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The Washington times. [volume] (Washington [D.C.]) 1902-1939, February 27, 1920, FINAL EDITION, Image 1

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H ?k Iffitoshitifiion Warn |FiS|g
ni'mber 11,454. ^ira^qrars:?:?:rfc" Washington. Friday evening, February 27. 1920. price two cent^
WASHINGTON BANKS DEFRAUDED
BY "MASTER MIND" OF $167,000
Today
Defense.
What War Gave France.
Do You Notice Shacklei?
Expect No Gratitude.
i Bj AKTUUB BRISBANE.
Uwytn, trying to keep Sena
toe Newberry'* friend* fiym Jail,
d? not appear to btvi complete
confldanca In Una cause they are
defending. Inatead of proving that
the Senatorahip waa not bought
they are concentrating attention
on the fact that Henry Ford'a son
did not go to France Juat what
that haa to do with the buying of ?
Senator*hip ia not clear.
Edael Ford attended to the Gaw
ernment'a moat important buaineaa
when he managed hie father*!
gigantic factortea to help the army
and nary, he and hia father ac
cepting not a penny of profit. It
would have been a crime if Ford'a
?on had ^relinquished that work.
And it ia not neceaaary to Bay that,
Hfcft many other aona of rich men,
he might eaaily have worn a pretty
uniform and "faced the front" a
long, comfortable distance from
the front.
The attack on Ford ia enlighten
ing. When an innocent man ia ac
cused of felony, he does not usu
ally try to escape by telling the
jurors that somebody else did not
go to war.
What France got from the war,
in which she bore the brunt, is put
?imply by Caillaux, the French
man accuaed of treason. Traitor
or not, he expresses clearly the
hard situation as regards France.
"War ia waged with men, coal
and ateel." France supplied her
own mens the war commodity that
can't be bought or paid for. fche
bought her coal and steel from
England and America, and comes
out of the war with her men killed
and the survivors loaded with a
debt of forty to fifty billions to
England and America alone.
Once a most prosperous creditor
nation, thanks to the induatry o
and danfir are past.
Senator Harding, of Ohio, one of
many that hope to be President,
gays industry must be "un
ahackled." Does that mean that
all kinds of business should be
allowed to go ahead and charge
all they can, unrestricted?
The general public has not
noticed many shackles on indua
try, or at least on prices. The
sugar Industry, for Instance, has
raised ttbe price from five cents
to twenty-four cents a pound, an
Increase of about four hundred
per cent, and you are told that the
price won't go down. No shack
ling there.
It la Interesting to see Presiden
tial candidates running on the
theory that organized labor ought
to be suppressed and profiteering
have full swing.
When you help another expect
no gratitude, and your expecta
tion will be fulfilled. This coun
try did not start the war. was
not responsible for any part of it
When this country took part it
worked rapidly. It sent men
across three thousand miles 01
ocean more rapidly than England
sent them across twenty-five miles
of channel when Belgium was
first invaded.
America is *ow dejwribed
among the allies as the last to
enter the war, and the first to
abandon her crippled partners.
The Tampa Times says Amer
ica should be good natured, keep
calm and "treat Europe as a
nerve-wrecked invalid.
What would happen if the nerve
wrecked invalid should pull itself
together and decide that the
United States must become pay
master for Europe, league or no
I-eague? It is fortunate for the
United States that it knew enough
not to allow itself to be tied up,
Houdini fashion, with that bundle
of ropes called the league of
Nations.
A little while ago cotton selling
for eight or nine cents a pound
was piling up in warehouses for
lack of purcnasera. Hearst, to
relieve congestion and help the
South, started a movement urging
rititens to buy and keep cotton?
the "buy-a-bale" movement.
Now cotton sells at forty centa
a pound, and Sully, the great cot
ton gambler, predicts cotton at a
dollar a pound. He says the
' South cannot possibly supply the
demand, and he ia right, probably.
Signing of Decree Dissolving Combine of Big Packers Here Today
District Attorney John E. Laskey, affixing signature to decree f meat of Justice; Maurice Splain, United States marshal for the Dis
of dissolution. Standing left to right:. Isiddr J. Kresel, Joseph trict, and A. Mitchell Palmer, Attorney General of the Ualted
Spainsky and Herman Galloway, attorneys representing the Depart* I State*. Pkoto br cwi Thoo?r. staff Photocrapkar.
ONIONS PUN MI
FIGHT ON RAIL BILL
. .
Glen Plumb Calls Measure Un
constitutional on Three
Grounds.
PALMER TELLS WILSON
RAILROAD BILL IS O.K.
* T " ? ' ' ?
Attorn*? Oufnil Palmer sees
H coMtltattonal fbjcttlo* t* ??
p royal by tkf I'mldrit of the
railway kill, kr notified Wllup, la
retnnlasr the measure ?? the
White House today.
The railroad unions and the farm
organisations which have conn on
record against the Cummins-Each
bill are planning to attack the con
stitutionality of the Cummlns-Esch
bill by court action In eveht the
President signs the measures, it was
earned today.
Proceedings seeking to enjoin the
Government from turning back the
railroads to private ownership March
I may be filed.
At the White House It was learned
that Qlen lv Plumb, attorney for the
railroad brotherhoods, had filed a
brief with the President attacking
the constitutionality of the bill.
"The measure is subject to consti
tutional attack on three (rounds,"
Plumb said today.
"First, It places an Invidious class
distinction on railroad labor by en
tabllnhlng a hoard to fix Its price,"
xald Plumb. "I.abnr in all other es
sential Industries Is left free to fix It*
own price.
"Secondly, by guaranteeing Invea
tors a minimum return of 6 per cent
It makes holders of railroad securi
ties a distinctive privlli-ged c'aas. prIv
iiyt them a flrfct lien on the prosperity
on the country at the expense of all
other cltlxens. Inventors and pro
ducers.
"nder the hill the people guarantee
all losses of operation suffered by
the railroad companies without any
voice in their management or protec
tion against exploitation of the prop
erties by the directors."
Railroad union leaders who have
been working to prevent a nation
wide strike express alarm at the out
look. I
Packers Dissolved By
final Decree Issued in
0. C. Supreme Court
Final decree was entered today in the Supreme Court of
tlie District of Polumbia dissolving the unrelated industries
of the large packers. The decree was in accordance with an
agreement.reached between Attorney General Palmer and
the "Big Five."
Palmer Enters Decree.
Attorney General Palmir entered
the decree before Chief Justice Mc
Coy.
The pact between Attorney General
Pafmer and the packer*, which !?
bound by the decree entered today,
is In lieu of the prosecution of the
packers planned by the Department
of Justice under the Sherman anti
trust law. t
Will Heater* Freedom.
"The decree which the Department
of Justice has brought about by
urgent Insistence Is designed to re
store freedom of competition and In
crease the opportunities for Individual
Initiative in business which must In
time bear good fruit for the public
welfare," said Attorney General
Palmer.
"Those great aggregations of capi
tal which have come to be known aa
the 'Pig Five' have been able to domi
nate so many lines of trade that their
continued and unrestrained growth
constituted a real menace not only to
American business, but to the Ameri
can consuming public as well.
"Under the decree entered today
the chief packing companies, their
subsidiaries, and principal stockhold
ers are compelled to sell preferably
to live atock prodocera and the pub
lie all their holdings In public stock
yards; all their Interest In stock yard
railroads and terminals; all their In
terest In market newspapers; all
their Interest In storage warehouses,
except that which la necessary for
their own meat producta.
?tarred From Retail Trade.
"They are barred forever from the
retail meat business and from deal
ing In 'unrelated line*,' Including
wholesale groceries.
"They are require* to submit per
petually to the court'* Injunction for
bidding all the defendants from di
rectly or Indirectly maintaining any
combination or conspiracy with them
selves or any other parson or persona, J
or monopolising or attempting to
monopolise any food product la Lha
* i
United States, or Indulge In mar un
fair or unlawful practice. i
"In brief, the decree remove* the
menace of control of unrelated In
dustries by the 'Big Five' and confine*
their activities In future to the busi
ness of distributing tneat and It* by
product! under an Injunction which
restrains them from unfair and un
lawful practice*."
Kxplaaatary H?t? mm at.
At the request of the attorneys
present represesentlng the defend
ants, M. W. Borders made the follow*
Ins; statement:
"These defendants have consented
to this decree and to give up certain
businesses, net because of guilt, for
they have not violated any law; but
that the American people may be as
sured that there Is not the remotest
possibility of a food monopoly by the
packers: that the constant criticism
and agitation leveled at this vital In
dustry, which Is seVlously Injuring
not only it. but the people generally,
may cease; that a better understand
ing and feellny between this Industry
and the public may be re-established;
and that conditions In this uncertain
and dangerous period of reconstruc
tion may be stabilised and the effi
ciency and benefits of this great In
dustry?dealing as it does In a prime
necessity of life, a highly perishable
product?may be preserved.
"In dealing with this great ques
tion. so Intimately connected with the
wrifare of alt the people, it must be
borna In mind that the packer occu
pies a most delicate and difficult po
sition?-to which there Is nothing
analagoua In American buslnem. He
Is between mlllons of producers on
one side, demanding a high prlca for
the live meat animal, anjl one hun
dred million consumers on the other
side, demanding cheap meat: and
there cannot be oheap meat on the
tabla of the consumer when the pack
(Contlnnad on Pac* 2, Column
i
AVERS U. S. MARINE
MUST BE FAVORED
Failure to Give Preference In
New Trade Routes Means
Ruin, Says Ferguson.
NEWPORT NTffWS, Va., Feb. J7.?
Preferential treatment for American
ships In the opening up of new trade
routes and to meet thp keen competi
tion that la sure to come muat be
Riven by the Government's proposed
merchant marine poller If a dis
astrous stagnation of over-produotlon
is to be avoided, Homer It. Ferguson,
president of the Chamber of the
Commerce of the United States, de
clared In an address here last night.
"Prices are bound to come down as
soon ss the other fellow gets to
work," said Mr. Ferguson, "and we
cannot built a tariff wall high enough
to keep his goods out."
Ferguson reiterated his opposition
to the sale of the former German
ships before adoption of a permanent
merohant marine poller. Until that
poller was determined, he nald. the
purchase of these would be a pure
gamble, as the ships had no stable
value at present. He said that unlets
the Oaverament's poller rrfade It pos
sible for purchase of our ships to
operate them profltablr under the
American flag they must Inevltablr
pass to foreign ownership.
It waa Impossible for Americans to
biilld or operate ships as cheaply aa
the British, he said, nnd unless we
protect our trade b> preferential
treatment of our shipping Interests
our merchant marine would become
Just what It waa before t^e war.
SAVE CREW OF TWENTY
FROM WRECKED STEAMER
BALTIMORE. Feb. 27.?Advices re
ceived here today report the rescue
and landing at Norfolk of twenty
members of the crew of the American
steamship Tallac. Captain Johnson,
bound from Panama to Baltimote
with a cargo of manganese ore.
| The vessel went ashore Wednesday
flight eighteen miles south of Cape
Henry and from that tlma until they
were rearued the crew spent most .if
the time on the exposed decks of the
helpless ship.
Reports ear the Tallac la pounJing
to pieces, and will prove a LoLai loaa.
i
Allied Note Will Not Be Made
Public Here, State De
partment Says.
| The reply of the French and
British premiers to President Wil
son's latest Adriatic note has been
received here, it was announced to
day at the State Department.
The note will not be made public
here, although it may be published
in Europe.
President Gets Note.
The note has been sent to the Presi
dent. ft Is understood.
Great Britain will make -public a
considerable amount of correspond
ence with Italy as to the Adriatic
question. It was learned today. Thia
correspondence was not submitted to
the United States.
The Stat* Department announced
today that Oreat Britain had con
sented to the note of December 9 only
after It had been agreed that Italy
would have an opportunity to reply,
that it would not be considered an
ultimatum, and that it would not be
made public at that time.
Beneath the terrible Impact of tfep
exchange of notes between President
Wilson and the British and Preach
prtsflfM rfittiV* to the Adriatic con
troversy th* peace treaty situation
f (Continued on Pace 3, Column 1)
BRITAIN PROTESTS
SHIP LOSSES
LAD) TO U.S.
LONDON, Feb. 27,?The Brit
ish government was reported to
have teat ? note to Washington
regarding Imm sustained by
British shipping companies
through the delay of the L'llted
State* la releasing former Ger
ms steamships, such as the
I operator.
The reported note of Great
Britain to the United States haa
not arrived here, it waa official
ly stated today.
Such a not* ia expected, it waa
admitted. This Government ex
pects Great Britain to make
claims which will probably be
finally referred to the President.
The delay in turning the ships
over to Great Britain was
brought about by a controversy
between the Shipping Board and
Former Secretary of State Lana
ing. The Shipping Board desir
ed to hold the Teasels pending
?lettlemnt of a controrrsy aa to
Amrican oil tankers held by
Great Britain.
MEATLESS DAYS IN ITALY.
HOH& Keto. 27.?Tho wartime ?ya
tem of cards for bread, fats, and
*uaar and a system of meatlesa days
will be Inaugurated on Monday In
Italy. The btklaf of cakea baa beea
prohibited.
The Shipping Board can't sell the ships;
The court sealed the auctioneer's lips;
Now Britain will say
In picttffesqoe way:
1 fawncy there's been an eclipse."
In Berkeley, W. Va.. there U "a
red-headed girl with a hundred dollar
?mile."
In a day or two shell vet a cheek
from The Washington Tlmea to match
the smile.
The reason for the present smile la
contained In the fact of her harm*
been the author of the last line of
the above stansa, which was Lim
erick No. 19 of The Times contest.
Unfortunately It was too far away
to ret a Times staff photographer to
snap the hundred dollar smile.
But this Is the year when ladles
speak, matrimonially, politically an<l
why not autoblographlcallyr So here
Is hsr letter:
"To the Limerick Editor,
"The Washington Times.
"Washington. D. C.
"Dear Sir?Tour unusual message
this noon was duly ezoltlng. and a
most delightful surprise; and If you
can Imagine a red-headed "girl" with
a hundred dollar smile I'm very sure
that you have the most natural pic
ture that I can produce at this time.
ul Blaae Aareatera.
"It can't be blamed on my ances
tors because they did big things for
email compensations. My grandfather,
Thomas Buchanan, won highest hon
ors from the Belfast College, Ireland,
and his diploma was presented to him
In a sliver tube (he was also the
ancle of Thomas Buchanan Read, hie
name-sake), he wrote many hymns
and poems, in fact, his last letter to
his children wss written In verse.
"My father. Prof. John Buchanan,
at the age of eighty-two years, re
sponded to the call from the State for
teachera- -when our boys were called
away?and la still teaching. I know
he'll smile, too. when I tell him that
I won $101 for a single line. Why,
that's nearly all that a teacher gets
for a while month!
"A good many of my war lyrics
were printed in the Baltimore Amer
ican last wiater, and when at last I
was paid for two by a feature mag
aslns, I almost doubted at flrst If It
wsre real, the bank honored It. so I
presume It was o. k
"And now that I have actually won
a 'best last line' among all the
thousande of contestants, and at the
hands of all those wonderful judges,
well, I'm Just going to try for more
worlds to oonquer, because I would
rather write lyrics and short stories
then do snythlng ?lse. I entered a
song in Mr. Hearers national aong
contest In the New Tork American
last rear?but I didn't win.
But today?well, Just think of
winning one hundred dotlsrs for a
single, simple line- It would make
anyone smile, wouldn't It?
"(My husbsnd raid: 'I told you so!'
and now he think* It's all his fault.)
"Thanking you for this plessure, I
am, Very gratefully vours.
"ANITA BUCHANAN flPKBR.
"Berkeley KprLoga. W. Va."
"P. 8.?Regret that I cannot comply
with request for picture.?A. B. S."
Ckdcc ?> All JiIcm.
Mrs. Speer*s last line wu the first
choice of all the Judges, one of two
or three times this has hapened.
The flood of anawera to the limerick,
which was the second on the ship
sale, Indicated that the readers of
The Times are much intereated in the
subject of America's merchant ma
rine. The Times and Mr. Hearst came
In for many pleasant mentions, while
"blawsted" was the mildest term as
cribed to John Bull concerning them.
Nora L. Michael, 1018 Jackson
street northeast, quoted the florM
gentleman across the pond as saying:
"Hit's 'eads up when Uncle Sam
flips."
L.loyd T. Everett, Ballston. Va.,
quoted "Bah, Jove, I was spoofed on
me tips."
That Adklns family, which con
tributed the first prise winner, U ab
solutely Irrepressible, and is always
hovering around near the head of the
list. One of the near-priae winners
was Mrs. Bdith M. Adklns, wife of
William 8., whose line, "The bally old
bean sometimes slips,'* was found
among the last five on Which the
Judges gave the final word.
And V. W. Cordell, 107 Underwood
avenue, Chevy Chase, Md.. gave th?
ubicund gentleman the consolation,
They'll need them to come for their
nips."
The Limerick Editor is only human,
and sometimes he makea a slip, and it
Is also possible that the consensus of
opinion of three Judges is not alwaya
what one of them would have chosen,
or what some llmerieker or other
reader of The Times would select,
wir Net Am AMbir
Bo when there's a perfect chance
for an alibi, why not use oneT
A dozen persons have sent In kicks
on the honorable mention given Ruth
t>. Toung, 411 Southern building, for
her last line to Ltmertek No. 12, on
the barber, which was published:
"How lucky the dog can shed." There
was either a typewriter slip or a
typographical error. As sent In the
line read: "How lucky the dog that
can shed " There was a similar slip
in one of the published lines for
Limerick No. 17. And he Is sitting on
tscks.
The Limerick Editor has been sorry
a dor.cn times thst It wss necessary
to maka a standard of exart meter;
but It having been made, he will do
hla beat to sea that It Is atrlctly ob
served.
He has a drawer full of clever let
ters. kicks and otherwise, which may
help out In maklnrr a limerick story
some day when he doesn't get asslst
anee like the tetter above from the
"refi-headed girl with the hundred
dollar smile."
I.laterlrk No, M mm4 rales sf tW
Several Banks Here Victims of
Loans on Stolen
Securities.
SULLIVAN & CO. AGENTS
Manager Drain Acted in Good
Faith in Introducing Client
"George Wall."
' "Nicky" Arnstein, alleged to hare
been the master mind In the gigantic
plot to steal $3,000,000 worth of se
curities from the financial district
brokers of New York, obtained mora
.than $167,000 in cash from several
Washington banks here the latter
part of last Tear on a loan he had
obtained on stolen securities, accord
ing to Washington police.
The loss to the Washington finan
cial institutions resulted in the
Washington police making just as
eager a search for Ernstein as is now
under way by the New York author*.
w?ll as the police of the en
tire world who halve been urged to
capture Arnstein in connection with
the conspiracy to steal stocks and
other securities, including Liberty
Bonds, in New York.
Did Basiaess Here.
Arnstein did business in Washing
ton through the Arm of David W. Sul
livan & Co., president of which was
David W. Sullivan, formerly saloon
keeper at Twelfth and E streets
northwest, who branched out into the
brokerage business after the Capital
went dry.
According to Inspector Clifford I*
Grant, chief of detectives, and John
J. Maynes, Inspector for the America*-'
Surety Company, Arnstein. under the
name of George Wall, came to the
Capital with many stolen securities,
and was Introduced at several banks
by Michael P. Drain, local manager
for Sullivan at that time, and who, the
police said, acted In good faith In en
deavoring to consummate the sale of
the securities, net knowing they had
been stolen.
Ut( Dinerataf FfC
It was not until January, this year,
several months after the stocks had
been negotiated in the Capital, that
the Washington bank victims of Aren
ateln and his associates discovered
the securities bad been stolen, and
that they were due to lose loana of
9147,000. The total value of the stock
negotiated here was approximately
$247,000.
"Arnstein came to Washington, and,
posing as George Wall," declared In
spector Clifford L Grant, chief of
detectives, "placed stolen? stocks,
valued at $48,000, with DraJn. who
was the local manager at that time
for 8ulllvaa 4k Co, the main office of
the brokerage firm being at 10 Wall
street. New York.
"After negotiating this stock, Arn
stein opened up more accounts with
other local members of the firm. The
accounts were opened to the credit of
"George Wall, C. .F. Enright and K. B.
Steele," the accounts being, however,
only those of Arnstein."
Drain KiwwtfC
Polioe Investigation has revealed
tbst Arnstein was more than a close
acquslntance of David W. Sullivan,
and that he had allowed the New
Tork office of the brokerage Arm to
bring the stocks to the Capital to be
unloaded here, using Drain an a goat.
"Drain is clesn." said John J.
Maynes, inspector for the American
Surety Company; "his character Is
Irreproachable."
It was after Drain had arranged for
the negotiation of 145,000 worth of
the stolen stock* that Arnstein is sl
leged to have opened up other ac
count! with Sullivan & Co.. which re
sulted in the unloading of the entire
1247.000 worth of securities In finan
cial Institutions here.
Stolen Storks t'aelalsiee.
"While Arnstein. known here under
the nsme of Wall, opened the first ae
count here with the stolen bonds,"
said Inspector Grant, "he also nsgotl
ated the other stolen securities un
der the nsmes of C. F. Rmrlght and
E. R. Steele. No such persons aa the
latter have been found, and they never
have made claim for the stocks they
borrowed money on. and which later
have been discovered to have been
stolen."
When Drain discovered that the
firm by which he wss employed had
been handling stolen securities, he
Immedlstsly quit his Job. Police offl
clsla lay he Is s man of Irreproach
sble character, snd st the time he
hsndled the atolen securities hsd no
knowledge that they had heen stolen
(Continued en Page fluln^a >4

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