerical gains, her proportion!".-- in
create was the smallest in the cit
representing but slightly more thai
10 per cent over last year.
The women, as on the two previo>
days of registration, failed to come < -
in 'heir full strength. In many '
tr cts the men outnumbered the w ira
live to two. But it is expected t!
the women will make up f r the *????
ness to-day, Friday and Saturday. Th?
polls open to-day ami to-morrow a
o'clock in the afternoon, and close
h*lf past 10. Saturday they will op
at 7 in the morning and remain ope
until 10:30 at night.
Yesterday's registration in the cil
compared with that on the third -:
of registration in the two precei lit
years, and in 1916, follows:
Boroughs. 191
a;..: hattan . . 41,:
,9 in ::.:?< < ; ? 050
,614 4S.027 19,081
10,11
? - ?! 126,793 1 ..-. ?
The total registration for the thre
days, with figures showing the regis
tration during the lirst three days of
1919 and 1918, and in the last Prest
lential campaign, follows:
Borough. 1916. 1918. 1913 19.
Manhattan 140,940 132,211 116.754 185.1-0
Rroax . 47,167 4.".. ?50 54,762
Hi.klyn . . . I.' 1. : ?< V 130,165 154,046 173 '
Quoens . 30,31 0 31,2 '??' 38, 176
it; hmond .. 6,841 6,3( -i 7,79 1 :? :
Total .... 356,545 345,234 101.S : 131
G?nerai Strike Called
Throughout Portugal
Outbreak Reported To Be Rev
olutionary; Railroad?-, and
Mails Tied I p
LONDON, Oct. 6. The Madrid cor
respondent of Reuters, Ltd., says intel
ligence from various points on th
frontier indicates that a general strut?
apparently of a revolutionary charac
tor. has broken out in the whole of
Portugal.
MADRID, Oct. 6.?Reports from Por?
tuguese railroad officials here say th
entire force of railroad men in Portu
gal declared a general strike Tue day
morning in consequence of the arrest
of the men's committee. All mai^s and '??
other methods of eemmunication h:v
been suspended.
At SAKS To-dav
A Sale of
s ran nais
%egularly $7 and $8
oAt
1500 SOFT HATS?every
y ne perfect and in the
most approved Fall styles,
including the popular
narrow brim with wide
band and binding ? as
pictured. Colors: Seal,
Havana, Slate, Pearl,
Green and Black.
600 DERBIES?Black and
new shades of Brown.
c?\pne C.O.T). Exchanged or on Approval
Broadway at 34th-Street
ijk, ??Sr
ni* l
?aks&QJampcmy
V
Direct Particular Attention to their
New Chauffeurs1 Liveries
for Fall
Exclusive Saks Productions!
Typical Saks Values!
rFHE finest car on the road is invariably piloted
by a Saks uniformed chauffeur?because owners
of fine cars show as much discrimination in the selec?
tion of their chauffeur's uniform as they do in the
selection of a car.
For years our models hare shonn definite leadership
None are tailored with the same skill . . . and seeing
that Saks apparel for chauffeurs never costs more, why
consider the commonplace ?
Suits of Whipcord ..... $55 to $85
Suits of Fine Cheviots .... $70
Suits of Blue Box Cloth .... $85
Overcoats of Heavy Overcoating or Whipcord
?wool lined . . . . . $55 to $95
Overcoats of Blue or Black Boxcloth . . $85 to $125
- Sixth Floor
Broadway SnkS&CCOHtJIiUtlJ ^'34thStreet