The Ogden standard. [volume], January 04, 1918, 4 P.M. CITY EDITION, Image 1

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J f ; FEARLESS. INDEPENDENT. PROGRE SSIVE NEWSPAPER, . " H
' 5 F'9hth YearN0 4-' PHTnt,. .' QGDEN CITY, UTAH, FRIDAY EVENING, JANUARY 4, 1918. ' tered as Second-Class Matter at the Postofflcc, Ogden, Utah, ' I
WILSON BEFORE CONGRESS I
ev I : : mU
c V S. Government Will Control Railroad System for Indefinite Period I
WAGE DISPUTES TO BE SETTLED I
I 0
SB ?!
WASHINGTON. Jan. 4. President
Wilson today laid before congress, as-
1 sembled in joint session, his recom
ml , mendations . for carrying out govorn-
mcnt operation of railroads. Bills to
V t carry out the president's ideas already
j : .': had been prepared under the super
" vision of the department of justice
, 1 and were immediately introduced with
plans for immediate consideration in
both houses.
I To guarantee proper returns to the
.j roads during the period of government
j operation, the president recommended
; .j that congress provide compensation
s nt the rate of the same net operate
j ing income as the roads have received
I for the three preceeding fiscal years.
Provision for Upkeep.
" To provide for proper maintenance
of the roads and their return to own
ers in the same order as the govern
' ' went takes them over, the president
i ;v -recommended' legislation to authorize
thoir upkeep and betterment during
i the period of federal operation. Deg
j islation to this effect is all contained
! in tho administration's bills "which
would appropriate a $500,000,000 fund
for government operation.
! Only by government operation, the
j president told congress, could tho
; unity necessary to the country be ob
,.. tained, and ho added that existing or.
' : ganlzations of the railroads should bo
disturbed as little as possible.
(. ' Guarantees to Roads.
j Tho president laid especial stress on
$ the guarantees to the roads and their
j ; stockholders.
f j The president spoke as follows:
t Gentlemen of the congress: I have
$ ' asked the privilege of addressing you
& . in order to report that on the 2Sth of
gVi December last, during the recess of
congress, acting through thesecretary
g of war and under the authority con
p ferred upon me by the act of con
ft gess approved August 29, 191G, I took
possession and assumed controL of
the railway lines of the country and
)s 1 the systems of water transportation
'i I under their control. This step seemed
j i to be imperatively necessary In the In-
terest of the public welfare, in the
f presence of the great tasks of war
1 . with which we are now dealing. As
our experience develops difficulties
i ; . and make sit clear what they are, I
; have deemed It my duty to remove
9 those difficulties wherever I have the
legal power to do so. To assume
I $ontrol of the vast railway systems c
I , , the country is, I realize, a very heavy
I I responsibility but to fail to do so in
a . the existing circumstances would have
I i been a much greater. ' I assumed the
less responsibility rather than the
weightier. I am sure that I am speak
ing the mind of all thoughtful Amer
icans when 1 say that it is our duty,
as the representatives of the nation, to
do everything that it is necessary to
do to secure their complete mobiliza
tion of the whole resources of Amcr
; ica by as rapid and effective a means
' as can be found. Transportation sup
; Plies all the arteries of mobilization.
Unless it bo under a single and unified
direction, the whole process of the na
tion's action is embarrassed.
I Unification True American Spirit.
It was in tho true spirit of America
and it was right, thac we should try
w to affect the necessary unification un-
der the voluntary action of those who
j were in charge of the great railway,
WITH THE AMERICAN ARMY IN
;, FRANCE, Thursday, Jan. 3. (By the
is Associated Press.) On behalf of the
; American expeditionary force General
Pershing has answered New Year's
messages from the United StateB. A
message to tho army from the Chil
dren's American Loyalty league read:
"Dear American soldiers: We know
a the sacrifice you have made for us
and will mako that wo may be safe
and happy. We thank you and wish
youjall a Happy New Year."
General Pershing responded as fol
lows :
"The American soldiers in France
are very glad to have your' message.
7,
.
i
properties, and we did try it. The
directors of the railways responded to
the need promptly and generously.
The group of railway executives who
were charged with the task of actual
co-ordination and general direction
performed their- task with patriotic
zeal and marked ability, as was to
have been expected, and did, I believe,
everything that it was possible for
thorn to do in the circumstances. If I
have taken the task out of their hands,
it has not been because of any dere
liction or failure on their part, but
only because there were sgme things
which the government can do and pri
vate management can not. We shall
continue to value most highly the ad
vice and assistance of these gentlemen
and I am sure we shall not find them
withholding it.
Common Service Necessary. '
IU.had become unmistakably plain
thmxmly under government adminis
tration 'can the entire equipment of
I the transportation system be fully and
unreservedly thrown into common
service without injurious discrimina
tion against particular properties. Only
under government administration can
an absolutely restricted and unem
barrassed common use be made of all
Cracks, terminals, terminal facilities
and equipment of every kind. Only
under that authority can new termi
nals be constructed and developed
without regard to the requirements
or limitations of the particular roads.
But, under government administration,
all these things will be possible
not instantly but as fast as practical
difficulties, which can not be conject
ured now, aro surmounted.
Little Disturbance of Personnel.
The now administration will be car
ried out with as little disturbance of
the present operating organizations
and personnel of the railroads as pos
sible. Nothing will be altered, or dis
turbed, where It is not necessary to
disturb. We are serving the pub
lic interest and safeguarding the pub
lic safety, but we are also regardful
of the interest of those by whom these
great properties are owned and glad
to avail ourselves of the experience
and trained ability of those who have
been managing them. It fs necessary
that the transportation of troops and
of war materials, of food and of fuel
and of everything that is necessary
for the full mobilization of the ener
gies and resources of the country
should be first considered, but it is
clearly in the public interest also that
the ordinary activities jind the normal
industrial and commercial life of the
country should be interfered with and
dislocated as little as possible and the
public may rest assured that the in
terest and convenience of the private
shipper will be as carefully served and
safeguarded as it fs possible to serve
and safeguard it in the present extra
ordinary circumstances.
Present Authority Sufficient.
"While the present authority of the
executive suffices for all purposes of
administration and while of course,
all private interests must for the pres
ent give way to the public? necessity,
it is, I am sure you will agree with
me, right and necesesary that the
owners and creditors of the railways,
the holders of their stocks and bonds,
should receive from the government
No sacrifice we can make will be too
great if we can insure the safety and
happiness of the children of Amer
ica." From Dr. Anna Howard Shaw, suf
frage leader and member of the worn
an's council of national defense, came
this greeting:
"The women of the United States
are with you in the spirit of service.
You are our standard bearers, our
hope. We love you, believe in you,
pray for you."
General Pershing replied:
"All ranks of the American expedi
tionary force unlto in heartfelt thanks
to the women of America for their j
STATE 'SENATOIZ
4 fi
Morris S. Halliday.
Law making has no appeal to
Morris S. Halliday, New York state
Benator from Ithaca, when there is a
war on. He has resigned from the
senate and is in the aviation training
camp at San 'Antonio, Tex.
an unqualified guarantee that their
properties will be maintained through
out the. period of federal .control n
as good repair and complete equip
ment as at present and that the sev
eral roads will receive under federal
management such compensation as is
equitable and just, alike to their own
ers and to the general public. I would
suggest the average net railway op
erating income of the three years end
ing June 30, 1917, I earnestly recom
mend that these guarantees bo given
by appropriate legislation and given
as promptly as circumstances permit.
Essential Justice of Guarantees.
I need not point out the essential
justice of such guarantees and their
great influence and significance as
elements in the present financial and
Industrial situation of the country. In
deed, one of the strong arugments for
assuming control of the railroads at
this time is the financial argument.
It is necessary that the values of rail
way securities should be justly and
fairly protected and that the large fi
nancial operations every year neces
sary in connection with the mainten
ance, operation and development of
the roads should, during the period of
the wnr be wisely related to the finan
cial operations of tho government.
Our first duty is. of course, to conservo
the common interest and the common
safety and to make certain that noth
ing stands in the way of the success
ful prosecution of the great war for
liberty and justice, but it is an ob
ligation of public conscience and of
public honor that the private inter
ests we disturb should be kept safe
from unjust injury and it is of the
utmost consequence to the government
Itself that all great financial opera
tions should be stabilized and co-ordinated
with the financial operations
of the government. No borrowing
shoud run athwart the borrowings of
the federal treasury, and no funda
mental industrial values should any
where be unnecessarily Impaired. In
the hands of small Investors in the
country as well as in national banks,
in insurance companies, in savings
banks, in trust companies, in financial
agencies of every kind, every security,
the sum total of which runs up to
some ten or eleven thousand millions,
constitute a vital part of tho structure
of credit and the unquestioned solid
ity of that structure must be main
tained. Section 8 provides that the president
may execute any of the powers grant
ed him through whatever agencies he
General Pershing Answers
- American New Year Messages
love and prayers. The patriotism of
our incomparable women, than whom
there are none others more noble,
shall be our constant Inspiration until
the great task which is entrusted to
us shall be achieved. Accept our best
wishes for the coming year and our
firm confidence in final success."
"To Christmas messages from the
women of the American Red Cross the
American commander sent the thanks
of all ranks, adding: The love and
confidence of our women will make us
all better men and better soldiers and
hold us firm in the courage and' de
termination to win."
IID
Meeting of Transportation
Crisis by Taking Over Rail
roads Told in Senate.
SEN. HOLLIS' SPEECH
Prompt Action of British Soon
After War Opened Brought
Quick Relief.
WASHINGTON, Jan. 4. The Eng
lish method of meeting tho transporta
tion crisis by taking over control of
the railroads immediately after that
country entered tho war in 1914 was
explained in a speech made in the
senate today by Senator Hollis, of
New Hampshire. This was tho first
speech to be delivered in the senate
on the railroad situation and in view
of President Wilson's address to con
gress urging enactment of railroad
legislation which- will effect complete
government control, members fol
lowed Senaor Hollis with interest.
Under the English method, Senator
Hollis said, the government guaran
teed stockholders the same earnings
as paid during the year preceding the
war while under a plan of concilia
tion and arbitration wages were in
creased through war bonuses with due
regard to the increased cost of living.
Strikes, he said, ha,vc proved unnec
essary and as a result the employes
have maintained the good will of both
1:hoi public arid the'goverument. '
"The unions of railway men through
their executive committees." declared
Senator Hollis, "have acted through
out the war In a patriotic manner, bas
ing their claims to advance in wages
or bonuses on the increased cost of
living and not on their purpose to pre
vent the operation of the railroads.
They have realized that a strike would
be a strike against the nation, not
against the companies. There have
been no railway strikes in England
since the war began. The conduct of
the railways and the conduct of the
men has been in tho public interest
with every indication of conciliation
and good feeling on both sides. This
desirable condition can be attributed
to but one cause that is the feeling
of the men that their sacrifices are
made for the public welfare and not
to swell the profits of their employers.
That this is a sound deduction is plain
when we consider the hundreds of
strikes in private plants where profits
aro not controlled."
The Now Hampshire senator said
that under tho English plan, freight
cars were pooled and delay in loading
and unloading of cars heavily penal
ized. Passenger trains also were can
celled, reservation of seats abolished,
excursion tickets abolished, traffic di
verted and passenger rates increased
50 per cent, not for the purpose of in-
, creasing revenues but to discourage
i travel.
may determine and-may fix reasonable
compensatiou for service.
Section 9 would authorize the pres
ident to extend the federal workmen's
compensation law to apply to railroad
employes on audi terms and conditions
as will give due consideration to reme
dies available under state compensa
tion laws or otherwise.
Section 10 givey t.':e president in
addition to powers specifically pre
scribed, any other and further pow
cr necessary.
Section 11 provides that while un
der federal control the roads aro sub
ject to all laws and liabilities as com
mon carriers and suits may he
brought by and against them and judg
ments rendered as provided by Jaw.
Except with the president's written
assent, however, no attachment or ex
ecution is to be made on any proper
ty used by u road in performance of
its common carrier duties.
Section 12 stipulates thar any per
son or corporation acting for or em
ployed by a carrier or shipper or oth
er person who shall fail to observe
any of the provisions of thi proposed
law, or "shall knowingly' interfere
with, or impede possession, use, (oper
ation or control of any railroad or
transportation system taken over by
the president," or shall violate any
order or regulation for .carrying out
the law, shall be guilty of a misde
meanor and punishable by a iulxhnum
i fine of $5,000, or if a person, by im
prisonment for not moro than two
years or both.
Federal as well as slate criminal
statutes whero applicable, shall ap
ply to all railroad officers, agents and
employes. Prosecutions will be In
federal district courts.
Section 13, the last, provides for
the indefinite continuance of the law.
It makes this brief provision:
"The federal control of transporta
tion systems herein' and heretofore
provided for shall continue for and
during the period of the war and un
til congress shall thereafter order otherwise."
CONTRACTORS
MAKEBIGPROFIT
Testimony Brought Out in
Senate Ship Program Inves
tigation Dissatisfies.
CLOSE QUESTIONING
Committee Asks for Letter to
General Goethals Be Brought
Before Them.
, WASHINGTON. Jan. 4. Profits
amounting to more than a million dol
lars were made by the Clinchfield
Navigation company in a deal involv
ing government shipbuilding contracts,
according to testimony today before
the senate commerce committee inves
tigating the shipbuilding program.
This information was disclosed by
Theodore R Ferris, chief constructor
for the Emergency Fleet corporation,
and by a report by a district officer
of the shipping board at oday'a hear
ing. The Clinchfield corporation, it was
declared, sold to the government four
ships under construction for the com
pany in the Sloane Shipyard corpora
I tlon of Seattle, making a nroflt of
$420,000 and later obtained for the
Sloano corporation contracts for
twelve more ships on which it made a
5 per cent profit.
Wltpcss Closely Questioned.
Senators questioned Mr. Ferris
closely as to the reason for letting 'the
contracts for the twelve ships to the
Clinchfield corporation, an owner but
not a builder of ships, and expressed
dissatisfaction over a deal by which
the corporation sold to the government
the four .ships at a price so much
higher than it was paying for their
construction.
Mr, Ferris declared he knew noth
ing of the financial arrangements rec
ommending the Clinchfield corporation
to General Goethals in a letter. The
committee asked that the letter be re
produced. nn
WILSON NAMES
NEW OFFICIALS
"WASINGTON, Jan. 4. Charles E.
Hardy of Nogalas, Ariz., was today
nominated by President Wilson as
customs collector at Nogales.
Howard Hathaway of Evertt,
Wash., was nominated for collector of
internal revenue for Hawaii.
Other nominations included:
Registers of land offices Alex
Nisbot, Evanston, Wyo.; Mrs. Mary
Wolfe Dargln, Denver, Colo.
Receivers of public monies George
I. Smith, Portland, Ore.; Richard R.
Turner, Roseburg, Ore.; James P.
Folger, Evanston, Wyo.
CAILLAUX UNDER EXAMINATION.
PARIS, Thursday, Jan. 3. Former
Premier Joseph Caillaux, who is ac
cused of treasonable activities, was
under examination for nearly five
hours today by Captain Bouchardon,
the military investigator. The for
mer premier will be interrogated again
shortly.
NEW YORK CALLED TO AID.
NEW YORK, Jan. 4. Representa
tives of the war department have
asked Fire Chief Kenlon of New York
to send fire apparatus to fight flames
In an army storage house at Hoboken.
Chief Ivenlon dispatched a fire boat
to Hoboken. The Delaware, Lacka
wanna & Western railroad also sent
three fire fighting tugs from this city.
uu
True love is responsible for many
follies and a few crimes.
HOBOKEN FIGHTS
5ER BLAZE
Firemen, United States Sol
diers and Civilians, Aided by
New York, Save City.
40-MILE GALE RAGING
Thousand Soldiers Guard Dis
trict and Flames Kept From
Munitions Factory.
HOBOKEN, N. J., Jan. 3. Fire
which threatened part of the water
front, which is within government con
trol, broke out again today. The blaze
was discovered in a six -story building
occupied by the Gatti-McQuade com
pany, mill supplies manufacturers in
the barred zone. That structure seem
ed doomed and the flames spread to
adjoining buildings. '
All the fire apparatus in Hoboken
was called out to prevent spread of the
flames to the Hudson river piers and a
nearby munitions' factor?". Several
ambulances also were summoned and
soldiers were placed on guard and Ch
ilians were called on for aid. Owing to
tho cold weather the water pressure
was noor.
The police ordered all the tenants' In
the buildings in the vicinity to move,
out.
Paper stock estimated to be worth
$100,000 was destroyed in the Gatti
McQuado building.
A number-pf firemen -were "overedtp""
by smoke and intense cold and remov
ed to hospitals. Every ambulance in
Hoboken was summoned to the scene.
HOBOKEN, Jan. 4. Firemen", Unit
ed States soldiers, and civilians aided
by New York fireboats and railroad
tugs brought a stubborn .blaze under
control after a fight of several hours
in the hear of the industrial section
paralleling the government-controlled
water front here today.
A six-story manufacturing plant
containing paper and other mill sup-!
plies owned by the Gatti-McQuade
company was destroyed with an esti
mated property loss of $250,000.
Numerous small fires, caused by
sparks, carried by a forty -mile wind
were checked.
Fireboats reached Hoboken after
cutting their way through tho Hud
son river ice and prevented the firo
from spreading to a number of ships
loading with war supplies.
About one thousand soldiers guard
ed the district and civilians were
called on for patrol duty. A munitions
factory in the vicinity was not
touched by the flames.
oo
Preparations Complete for
Opening on Saturday of
School for Officers.
WASHINGTON, Jan. Prepara
tions are complete for the opening
Saturday of the third series of offi
cers' training camps. From the non
commissioned and enlisted personnel
of the regular army, the national
army and the national guard, there has
been drawn thousands of men whose
qualifications, -it is thought, entitle
them to advancement into the com
missioned grades. In addition 2500
candidates have been selected from
specified schools and colleges incud
ing military training In the cirrlculum.
Haig's Forces Make 1 I
Gains During Night, !j I
South of Lens. jj I
ARTILLERY FIGHTING I
Local Battles Continue 'j I
on Cambrai Front arid lj I
Near Canal' ii I
i!
LONDON, Jan. -i. "Local fighting I,
took place yesterday on the Cambrai
front in the neighborhood of the Canal ' i'
du Nord without producing any mater-
ial change in the situation," the war j
office announces. I
"We advanced our lines slightly dur- 'H
ing the night south of Lens. i
"There was some hostile artillery M
activity during the night in the Bulle-
court sector and also in the Ypres H
REVIEW OF WAR SITUATION. j
Forecasts that Russian's refractory j
attitude regarding the German peace
terms, coupled with home objectioni
to them, would lead the German gov- j jH
ernment to put the situation beforo IH
the reichstag in some form, were !
made good by today's news of the ap- H
pearancc of Chancellor von Hertling j !
before the reichstag main committee. fl
Either Viscount Grey, ' Earl
Reading and J. Austin Cham- .
berlain Acceptable to
Washington. j
LONDON, Jan. 3. It is suggested f IH
editorially by the Daily Chronicle that H
either Viscount Grey, former foreign IH
secretary, Earl Reading, lord chief jus- jl
tlce, or J. Austen Chamberlain would H
be acceptable as ambassador to .H
Washington. H
It 'has bejm reported that Sir Cecil
Arthur Spring-Rice, the British am- M
bassador to the United States, will : M
soon retire from that post Yesterday H
Sir Cecil said farewell to President j H
Wilson, having announced previously t H
that he was going heme on a leave of H
Entente Allies May Recognize l
the Bolsheviki Government fl
rH
LONDON, Jan. 4. Recognizing of
Lenine government in Russia by the
Entente Allies is probnble owing to the
developments in the Russo-German
negotiations, according to tho Dally
Chronicle. The statement apparently
is based on a contribution "by a diplo
matic correspondent" which is printed
beneath it. The writer says that owing
to the Bolsheviki discovery of German
duplicity anything may happen.
Three Alternatives in Situation.
"There are," he says, "thrqo alterna
tives: The Bolsheviki may givo way,
the Germans may givo way or thero
will be a rupture of relations. The
first Is hardly likely in view of Foreign
Minister Trotzky's declarations. Tho
second is possible for the Germans are
past masters in the art of specious
Qorapromise. But the third is most
probable since the Bolsheviki have ex
hibited a perspicacity which was hard
ly expected in this country.
"Russia, the land of boundless sur
prises, may quite possibly witness a
revival of war, If not in the most ac
tive form it might at least be a sul
lenly defensivo war necessitating the
keeping on the frontier of a consider
able German force. It would at least
prevent those pleasant and profitable
commercial exchanges which Germany
hopes for.
"Assuming such a situation and the
consolidation of Bolsheviki power, pro
vided failure to extract a peaco does
not wreck the Lenine regime, then rec
ognition of that power as the de facte H
government follows. Since that is so B
a Socialist would be the logical rep- i 1
resentative of that government and H
Maxim Lltvinoff, who has been ap- iH
pointed, is a likely enough occupant of lH
the embassy." lo-l
New Ambassador to Be Sent. il
Referring to the retirement of Sir lil
George W. Buchanan, the British am- ll
bassador to Russia, whose services aro ll
praised highly, the writer says: El
"In his placo probably would be sent jfl
a diplomat in marked sympathy with flLI
the ideas of revolutionary Russia. ill
"Be that as it may, we may expect Tm
shortly some new statement of policy ll
( Continued on Page 4 ) El