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The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, November 23, 1918, Image 1

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Inadequate Compensation Given As Reason For
The Stepping Down of Secretary of the Treasury
President Accepts Resignation,
Expressing Regret at Stj-/p
Will Leave Treasury on Appointment of Successor, an/$ftail
road Administration on January 1, to Return to Pr&.te
Life After Six Years in Office *T
Washington, November 22.—William Gibbs McAdoo, Secretary of the Treasury, director
general of railroads and often discussed as one of the presidential possibilities of 1920, has
resigned his offices to return to private business.
President Wilson has accepted his resignation. Mr. McAdoo will give up the treasury port
folio as soon as a successor has been selected. He wished to lay down his work as director
general of railroads by January 1, but will remain if the President has not then chosen a suc
Upon the new Secretary of the Treasury, whoever he may be, will devolve the talk of financing the nation
through the transition period of war to peace, which probably will include at least two more Liberty Loans and
possibly a further revision of the system of war taxation.
Letters between President Wilson and Mr. McAdoo, made public today with the announcement of the resigna
tion, give Mr. McAdoo’s reasons for leaving the cabinet solely as a necessity for replenishing his personal for
tune and express the President’s deep regret at losing his son-in-law from his official family.
The following letters were made public with the announcement:
Mr. McAdoo’s letter of resignu
tion, dated November 14, follows:
‘‘Dear Mr. President: Now that
an armistice has been signed and
peace is assured, 1 feel at liberty
to advise you of my desire to re
turn as soon as possible to private
“I have been conscious for some
time of the necessity for this step,
but, of course, I could not consider
It while the country was at war.
“For almost six years I have
worked incessantly under the pres
sure of great responsibilities. Their i
-— ions have drawn heavily on my
igth. The Inadequate compensa
allowed by law to cabinet offl
(as you knW t receive no
Sensation as director general of
oads) and the ver* bprdensome
of living in WfbttliiKtou so
ces that I am obliged to reckon
the facts of the situation,
do not wish to convey the im
«ion that there is any actual
ilrfient of my health, because
is not the fact. As a result
jug overwork I need a reason
able period of genuine rest to re
plenish my energy. Bn? more than
this 1 must, for the sake of my
family, get back to private life, to
retrieve my personal fortune.
“I cannot secure the required rest
nor the opportunity to look after
my long neglected private affairs
unless I am relieved of my present
“I am anxious to have my retire
ment effected with the least possible
inconvenience to yourself and to the
public service, but it would, i think,
be wise to accept my resignation
now, as Secretary of the Treasury,
to become effective upon the ap
pointment and qualification of my
successor so that he may have the
opportunity and advantage of par- >
ticlpating promptly In the formula
tion bf the policies that should
Rovern the future work of the
treasury. I would sugRest that my
resignation as director general of
the railroads become effective Jan
uary 1, 1919, or upon the appoint
ment of my successor.
“I hope you will understand, my
dear Mr. President, that I will per
mit nothing but the most imperious
demands to force my withdrawal
from public life. Always I shall
cherish as the greatest honor of my
career the opportunity you have so
generously given me to serve the
country under your leadership in
these epochal times.
“Affectionately yours,
“YV. G. M’ADOO.”
The President’s letttfr of ac
ceptance, dated November 21, fol
“My Dear Mr. Secretary* I was
not unprepared for your letter of
the wti»t because you Ua»,,i more
than once, of course, discussed with
me the circumstances 'crhich have
long made it a serious personal sac
rifice for you to remain in office.
I knew that only your high and ex
acting sense of duty had kept you
here until the immediate tasks of
the war should be over. But I am
none the less distressed. 1 shall not
allow our intimate personal rela
tions to deprive me of the pleasure
of saying that in my Judgment the
country has never had an abler, a
more resourceful and yet prudent,
a more uniformly efficient Secre
tary of the Treasury; and I say
this remembering all the able, de
voted and desirous men who pre
ceded you. 1 have kept your letter
a number of days, in order to sug
gest, if 1 could, some other solution
of your difficulty than the one you
have now felt obliged to resort to.
Bat 1 have not been able to think of
any. I cannot ask you to make
further sacrifices, serious as the
loss of the government will be in
your retirement. I accept your res
ignation. therefore, to take effect
upon the appointment of a succes
•or, betausc In justice to you I
‘“I also for the some reasftn ac
cept your rcsignutkon as director
geueral of railroad* to take effect,
as you t*ugge»t, on the 1st of Jan
uary, next, or when your successor
Is appointed. The whole world ad
mires, I am sure, as 1 do, the skill
and executive capacity with which
you handled the great and complex
problem of the unified administra
tion of the hallways under the
stress of war uses, and will regret,
as 1 do, to see you leave that post
just as the crest of its difficulty
is passed.
"For the distinguished, disinter
ested and altogether admirable
service you have rendered the coun
try in both posts, and especially
for the way in which you have
guided the treasury through all the
perplexities and problems of transi
tional financial conditions and of
the ttnamidug <*f a nr** Which has
been vmfioiii precedes.! nilke in
kind and In scope, I (hash ^you
with a Sense of gratitude that
comes from the very bottom of my
“Gratefully and affectionately
It is entirely probable that the Presi
dent may fill separately the offices of
Secretary of the Treasury and director
general of railroads. There was noth
ing official tonight on which to base a
statement of who might be under con
sideration for Secretary of the Treasury.
On previous occasions when a successor
to Mr. McAdoo was being discussed.
John Skelton Williams, Comptroller of
the Currency and W. P. G. Harding, gov
ernor of the federal reserve board, have
most generally been mentioned. Paul
Warburg, formerly a member of the re
serve board, and a prominent New York
banker, and Russell C. Leffingwell, As
sistant Secretaryof the Treasury, also are
reckoned among the possibilities.
President Wilson is not required to
choose the new director general of rail
(Continued on Page Two.)
Four Democrats and Five
Republicans on Elections
Committee Favor Mo
tion for Dismissal
Washington. November 22.
The Senate privileges and elec
tions committee today voted
9 to 2 to dismiss proceedings
1 brought against Senator La
I Follette of Wisconsin, for an
| alleged disloyal speech at St.
; Paul more than a year ago.
The majority recommendation,
together with a minority re
port, will be presented to the
Senate when it reconvenes De
cember 2, with possibility of a
contest on adoption of the ma
jority report.
Four democratis and five republican
committeemen voted to sustain a mo
tion filed by Senator LaFollette’s at
torney for dismissal of the proceedings
which were instituted by the Minne
sota public safety commission. Chair
man Pomerene 'and Senator Walsh of
Montana, democrats, voted in opposi
tion. and the chairman said he would
offer a minority report. Senator Dil
lingham of Vermont, republican, will
present the majority view to the Sen
Although today's committee action,
which followed many meetings dur
ing the past year, was taken technical
ly on the dismissal motion, detailed
statements on the facte, evidence, and
legal points involved, are expected to be
given in the majority and minority re
Some committee members said today
that however much Senator LaFol
lettea’ speech might be deplored there
was no basis for his expulsion.
Other committeemen said that there
has been long delay in the investiga
tion without action while the United
States was at war, and that With peace
further proceedfX •
Starting From Sparks, Fire
Destroys Thousands of
Gallons of Gasoline
on Ship
Baltimore, Md., November 22.—A fire,
which threatened at one time to wreck
the entire Canton water front district
of this city, broke out today at the oil
loading: docks of the Standard Oil com
pany, destroying: the company’s piers,
badly damaging the oil tanker F. Q.
Barstow, loaded with 75,000 barrels of
gasoline, and destroying three pile
driving machines of the Raymond Con
crete and Piledriving company of New
The total loss, it is estimated, will
! reach $1,000,000.
The blaze started from sparks from
one of the piledrivers, which ignited
surface oil on the water alongside the
tanker. The flames quickly traveled to
an old dock of the Standard Oil com
pany and spread to a warehouse and
the tanker. Fifty men working on the
deck escaped, as four barges loaded
with lead casks of gasoline burst into
flames. A'number of these were as
signed to the American forces m
Thirty members of the tanker’s crew
saved themselves by leaping into the!
There were numerous explosions of
casks of gasoline, but the tire on the
tanker was gotten under control before
it got to the holds of the vessel.
A number of six-inch shells aboard
the vessel were removed to safety be
fore the flames reached them.
Little Rock, Ark., November 32.
For a period ot two days, the dates
to be announced later, all .tore.
orlllBB food to Arkansan City, Ark.,
will be dosed except that of Joe
Kons. a Chinese. It was stated to
day by Haap Williams, state fend
administrator. All exeept Kosg have
been convicted of profiteering. The
stores to be closed include those of
the mayor and the county food ad.
s»Inistrntoiv~Arkaaaps City has a
populating of about MOO.
Alleged Attempts to Manu
facture Evidence Against
Mrs. Rena Herman
Mooney Are Cited
San Francisco, November 22.—Reve
lations of alleged crookedness in the
prosecution of many cases, criminal and
civil, in San Francisco courts, includ
ing a charge that attempts were made
to manufacture evidence against Mrs.
Rena Herman Mooney, were contained
in a report made public '■■ere today.
The report as prinfSd here bore
the signature of John B. Densmore, di
rector of employment, and was ad
dressed to William B. Wilson, Secretary
of Labor at Washington. The report
was dated November 1. Mr. Densmore
tvould not deny he maje the report, but
intimated that it must come through
official sources at Washington. Dens
more was sent to Ban Francisco some
time ago by Secretary Wilson to inves
tigate certain governmental affairs.
Long atenographic reports of all al
leged conversations obtained by dicta
phones dealt with alleged acts tend
ing to involve a former justice of the
California supreme court, a member of
the prosecutor's office and a number
of persons who have figured in the cases
of national interest, including the fa
mous San Francisco graft cases. in
one instance there is mentioned pay
ment of *410,600, with allegations that
this amount was passed.
Mrs. Mooney, the object of the al
leged attack to manufacture certain evi
dence, is the wife of Thomas J. Mooney
awaiting sentence of death for murder
in connection with the preparedness day
bomb explosion here July 22, ion
She was Indicated with her husband
and three others upon 10 counts of
murder, covering the 10 deathe from
the explosiion. She was acquitted on
one count, four counts wer.e dismissed
and she now is on ball awaiting dispo- i
sition of the other chargee. :
Seattle, Wash., November 22.—James
Duncan, secretary of the Seattle Central I
Labor council, stated today he had writ- i
ten Samuel Gompers, president of the <
American Federation of Labor, asking t
him to take charge of the unton move- I
ment toward a nation-wide strike as a <
(CesOset* Pace Mae)
..,. - - > vmwem* *&•»:••:«-;«•:: *w • : , SSORfett sm&MM * :;'iSi
Son-in-law of President Wilson, who has resigned as Secretary of the
1 reasury and director general of railroads, because salary was too small.
With American Commander
at Her Side, Grand Duchess
Watches Americans March
Into Her Capital
Luxemburg, Thursday, No
vember 21.—(By the Asso
ciated Press.)—With General
Pershing, the American com
mander in chief at her side, the
youthful Grand Duchess of
Luxemburg, from the balcony
of her palace, watched trie
American troops march into
capital today.
Twenty-four hours before the Grand
Duchess had seen the long columns of
grayclad German soldiers depart for their
own country after the occupation of her
Duchy for more than four years.
The American army of occupation to
night controls every road, city and vil
lage in Luxemburg. The Belgians were
more demonstrative in *some cases upon
the arrival of allied forces, but it was
Impossible to doubt the sincerity of the
welcome given by the residents of Lux
l.KAllf 1LAT1UJ«
The Grand Duchess and the members
of her cabinet expressed gratification
that Americans had come to take the
place of those whom they had been
forced to tolerate for so raaify years.
Popular approval who expressed in the
treat demonstration when the people
sighted General Pershing* and again
when the dusty column of American sol
iiers mo red through the streets.
Prior to the entry of the troops, Oen
iral Pershing in a proclamation, assured
:he public that the American army would
•emHin only as long as was necessary, '
md while It was in Luxemburg would ;
londuet itself In conformity with the -
iivil law. The proclamation was dis- '
ributed among the troops as well as
imong the population.
The Grand Duchess had taken up her
emporary residence in the Grand Ducal y
i&tace in Luxemburg in order to be
resent when iter capital was occupied *
ly friendly forces. It was there that 1
Brigadier General Frank J. Parker was c
eeeived when he called to assure her ‘
if the attitude of the advancing forces. 1
The Grand Duchess is a slightly built, a
ittle woman, and attired in a simple 1
ilk dress, she appeared even younger
han her 23 years. She listened to Gen
ral Parker carefully, and assured him
he had no doubt of t)ie honest and
iclpful intentions of the Americans. She .
epeatedly expressed her gratitude. Aft
rward she received Lieutenant Colonel
lueekmeyer. Captain Bellihaft and Lieu
enant Seaton of General Parker’s stuff.
It was explained to the Grand Duchess
hat the greater part of the American
trees would march around the city,
nd that only a small part would enter,
he expressed her delight with sum
iary plans and said she would be very
lad to meet General Pershing.
General Pershing entered the city of
.uxemburg this afternoon ahead of his
roops. The American commander in
hief and his staff drove into the capi- 1
il in automobiles. The general was
rested by thousands of Cheering Lux
mbergers, and with the blowing of 1
((.'•■ilauetl am Page Two,)
MCE ns,
Ryan and Potter to Return
to Private Business—Suc
cessors Will Not Be
Named Immediately
Washington, November 22.
Resignation of .John D. Ryan,
second assistant secretary of
war and director of air service,
and of William C. Potter, his
chief assistant, was announced
today by Secretary Baker,
Both Mr. Ryan and Mr. Potter desire
to return to their private business ^s
quickly as possible, but Mr. Baker
said they had consented to remain at
their posts until the rush of aircraft
demobilization is over and later to give
the department the benefit of their
experience whenever necessary.
After the retirement of Mr. Ryan and
Mr. * Potter the offices they now hold
will not be filled immediately, if at
It appears unnecessary to officials
now that a new director general
should be named in Mr. Ryan’s place,
rhere is no longer a production prob
lem to be handled as the war is over,
and operation is naturally a military
function. It was said that pending re
organization of the army and the war
iepartments on a peace basis, recom
mendations for which will be laid be
fore Congress next month by Secretary
Baker, it is not possible to ^arrange fo**
he permanent aircraft establishment
}t the army.
Mr. Ryan, who was president of the
Vnaconda Copper company, was called
jpon by President Wilson to take
charge of aircraft production last May,
ifter charges of delay and inefficiency
n the programme had been aired in
he Senate. Mr. Ryan resigned hib
irivate connection to become chairman
>f the aircraft board and director of
production. Three months later lie
vas made second assistant secretary of
var and director of air service.
Mr. Potter, who is a banker, mining
mgineer, railroad man and former
reueral manager of the American
imeltihg company, was called to assist
li\ Ryan In the task of getting tho
ircraft production programme into
ull swing.
Wilson Unexpected Guest
Washington. .November 22—President
V’ilson appeared unexpectedly at an en
ertainrnent given at Central high school
ere tonight as a farewell to members
f the supply division of. the quarter
larter corps. .When during the enter
linment those present Joined in singing
popular patriotic song, the President
a Iked to the stage, took an American
nd a French soldier by the arm and
•d the singers in the chorus.
Summary of the News
L—Seeretary MeAdoo realgni.
PfrHhinK enters Luxembnrf at head
of forces.
Half billion cut from revenue bill.
Brewery probers still at work.
S—20 more U-boats handed over by
I— Casualty list.
1— Nesbitt elected chairman of state
\ executive committee.
Pevear’s arrest first wedge in flight
to secure car servlee.
b—Society news.
r—Gridiron championship of world
hangs on same today.
U—State to spend huge sums la build
Downward Revision as Pro
posed by Secretary Mc
Adoo Under Way by
Senate Committee
Washington, November 22.
Reductions aggregating $500,
000,000 in the yield from the
new war revenue bill were
made today by the Senate
finance committee in revising
the measure downward to the
$6,000,000,000 total for 1919,
proposed by Secretary Mc-J
Adoo. The decrease was con
fined principally lo the tobac
co, luxury, semiluxury and
other special and excise sched
Among the more important decisions
today were elimination of the luxury
schedule proposed in the House bill,
leaving 20 per cent on costly articles
of clothing and other merchandise and
estimated to raise $184,795,000; elimina
tion of the House tax of two cents a
gallon on gasoline, estimated to yield
$40,000,000; reduction from 10 to 5 per cent,
or about $200,000,000 in revenue, in rates
on many articles classed as semi
luxuries and a reduction of about one
half in the House rates on tobacco, a
out of about $54,000,000 in revenue.
• JjThe committee deferred decision on the
plan, suggested by Secretary McAdoo ami
specifically presented yesterday by
Chairman Simmons for incorporating
1 In the measure specific rates for 1920
I taxation by which the total revenue yield
would be limited to $4,000,000,000.
Republican members still vigorously
oppose legislation for 1920 and the'com
mlttee decided to pass that question ,
temporary. Tomorrow it will resume re- i
vision of the miscellaneous taxes with 1
a view to cutting off another $500,000,000 |
necessary to reduce the whole to six
billion dollars.
In cutting the excise, orw semiluxury,
schedules today, the committee reduced (
from 10 to 5 per cent the House rates
on the following articles; Piano play
ers. phonographs, photographic films,
candy, portable electric fans, thermos
bottles, slot machines and toilet soap and
powders. The chewing gum rate was
cut from 4 to 3 per cent; that on bunt
ing and bowie knives from 100 to 10
per cent: on firearms and ammunition,
from 25 to 10 per cent, and on sculpture,
paintings and statuary from 10 to 5 per
Ten per cent taxes imposed in the :
House bill on bathing suits and photo- ]
graphs or teproductions were entirely «
eliminated and that of 10 per cent on <
fur and wool articles made applicable to i
fur manufacturers only. c
hi the excise schedule no change was i
made in the 5 per cent sales tax on ,
automobiles, tires and. accessories, nor j
in the 10 per cent rate on sporting goods (
and liveries, tapestries, textiles and (
yachts and motor boats. ,
The 10 per cent sales tax on precious f
stones, jewelry and imitations, clocks,
watches, opera glasses and similar
articles was reduced to 5 per cent.
After tentatively deciding today upon j
reduction of the amusement admission g
taxes, the committee finally determined t
to leave them unchanged as already re- c
duced from the House figures. Tbe
principal rate for such admissions is 1 r
cent for each 5 cents paid. The 10 per r
cent tax on club dues also was left t;
unchanged. a
Marshall and Gerard
to Speak at Meetings
New York, Nov. 22.—Vice President
Marshall and James W. Gerard, former
ambassador to Germany, have accepted
invitations to speak at a series of ten
conventions to be held by state branches
of the league to enforce peace from
November 30 to December 12, according
to an announcement tonight by the
league. The purpose of the conventions
io to stimulate favorable sentiment for
a league of nations.
The itineraries of the two speakers
Mr. Gerard: November 30, Richmond,
Va.; Decembers, Raleigh,>N. C.: Deeem
Ivr 5, C olumbia, S. ; December 7.
Charleston, W. Va.
Mr. Marshall: December Des
Moines, Iowa; December i>. Omaha, Neb.;
December 7, Cheyenne, Wyo.: December
9, Salt l^ake City, Utah: December 11.
Reno, Nev.; December 12, San Francisco.
Conventions also will be held in North
Dakota and Minnesota early in Decem
ber, it was announced.
Cereals for Europe to
Leave Mobile Soon
Mobile. November 22.—it was learned
from a reliable source today that the
government will have a number of
steamers loading here at one time. Thour
sands of tons of cereals for shipment
to war devasted Europe will likely start
within the next week or ten days.
The export trade of Mobile has shown
an increase already and the big steamer
Ganges is now at the municipal docks
taking on general cargo for England.
The import trade into Mobile from
Cuba, Central America and South Amer
ica and the British West Indies and
from the islands to the south of Mobile
will begin to move in thirty days time
A line of steamers to bring fertilizer
to this country is one Of the new enter
priser forecast.
Additional Evidence From
Private Files Read Into
Record by Investigat
ing Committee
Washington, November 22.
Additional records from the
private files of the United
States Brewers’ association
showing methods adopted in
the organization’s efforts to
combat the prohibition move
ment, were read into the rec
ord of the Senate investigating
committee today by Maj. hi.
Lowry flumes, who is in charge
of the inquiry.
These records < 1 o11 with the organi
zation and financing of the National As
sociation of Commerce and Labor, dis
bursements to the Gerinan-American
alliance, the employment of special
writers for beer propaganda and a
suggestion to Hugh A. Fox, secretary
of the association, that the brewers
offer a prize for the best essay on the
solution of the “saloon problem," with
the co-operation of newspapers as a
medium of publicity. The Hearst pa
pers were suggested in this connection.
Other records included a suggestion,
Lhat efforts be made to induce Jeter C.
Pritchard, former federal judge of
Vshevllle, N. O., and a prohibition ad
vocate, to write a letter to a brewer
soliciting funds with a view to d Upred
ting him. Other documents included" .
etters purporting to show that a
T. Martin was employed to attend
t meeting of the Anti-Saloon league in
Ulantlc; City, N. J., in 1914, to report the
>roceedings to the brewers and that in
August of the same year she attended
i meeting of a Catholic prohibition so
ciety in Niagara Falls, was elected secr
etary and subsequently destroyed tbp
ecords of the session. She was on the
Association's pay roll at $30 a month,
Lccording to the records.
The committee heard only one witness
oday, but before adjournment to Pe
:ember II It decided to take up at that
ime a general inquiry Into German
propaganda. Alexander Konta of New
fork, who has been mentioned in con
tention with the German propaganda
novement, will be called to testify
trobably immediately after the inquiry
s resumed.
me name or the person suggesting
lie prize essay contest on the saloon
vas not given. He pointed out the ad
antage of working through the news*
>apei*8 in bringing the prize to the at
ention of the public instead of the as
loeiation taking it up direct. “If the
iearst newspapers, for example,'' the
uggestion read, “could be gotten to co
operate with tlie brewers for months
>efore the awards were made, they would
arry editorials and articles to stimulate
he interest. People would send in man
iscripts and the winning article W'ould
e widely read. On the other hand, if
he United States Brewers' association
ffered a prize through the convention,
he Associated Press would carry a
hort. -announcement of the fact.”
The brewers’ idea of the value of the
ublicity was set forth in another in
tanee, when suggestion was made for
he use of the American Press iso
lation's plate matter.
The Associated Press, the letter said,
eaches the public through press dis
atches, but the American Press asso
iation reaches the readers of the
mailer newspapers, in this comiec
on the l iter of< the suggestion called
ttention to the alleged use of the letter
ledium in the McKinley campaign of
B96, as follows: •
“One specific instance that I heard of
n the best of authority was that of
lark Hanna’s using this means to
lake McKinley the republican nominee
>ng before McKinley’s nomination in
89«). A certain writer was employed
y Hanna to write democratic editorials
>r the democratic newspapers in the
Brvice of the American Press associa
lon. In these editorials McKinley’s
tand on the tariff and other Questions
as severely attacked. The sajne writer
t the same time, was employed to
rite republican editorials for the re
ublican newspapers in the service of
le American Press association, warnf
• defending McKinley’s views and per
mality.” *
A contract between the United States
rowers' association, through its presi
*nt, Edward A. Schmidt of Philadel
lia, and Percy Andreae of Chicago,
organize and supervise the opefa
on of the (National Association of
>mmerce and Labor, a subsidiary of
e Brewers, by which the brewers
ere to pay Andreae $40,000 a year for
'e years, was placed in the record.
:her records showed that the Asso
ation of Commerce and Labor was ac
**ely engaged in combatting prohibi
in and that it received $300,000 from
e brewers' association and $100,000
om the National Wholesale Liquor
Balers’ association.
reat Lakes Jackies
Play Annapolis Middies
Annapolis, Md«. November 22,—In
nse interest centers in the football
.me between the Great Lakes naval
aining station of Chicago 1Ujd the
inupolis middies to be played ou Far
gut Held tomorrow afternoon. Both
nms are declared to be in the' best
condition for the struggle, and It Is
pected that it will develop into the
ttest gridiron contest of the season.

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