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The New York herald. [volume] (New York, N.Y.) 1920-1924, May 11, 1921, Image 1

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MAY 12 19
WEATHER FORECAST.
Fair to-day; to-morrow unsettled, with THE NEW YORK HERALD ???-?=
THE BEST IN ITS HISTORY.
showers; no change in temperature.
Highest temperature yesterday, 73; lowest, 57. ~ " ??= w*"
Detailed weather reporta will be found on udltorlal sub. lOOPYBIUUI. 1921, BY THE aUN-HIBALO 0 O R P O B A T 1 O N.] and SOUnder newspaper inan ever DCIorc.
best of The Sun intertwined with it, and
the whole revitalized, is a bigger and better
VOL. LXXXV.?NO. 254?DAILY. ... NEW YORK, WEDNESDAY, MAY 11, 1921.-UI^D0,'?<?C2J? PRI<2F?iJYXS ciP"3 \
CITY HELD DP FOR
$444,000 IN JOB
ON NEW HOSPITAL
Lockwood Investigators
Hear How Contractor Got
50-50 Split of Profits Af
ter Going Bankrupt.
ADVISED HIS SUCCESSOK
With $219,000 Work Un
done on Cumberland St?
Brooklyn, Building Best
Bid Was $663,000.
UNTERMYEBrBARNES TILT
U. S. Attorney's Office Scored
for Failing to Prosecute Bid
ders on Plumbing for the
Government.
Amazing evidence of pyramiding
of city contr&ots in connection with
the new Cumberland Street Hospital,
Brooklyn, vu brought out yesterday
by Samuel Untermyer, chief counsel
for the Lockwood legislative commit
tee, through witnesses whose examina
tion began shortly before adjourn
ment That phase of the inquiry will
be continued to-day.
Besides showing how the city had
been forced to enter into a contract
for $663,000 to Complete work on the
hospital that would have cost only
$219,000 by the original contract, the
further disclosure was made that the
defaulting contractor had entered into
an oral agreement with his successor
to split the profits, estimated at $100,
000, on a fifty-fifty basis.
Under the original contract the hos
pital was to cost the city $567,000.
After 65 per cent, of the work had been
completed and $238,000 paid, the con
tractor defaulted, leaving to be done
approximately 35 per cent., or about
$219,000 worth of work. The high
est bid received to complete the con
tract was for $745,333 and the lowest
$803,000.
These disclosures, with further revela
tions of the plumbing combine's hold on
the local market and testimony tending
to show reluctance on the part of the
United States District Attorney to press
for an Indictment in c<Cse of alleged pool
ing of bids for Government construction
work adjoining the Brooklyn Navy Yard
were the outstanding features of yester
day's session.
City Contract for fR67,OOtl.
The Cumberland Street Hospital mat
ter dates back to October, 1917, when
the Department of Public Charities en
tered Into a contract with Albert Wln
ternltr for the construction of the Insti
tution for $557,000. The city was indem
nified by surety bonds amounting to
about $125,000, Winternltz by hla own
statement at that time being financially
reaponslble. In November, 1919, after he
ubandoned the contract, the city adver
tised for new bids for the $219,000 un
finished portion of the work and awarded
a contract to the One Hundred and Sev
enty-fourth Street Construction Com
pany, which was the lowest bidder, at
$863,000. The new contract was awarded
September 28, 1920, and executed a
month later, it being signed by one Ig
natz Roth as president of the construc
tion company. Meantime Wlnterr.ltx, the
original contractor, haa gone into volun
tary bankruptcy.
Through Winternltz, who signed a
waiver of Immunity, Mr. Untermyer
brought out yeaterd&y that on Septem
ber 15, 1920, a few days before the
'award of the new contract, the witness
had been Introduced to Ignatz Roth by
hla brother-in-law, Herman Seplow. The
witness admitted that oral agreement
had been entered Into at that time to
divide the profits on an equal basis if
Roth's company should be the successful
bidder. Winternltz Identified a claim,
which, it was said, however, was later
withdrawn, filed with the City Comp
troller on the basis of this oral agree
ment.
This claim sets forth that In consid
eration of certain knowledge transmitted
to the 171th Street Construction Com
pany by Winternltz concerning the Cum
berland Street Hospital contract the
company agreed to pay Winternltz 50
per cent, of the profits, estimated at
$100,000. The subcontractors Identified
with Wlnternltz'a original contract also
appeared In the new contract made by
the rlty with Roth's concern.
About this time, while Wtnternlts ad
mitted he was In financial difficulties,
he organized the Berwln Construction
Company with a capital of $5,000. His
associates in the Berwln Construction
Company were Frank Merger, whom
Winternltz could not Identify any more
definitely except to say that he had
money; Oustav Feldman, a bookkeeper
for an electrical concern, and Charles
Hlavaky, a clerk In a Third avenue re
tall radiator company.
Forgets How He Got Money.
After considerable coaching by Mr.
1 ntermyer Winternltz admitted he had
started the company by depositing some
money with a branch of the Chatham
and Phenlx National Bank. He could
not remember how much money, or
where he got It. All he could recall was
that he and his three associates together
hsd put up $5,000, organized and en
lered Into the agreement with - Ignatz
Roth's 174th Street Construction Com
pany, which to date It was shown had
received $135,297 from the city on ac
count of Its $663,000 contract. At this
point in the testimony the committee ad
journed until to-day.
Oral tilts between Mr. Untermyer and
Karl B. Barnes. Assistant United States
Attorney. In which Senator Charles C.
T^x-kwood occasionally Joined, marked
the testimony of Elliott C. Brown* presi
dent of an englrieerlng and construction
cmpany bearing hla name, and who was
a Commander of the Naval Reserves In
charge of conatructlon work at the
Brooklyn Navy Yard during the war.
The witness testified that when he
?<>ught bids for the plumbing work for a
Continued o? 4 V4* 4-agd.
WOMEN JURORS FIND
MURDER INDICTMENT
Bill Returned Within Half Hour After Mrs. Laura
White, as Jersey's First Feminine Foreman, Calls
Body to Deliberate on Case at Mays Landing.
Special Despatch to Tub New Yoik Hehai.d.
Atlantic City, May 10.?Half an
hour after the May term of the At
lantic county Grand Jury convened at
Mays Landing:, N. J., to-day, with
Mrs. Laura White, wife of Judge John
J. White of the New Jersey Court of
Errors and Appeals, as foreman, an
indictment charging murder was re
turned in the case of Joseph Veil, ac
cused of shooting Daniel Matinella at
Buena Vista March 17 last. There are
three other women serving on the
Grand Jury.
Mrs. White is the first woman to
head a New Jersey Grand Jury. She
was appointed by Supreme Court Jus
tice Charles J. Black, and accepted
without hesitation. She is prominent
in social and civic life and is a regular
director of New Jersey's Association of
Republican Women's Clubs.
The Grand Jury term promises to
be interesting in view of a prospective
investigation of the expenditures of
the Board of Freeholders in Atlantic
county. The January Grand Jury
made an investigation but found noth
ing to warrant indictments. In charg
ing the new Grand Jury, however, Jub
tlcc Black suggested that "it might be
wise" for the jury to go over the Free
holders' affairs. He said he had no
knowledge that would justify any
statement derogatory to the present
Board of Freeholders, but the grand
Jurors were guardians of the county
government and should be watchful.
Besides Mrs. White the women Jurors
are Mrs. Lydia M. Leeds, wife of
Henry W. Leeds, head of the Chal
fonte-Haddon Hall Hotel Company of
Atlantic City, who, like Mrs. White, is
a Friwid; Mrs. Caroline Barnshaw,
wife of a detective captain of Atlantic
City, and Mrs. Helen Abbott, wife of
the Atlantic county Surrogate. Mrs.
White and Mrs. Leeds affirmed the
oath of a grand Juror.
WOMEN ARRESTED
IN WHISKEY RAID
Murray Hill District Invaded
and Girl Carrying Bottle
is Seized.
FBIVATE HOUSE ENTERED
Detectives' Act After Watching
Place for Several Days?Po
lice Placed on Premises.
Detectives of Inspector Underbill's
staff In the Fourth district Invaded
the outskirts of the Murray Hill dis
trict yesterday and in the house at
145 East Thirty-eighth street arrested
two young women a?d confiscated
what they described us eleven bottles
of liquor. The raid followed a week's
surveillance of the house. It was ex
plained at the East Thirty-fifth street
station, where the prisoners were ar
raigned. Both of the young women,
according to the police, were Uidignant
over the action of the detectives, one
of them saying she saw no harm in
wrapping up a bottle of liquor and
carrying It under her arm.
One of the prisoners, who described
herself as Miss Sarah Shepherd, 28. one
of the residents of the East Thirty
eighth street house, told the detjctlves
that she drove an American army am
bulance in the earljapart of the war and
won distinction from the French Gov
ernment. The other, describing herself
ns Miss Claire Fiance, 24, of 420 West
156th street, said she was a stenog
rapher, employed by "Mr. Katz." a law
yer. At the West 13?th street address
Claire Fiance was not known, but the
father and brother of Clara Fiance, 18.
stenographer for Martin Catts. a law
yer, wire found anxiously awaiting her
return from business. They said they
had heard nothing of the raid.
Miss Fiance, the police related, was
leaving the house whera the raid was
made when Detectives Dowd and Drole
sky stopped her.
"What have you got in that package?"
Dowd asked, pointing to a bundle she
carried undir her arm.
"Whiskey," It Is said she answered
with a bright smile and a shake of her
bobbed hair.
"Rye or Scotch?"
And It alleged further that Miss Fiance
giggled and said her bundle was a bottle
of Scotch.
She was led back to the front door
and a young woman standing in the hall
udmitted her and the defectives. It was
said that Miss Fiance told Dowd that
she had got the whiskey for her em
ployer. "Mr. Katr," and that It was
given her by Miss Shepherd, the young
woman at the door.
The house was searched then and it Is
charged that the other bottles were
found on the second floor. Miss Shep
herd was arrested then and taken with
Miss Fiance to the police station.
Less than an hour after the arrest a
modlshly dressed women went to the
station and asked how much hall was
required for the prisoners. She was
told ball of J500 was needed. She
reached Into a handbag and extracted
five $100 Liberty bonds and placed them
In front of Lieut. Charles Hecker. She
said she was Mlsa Grace Parker, a
friend of Miss Shepherd, and that she
lived In the East Thirty-eighth street
house. The bonds were accepted and
Miss Shepherd was freed. Soon after
ward Miss Fiance was balled out by
the National Surety Company.
A policeman was stationed in the hall
of the raided house and It was said at
the Inspection district headquarters that
he would be kept there unUl the two
oases have been disposed of.
FRANCE TO JOIN U. S.
ON DECORATION DAY
Will Send Troops to Pay
Honor to American Dead.
Bu ">? A$gnciatrd Prtif.
Paris. May 10.?The- French Govern
ment and the French Veterans Associa
tion will cooperate May 80 In American
Memorial Day services over the 50,000
graves of American war dead In France.
The Government desires to send detach
ments of French troops to pay honors
over the American graves and the
Veterans Association has arranged to
send delegations to eighty-seven places
where Americans are buried. The
limited American facilities will only
enable the memorial committee to hold
exercises In about forty-eight oemeterles.
The principal observance from the
public point of view will be at the Arc
de Trlomphe In Paris on Sunday, May
29, where contingents of the American
forces from Coblen* will take part.
The Oreenhrier, While Sulphur Hprlngs.W.Vs.
Ameries'n beml ft?th? Tdesl 'llmstlc rrm
Sit Ions. Golf, Tennis, Riding. Swimming.?Adv.
STIILMANS' MAID
DENIES NOTE THEFT
Wife's Lawyers Say Missing
Miss Kelly Is Found and
Supports Her Side.
SECKETET) UNTIL TKIAL
A $60,000 ChpcJt Passed in
1918 or 1919. When Banker
Was 111, Is Discussed.
Mary Kelly, the former maid in the
home of James A. Stillman, and who
disappeared soon after Mr. Stlllman'e
divorce action was begun, has been
found, It wus learned yesterday, aryi j
will take the stand for Mrs Anne
Urquhart Potter Stillman and her j
thirty-months-old son, Guy Stillman. j
Lawyers engaged in Mrs. Stillman's j
defence are banking on Miss Kelly to
destroy the legal value of much of the j
testimony already submitted in the;
banker's behalf and particularly that j
part of it which affects the legal rights
of baby Guy.
Miss Kelly wus reported as being In
Europe and it now develops that she |
actually was there. She heard that
she hod been accused of stealing from
a drawer in Mrs. Stillman'? bedroom
the seven letters alleged to have been
written by BVed Beauvais, the core
spondent, which figure prominently in
the case, and wrote to Mrs. Stlllman's
lawyers that the statement was un
true.
A series of letters passed between Mian
Kelly and the lawyers, It Is said, with
the result that she returned to this
country, arriving here a few weeks ago.
Her movements were guarded so the op
position would not learn of her pres
ence here. She went to a town within
100 miles of the city and will remain
there until called upon to testify.
Both sides have been searching for
the maid since the suit was begun, as
both considered her testimony of vital
Importance. John B. Mack, guardian
aid litem for Guy Stillman, was particu
larly anxious to get hold of her because
she Is one of the few persons who can
say whether -Mr. and Mrs. Stillman lived
under the one roof during the early
spring of 1918.
Although of the same name, Keliy, the
former superintendent of the Stillman
estate and Miss Kelly a<e not related.
They were employed by the Stillman
family about the same time, but Miss
Kelly continued as Mrs. Stlllman'fi maid
long after the superintendent had left.
Kelly was superseded by Beauvais In
the management of the Stillman proper
ties in the autumn of 1919. It Is un
derstood that Miss Kelly was the maid
who accompanied Mr. and Mrs. Stillman
to this City In April, 1918. when the
banker was almost continuously in the
company of Mrs. Stillman during the
period of the allegations that affect Guy
Stillman.
Detectives working for Mrs. Stillman
are searching for a nurse who Is under
stood to have attended the banker dur
ing a short Illness he had some time in
1918 or 1919.
Mr. Stillman. according to the Infor
mation In the hands of the lawyer, was
confined to his home in this city for
several days. Mrs. Stillman then was
at the family residence In Pleasant
vllle. Soon after the banker regained
his health a check for $60,000 passed
through the hanks, which has become
of interest to Mrs. Stillman'* lawyers.
Lawyers following the Stillman suit
have been discussing recently an action
that appeared ,n the courts In 1918. In
this case a woman sued for divorce and
the husband set up an affirmative de
fence. as Mrs. Stillman does. The ref
eree found both parties guilty of the
charges alleged and there consequently
was no decree.
The woman subsequently started an
action for separation, alleging desertion.
The lower court granted her one and
allowed her alimony, but an appeal was i
taken and the Appellate Division ups?t
the findings of the lower court, stating
she was not entitled to a separation be- 1
cause the evidence adduced In both pro- '
cecdlnge was the same.
It Is oonsldeied likely that the third
hearing in Stillman vs. Stillman will be
held In the chambers of Daniel J.
Oleason, the referee, at F'oughkeepsle
on May 18 or 19. Mr. Oleason Is Sur
rogate of Dutchess County and his du
ties as such demand his continued pres
ence In Poughkeepsle, the county seat.
He also Is not in the best, of health and i
recently Injured lils leg In an accident, !
which has since compelled him to walk
with a cane.
dAT do you do "hen you loss nornet hfhy
aluablsT First thlriR lots of people do l?
Insert sn sd In The Heralds fesst and
und column Telephone Clislsta ksjo. Attv.
HIDING RESCINDS
WILSON ORDER ON
POSTMSTERSHIPS
Billing Says Placing Posts
Under Civil Service Is
Legislative Act.
ANNOUNCES HIS POLICY
All Appointments to Be
Made After Open Com
petitive Tests.
LEGISLATION LOOKED FOE
Opposes 'Cloistered, Scholas
tic Examination,' but Seeks
Efficiency.
Special Ve,patch to Th. Nxw Yoek Hbuld.
?w York Herald Bureau. )
Washington, D. C.. May 10. )
President Harding issued an ex
ecutive order to-day rescinding the
order of President Wilson putting all
first, second and third class postmas
ters in the classified civil eervice.
The Wilson order would have given
a full tenure to all Democratic post
masters appointed under the Wilson
Administration.
The Harding order provides that all
existing vacancies he filled by ap
pointment of a man in the classified
civil service, or by the appointment of
a man who shall be among the first
three recommended for appointmont by
a civil service examination.
President Wilson's order was re
garded as a political trick to remove
postmaster* from Executive patron
age. President Harding, in meeting
tjie issue, expressed the opinion that
such appointments should be governed
b*r Civil Service law, but that the plac
ing of the appointees under civil ser
vice was a legislative and not an Ex
ecutive function. Civil eervlce pro
cedure is to be applied to all places,
urder the Executive order, which pro
Vi<-'When a vacancy exists or hereafter
occurs in the position of postmaster a.
an office of the first, second or third
class, if such vacancy is not filled by
nomination of some person within the
competitive classified civil service who
has the required qualifications, then the
Postmaster-General shall cert y "
fact to the Civil Service Commission,
which shall forthwith hold an ODen
competitive examination to test the fit
ness of applicants to fill suln vacancies,
and when such examination has be.-n
held and the papers in connection there
with have heen rated, the said com
mission shall certify the results thereof
to the postmaster-General, who sha
submit to the President the name, ot
one of the highest three qualified
eligible* for appointment to fill such
vacancy unless It Is established that
the character or residence of any such
applicant disqualifies him for appoint
ment.
Reappointment Allowable.
-Provided. That at the expiration of
the term of any person appointed to
such position through examination be
tothe Civil Service Commission the
Poirtmaster-General may In his discre
tion submit the name of such Person to
the President for renomination without
further examination.
"No person who haa passed his 6?th
birthday or who has not actually re
sided within the delivery of such office
for two years next preceding shch va
cancy shall be given the examination
herein providled tor.
"It under thU order, it la desired to
make nomination for any office <it a^per
son in the competitive classified service
such person must first be xound by the
Civil Service Commission to meet tno
minimum requirements for the office.
A statement given out at the White
House explaining the order said :
"There are 62.332 postmasters. or
these 39,433 are in the fourth class and
are now under such civil service laws
and regulations as bring them within
the privileges and conditions of
classified service.
"Of the remaining 12.399 por, offi es.
700 are first class, 2.617 are second class
and 9,532 are third class. ()bvl?u"ly'
these offices are business agencies of the
Government In legal purrosc and "hnuld
I become so in fact. The only certain ulti
mate way to bring this about Is to classify
first, second and third class postmasters.
Purpose of Examination.
"Moving In that direction, however,
the executive order Issued to-day pro
vides that If any such vacancy Isi not
filled by nomination for promotion of ???
from within the competitive class f ed
civil service, then an open competitive
examination shall be held and t le ap
polntment shall be made from one of the
highest three ellglbles, as required now
bv law In the classified civil service.
"Under this order the kind of test
and plan of Inveatigstlon and
tlon which shall be provided for -ha.
he approved by the President, and shall
he based on the applicant's business
training, experience, fitness, organising
and executive abtMty. and genera!
flcatlons for an efficient administra
tion. and shall In no sense be a eoiis
tered. scholastic examination whl..h
might result in a high grade in theory,
but not a guaranty of efflcleney In (Act
"This order applies to alt present in
cumbents of post offices, whose terms
have expired and will apply
Incumbents as their present terms ex
pire."
GERMANS YIELD EVERYTHING;
AGREE TO PA Y$33,750,000,000;
NEW CABINET IS MAKESHIFT
ESSEN WORKMEN
URGED TO RESIST1
Walls Placarded Against 'De-;
mands of Lying Agents of
Entente Capitalists.'
BANKS REMOVE PAPERS
Unionists Scoff at Promises of
Cheaper Food and Wine in
Ruhr Regions.
Bu the Associated Press.
Essen, May 10.?The Unitod Work
men's Union has placarded the walls
urging all workers to "resist the de
mands of the lying agents of Entente
capitalists."
The union "scorns the allied prom
ises to bring the miners better and
cheaper food and wine," but says that
all workman in the Ruhr are ready to
help rebuild the devastated regions.
Posters also appeal to all native born
Upper Sileslans to Join the Silesian
police, being organised at Hagen, "to
save Upper Silesia."
The branches of the Deutsche Dros
dner Bank have been removing in the
last few days some of their documents
and books to Berlin. The Municipal
Council, upon the return of the Burgo
master, Dr. Luther, from Berlin, has
decided not to remove the city ar
chives, as they are of no interest to
the Allies.
Dusheldorf, May 10.?"Our relations
I with the French authorities thus far
have been correct on both sides," Dr.
Grutzuck, President of the Provincial
Government of Rhenish Prussia, In j
which the Ruhr is situated, Informed the
correspondent of the Associated Press
to-day. A number of questions regard
ing the present situation had been sub
mitted to President Grutzuck, but he
was not willing to be quoted, and dele
ga'ed four State Councillors to receive
the correspondent at the State House.
Based on the Councillors' conversation,
the 'ollowlng may be taken as the Pro
j vlnclal Government's official viewpoint:
I Officially the Government knows noth
i lng incorrect regarding the behavior of
I the French troops, although It Is said
! the population feared to make com
plaints. The trouble tn this district lias
been caused mostly by what is deemed
, the excessive i "qulsitionlng of apart
? ments and residences for officers and
! non-commlssloned officers,
i In the event of further occupation by
the Allies the Provincial Government
; will continue to supervise local affairs.
provided there Is nothing Incompatible
' with their oaths as state employees.
The Government will cooperate with the
: -bench authorities and the French anil
British mission charged with operating
I the Ruhr mine industries, but. It was
: pointed out. "only because the members
of the Govrrnment are menaced by
! court martial and heavy penalties If
| they refuse," thereby bowing to force.
There is not a single member of the
j Reichswehr In the immediate vicinity of
| the Ruhr, unless there be some on fur
! lough.
TROOPS IN MUEHLHEIM
ONLY REENFORCEMENTS
France Explains That A</?
vance Has Not Yet Begun.
Paris, May 10.?Taking cognizance of
?rman reports that French troops had
cupled various localities within the
wn of Muelhelm, on the Ruhr River,
ml-offlcial French sources to-day ex
.ltned that any such move did not In- |
eate that an advance Into the Ruhr
id been begun.
"N'o advance of troops has as yet
ken place In the Ruhr." the semi- J
Icial statement read. "The units
ady for action have been reenforced, I
is being true of those of the troops
lo were In Muelhelm."
CHAPLIN BURNED IN
LOS ANGELES STUDIO
7alls Over Blow Torch and
Trousers Catch Fire.
Los Angeles. Cat., May 10.?Charlie
Chaplin was painfully but not seriously
burned at his motion picture studio here
to-day when he fell over an acetylene
blowtorch, which was part of the "set' |
In which ho was working.
His trousers caught fire and he was
burned from ankles to waist.
A torch similar to the ones employed
by regular plumbers was being used by
sn actor plumber In a setting represent
ing a hotel Interior. Into the scene
walked Chaplin with his funny coat
and baggy trousers, derby hst and cane
His business was to stumble over the
torch and this he did. But he did not .
recover his balance as he Intended and
fell Into the bluish yellow flame. Hi* j
clothing was on flre In an InstAnt. Miss
Edna Purvlance was working In the
scene with him and helped Carl Robin
son, one of the Chaplin staff. In beating
Thinking of Buying a Car?
You will find dozens and dozens of used cara?all
makes?advertised Daily and Sunday in The Herald's
Automobile Directory. See want ad. section. Quick
buyers read these ads. If you are thinking of sell
ing, exchanging or buying a car make your WANT
known in Yhe Herald and get quick action.
THE NEW YORK HERALD
Telephone Chelsea 4000.
Wirth Tells Germany to Do
Her Utmost to Fulfil Terms
By tha Associated Press.
?ERLIN, May 10.?la bis speech to the Reichstag Dr. Wirth
said:
"In view of the termination of the time limit set by the allied
ultimatum, I must ask you to express your opinion by an immediate
decision. There is no possibility for us other than acceptance or re
jection. The victors have so decided.
"Acceptance means that we declare our readiness to bear in
voluntary labor the heavy financial burdens demanded year by year.
Refusal would, however, mean surrendering the basis of our entire
industrial activities, and, as a consequence, dismemberment of our
economic body, already so greatly weakened, and the shackling of our
entire industrial life."
"But the effects might be even more terrible for our political
existence and our realm.
"For these reasons the Government accepts the ultimatum. We
know that acceptance, by reason of the place Germany will occupy in
the economy of the world, will entail the gravest consequences. The
responsibility for this falls on the Allies.
"But there is one point iconcerning which there must be no ob
scurity. It would be useless to say 'yes' without the resolution to do
our utmost to meet the obligations imposed upon us. By acceptance
we believe we will remove the imminent threats of occupation of the
Ruhr. The fear often expressed that occupation will take place in
any case, whether we sign or not, is not supported by any passage in
the ultimatum.
"There is no need for me to show why, in taking the decision, we
ought to turn our eyes to Upper Silesia. In that respect we have firm
confidence in the results of the plebiscite.
"The treaty, which casts a heavy burden upon us, entails for the
allied Governments sacred duties, as the British Premier himself ex
pressly acknowledged recently.
"Ladies and gentlemen (there now are women members of the
Reichstag), the new Government, after reflection, advises you in all
confidence to accept the ultimatum."
POLES IN SILESIATO
START A REPUBLIC
Insurgents Planning to Estab
lish New Government and
Summon Assembly.
WARSAW DENIES IT AIDS
Says Frontier Was Closed as
Quickly as Possible and No
Troops Passed.
Bj the Aesoriate ' Preen.
Warsaw, May 10.?The Upper Si
lesian situation is reported by news
paper despatches to-day to have taken
a new turn, messages from Silesia de
claring that the executive committee
of the Insurgents Is planning to pro
claim the section* of Silesia now under
insurgent control an independent re
public.
The reported plan calls for the es
tablishment of a provisional govern
ment and the summoning of a con
stituent assembly.
The reports declare the executive
committee began negotiations with the
Interalllod Commission after the plans
were framed.
The Polish Government has formally
denied reports that Polish troops have
participated In the Insurrection and
contends that the frontier between Po
land and Silesia was closed as quickly
as possible, and that not even any irreg
ular troops crossed tlic border.
Newspapers of all shades of opinion
blame the recent demonstrations against
the British and Italian legations in
Warsaw, which have occurred repeat
edly during purades organized to ex
press sympathy In favor of the Insur
rectionists. on irresponsible labor lead
ers and other elements of the. people.
In the latest demonstration several
hundrd men who responded to a call for
Polish-Americans to uphold the Polish
claims In Klleula paraded the str-ets
carrying American flags, louring this
parade memorials were distributed urg
ing allied sympathy and Justice for the
Polish cause.
In Warsaw agitation In favor of the
Insurgents continues, but Is beginning
to show signs of moderation.
VON ARNIM'S 10,000
READY TO FIGHT POLES
Reichawehr Deserters Will
Try fo Crush Korfanty.
Paris, May 10.?A despatch to the
Havas Agency fr</m Ort><-ln says
Relchswehr deserters are forming tree
lance organisations between Breslau
?n dthe Upper HUenlan frontier. It Is
feared, the despatch adds, that about
10.000 of these troops, grouped In the
Kreushurg district under the command
of f}cn. von Arnlm, will march on
Rosenberg, which is now held by the
Poles.
Other reports say that aome 40,000
German irregulars are concentrated be
hind the frontier, ready to move on
May 12. when the allied ultimatum ex
pires, and drive the Korfanty for.es
out of Upper Silesia.
RISING OF THE POLES
CONDEMNED BY ALLIES
Hy the A eem tated Prete.
Omi.N. Upper Silesia, May 10.
The Interallied Commission has Issued
a proclamation to the people of Upper
Silesia, saying: "The allied Powers are
fully agreed In condemning the disturb
C'Oftlbived on Second Page
MORE Ihan 200.000 *?ll-ln rto families of
the Baiter gort the Want Art. page*
of The Hi-rgld. (let vour Want Art In early
?o-da1. puuiie CI.' '*r a 1000. -Adv.
KNOX RESOLUTION
UP SOON IN HOUSE
Reichstag's Surrender Ends
Temporary Ban on Passing
Joint Peace Measure.
WASHINGTON IS PLEASED
Senators Glad Over News and
Hope Berlin Is Sincere in
Yielding at Last. .
bprcia! Despatch to Tim New Yoix Hbrai d.
\>w York Herald Bureau,
Washington, I). ( May 10.
Germany's acceptance of the allied
ultimatum probably will result In
speedy pasaago of the Knox peace
resolution which Is now pending lie
fore tho House Committee on Foreign
Affairs after having been passed by
the Senate. Final action on the reso
utlon has been delayed because Presi
dent Harding believed its enactment
at this time might embarrass the
Allies by encouraging Germany to
continue her stubborn attitude.
It was authoritatively stated at the
White House no later than this after
noon that a settlement of the repara
tions controversy was momentarily
expected and that It would be prefer
able to postpone passage of the Knox
reaj utlon until after that time.
There was an undisguised feeling
of deep satisfaction in Administration
circles to-night over the action of the
German Reichstag. Its vote In favor
of accepting the allied demands was
leported in prene despatches received
after the State Department had closed
for the night and It could not be
learned whether any official word had
been received from American Commis
sioner Dresel at Berlin, The news
everywhere was given full credence,
however, for President Harding and
Secretary of State Hughes have ex
pected no other result.
Senators were much pleased at the re
ports, but several questioned whether
Germany really intended to pay In tho
end.
Senator Lodge r.Masa), chairman of
the Foreign Relations Committee, ex
pressed himself as Intensely satisfied
when he learned to-night of the action
of the German Reichstag. While he did
not comment upon the effect It might
have upon our foreign policy he said:
"It Is good news. Tt will be a very
Important step in settling the affairs
of tho world."
Senator Wadsworth (N. T.): "That is
mighty Important and It is not surpris
ing to me. but I le^irn the fact with re
lief nevertheless. It seems to me that
the Allies have been right In their po
sition from the very beginning, and that
this ?>>vernment In the notea sent by
Secretary of State Hughes on the sub
ject held right in declining to Intervene
In Germant '? behalf and in enforcing
the allied view-point"
Senator Moses (N.H.): "f sincerely
hope this is a bona fide acceptance on
Germany's part and that the notion of
the Reichstag will be followed by pay
ment In terms agreed upon In the ulti
matum. Taking the news at Its face
value, I regard It m highly Important to
the world and Incidentally Important In
simplifying to a large degree the poten
tial difficulties of this Government over
its foreign policy."
Senator Borah (Idaho): "1 am very
much pleased at thla Indication of a com
plete settlement of reparations, and par
ticularly pleased because France will not
take posaession of the *'uhr district. I
think this step would have been the be
ginning of almost universal disaster In
1 Europe."
HARTSHORNi:. FAl.r.A A CO., Members v? <
York Stock Kit his}-'*. 71 Rrnatiway -Adv
Reichstag Surrenders to
Ultimatum by a Vote of
221 to 175 on Advice of
New Chancellor.
ENDS WILD STRUGGLE
Dr. Wirth for Two Nights
and Days Had Worked to
Crystallize Sentiment
for the Inevitable.
FRANTIC TO SAVE RUHR
Disarmament, Trial of War
Criminals and Other Neg
lected Versailles Treaty
Items to Be Fulfilled.
Bu the Associated. Press.
Berlin, May 10.?Germany has ?c
repted the allied ultimatum. The
Reichstag to-night by a vote of 221
to 175 yielded to the final demands of
the allied Powers, and in so doing
agreed to fulfil the terms of the
Treaty of Versailles "to the capacity"
of the nation to do so.
The Ministry received the votes Of
the Majority Socialists. Clericals, In
dependent Socialists and a few scat
tering Democratic votes. The Na
tionalists, German People's party.
Communists and Bavarian People's
party, which nominally votes with the
Wirth Clericals, opposed acceptance.
The debate on the issue of accept
ing or rejecting the ultimatum con
sumed three hours, the represents
tlves of eight parties participating.
There were no demonstrations. Not
one of the retiring Ministers was in
evidence. The only novelty was the
reappearance of Majority Socialists in
the Ministry.
| Dr. Wirth, the Centrist leader,
finally succeeded in forming a coall
: tlon Cabinet, composed of Centrists,
| Majority Socialists and Democrats.
which, confronted by grave necessity,
j speedily decided that acceptance of
the ultimatum was the only course.
In making this announcement to
the Reichstag the new Chancellor
asked for an immediate decision by
that body, and in the voting which
followed the Government was sus
tained.
The allied ultimatum required a
definite reply, based on "yes" or "no."
No conditional reply would be enter
tained, and the ultimatum was formu
lated to expire ou the night of
May 12.
Dlurmanifnl Provided For.
The total sum which Germany I"
"ailed upon to pay is ?6,750.000,000
; (135,000,000,000 marks gold, or $33.
750,000,000). Disarmament must he
carried out by Germany In accord
ance with the provisions of the treaty,
and the trial of war criminals must
be put Into effect. Numerous other
"Important terms. In which Germany
has been In default, will he enforced.
Including the payment of 1,000,000,000
marks within twenty-flve days and
the disbanding of civilian seml-mlll
tary forces In Bavaria and East
Prussia.
| Non-compliance with the allied
; ultimatum would have subjected Ger
many to the occupation by the Allies
j of the Ruhr Valley and whatever
! other military and naval measures
| were deemed advisable.
1 The new Cabinet Is generally re
garded as a makeshift largely unrep
resentative, hut good enough to ac
cept the Entente ultimatum, and thr.s
avoid a French advance Into the
Ruhr.
While the Cabinet obtained a com
fortable majority In the Reichstag 1?
has the undivided support of only the
Majority Socialists and Clericals. The
members of the other parties. Ht is
declared, have given It support n<
a makeshift, and are not pledged to
'give It parliamentary support.
A leading Democratic member of
the Reichstag said to-day:
"The Cabinet cannot last, as it Is
not on a broad enough basis to carry
out the myriad of financial and eco
nomic problems Involved in German
acceptance of the reparations settle
ment. We Democrats have loaned
Sehlffer and Gessler to the Cabins
reserving to ourselves the right to
withdraw them Inter unless the <'ab -
net Is amplified to Include the tier
man People's party.
Chancellor I* In IHafavor.
Dr. Wirth, the Chancellor, is ua/a
? vorably regarded by the Industrialist*
and banking Interests, because he is
; closely associated politically with
Mathlas Krzberger his predecessor, a a
Finance Minister, who advocated a
raid on capitaf rather than Indirect
taxes, as h means of meeting Ger
many's pressing financial needs.
The conservative elements ?" the

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