Atlanta tri-weekly journal. (Atlanta, GA.) 1920-19??, May 20, 1920, Image 1

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mirntia Sri-ittKla 2 om- nal VOL. XXII. NO. 78. ACTION IS EXPECTED ON FREIGHT CONGESTION W. J, HEN MED COMMITTEEMAN 81 STATE -CONVENTION Smith and Watson Men Chosen Delegates After Palmer Men Refuse to Ac cept Third of Delegation Although the business transacted by the* presidential preference con vention was slow and tedious in its progress, when reduced to writing it is not so very lengthy. It consists of three main features, to-wit: 1. The election of William J. Ve reen, of Moultrie, as Democratic na tional committeeman from Georgia to succeed Clark Howell, of Atlanta, who has held the position twenty five years. 2. The adoption of resolutions op posing the League of Nations brought back from Versailles, opposing a third ter..i nomination for President Wilson and making other pertinent declarations. 3. The election of a delegation to San Francisco composed of support ers of Hoke ' Smith and Thomas E. Watson, after an offer by the Hoke Smith floor leaders to divide the del egation into three equal parts had been rejected *by the Palmer leaders. The convention started at 10 o’clock Tuesday morning. It finish ed Tuesday night just before mid night. A few minutes after adjourn ment, and after the Smith and Wat son delegates had left the Atlanta theater, the Palmer delegates named by the Palmer caucus Monday night, and voted down when presented to the convention, held a short confer ence in the theater and decided to go to San Francisco and contest the Smith-Watson delegation. They also decided, if seated at Frisco, to re elect Clark Howell to the national committee. As everyone expected, the conven tion paid no attention to rule ten passed by the Democratic state exec utive committee, ■"••oviding that the delegates to San Francisco should be selected from the supporters of the candidate receiving the highest county unit vote in the pri mary. The convention proceeded as a sovereign in all matters before it, and not as the creature of the state committee. It, seated its own members, made its own rules of procedure, elected its own officers, adopted its own platform, elected its own delegates to San Francisco and expressed its own voice in the mat te: of the national committeeman. Contesting Delegation The net result of the whole mat ter is just this: There will go to San Francisco a delegation composed of Smith and Watson supporters, elected by majority Vote of the con vention and sent without instructions as to the Democratic presidential nomination, and this delegation will claim to be the regular delegation en titled to seats on the floor of the na tional convention: while there will go as a rival delegation the one elected by the rump convention held in the aisle of the Atlanta theater after the inain convention had adjourned. The convention delegates, elected Tuesday night, will claim that they are the regular delegates regularly elected in accordance with custom, precedent and law; that the state committee was without authority to make any rule to govern a conven tion, because a convention is a sov ereign; that though rule ten attempt ed to direct the naming of delegates for the plurality candidate, another rule provided that the convention should name the delegates, and that its authority was superior to the au thority of the state committee. James J. Flynt, chairman -f the Democratic state executive commit tee, called the convention to order at 10 o’clock Tuesday morning. The Palmer delegates occupied the center section of the parquet floor of the Atlanta theater. The Watson dele gates occupied the section on his right. The Smith delegates occupied the section on his left. The bal cony and gallery were filled with spectators. Although the con vention aws characterized by fre quent outbr enthusiasm, there was no suggestion of an attempt on the part of delegates or spectators to create disorder or interfere with its deliberations. The presiding offi cers insisted upon order and en forced it. Zebulon Vance Peacock, of Haw kinsville, a former state senator and a prominent lawyer and business man, was elected temporary chair man, and E. B. Moore, clerk of the George house of representatives, was elected temporary secretary at the morning session. A committee on credentials, consisting of one from each congressional district, was named by Chairman Peacock to pass upon contests. The convention then took a recess until 2 o’clock while the credentials committee held its hearings. Chatham Delegates Seated Thomas E. Watson contested Chat ham county, which went for Pal mer, on the ground that his name was scratched off the ballots. He contested Wilkinson county, which had no primary and was awatded to Palmer as the ’plurality candidate. He contested Bulloch county, which tvent for Palmer, on the ground tha r his supporters were given no oppor tunity to vote in one country pre cinct. where no ballot box was pro vided. Senator Smith contested Murray and Atkinson counties, which went for Palmer, on the ground that the county executive committees had arbitrarily excluded certain pr'e (Continued on Page 6, Colump 4) PILMEBITESNIME OWITDELEGATES TO ’FRISCOCONVENTION Also Select Committee to Prepare Contest and Elect Clark Howell National Ex ecutive Committeeman Immediately following the ad journment of the state Democratic, convention, shortly before 1 o’clock Wednesday mornng, there was a meeting in the parquet of the At lanta theater of a number of Palmer delegates, who named Hollins Ran dolph, of Atlanta, chairman and P. C. McDuffie., of Atlanta, secretary and elected Clark Howell, of At lanta, to succeed himself as state Democratic national committeeman. Explaining this meeting, Mr. Ran dolph said later that it was “in no sense a convention. “The meeting at the Atlanta the ater early Wednescday morning, fol lowing the adjournment of the state convention, was a meeting on ly of the bona fide Palmer dele gates to the Democratic national convention at San Francisco,” said Mr. Randolph. “If the’ impression has gone abroad that it was a con vention, or that it is- our purpose to contend that it was a convention, the impression is entirely wrong.” . Mr. Randolph was asked concern ing the pre-arranged program of the Palmer forces to hold a “rump con vention” in the event of their fail ure to dominate the state conven tion, which plan was understood to have been agreed on at the Palmer caucus Monday night. No Definite Program "As a matter of fact,” he said, “the Palmer caucus Monday night .adjourned, without any definite pro gram of action, and no Palmer dele gates bolted the state convention. All that happened was for the Palm er national delegates to meet and organize at the adjournment oft Tie state convention, which is not con trary to practices heretofore fol lowed.” From the number of Palmer dele gates to the state convention in the "meeting” held after its adjourn ment, anti-Palmer men generally re garded the meeting in the light of a “rump convention.” The meeting laid grounds for the contest which it contemplates mak ing at San Francisco for in the national convention, byway of which it went through the formality of re-electing Mr. Howell as na tional executive committeeman. This action, It was announced, was in accordance with the cus tom and practice in Georgia—a cus tom of forty years’ standing under’ which the national executive com mitteeman has been chosen by the “regjilarly elected” delegates to the Democratic national conventions. The delegation also appointed from among its number a committee of .five attorneys to prepare its case for presentation, first, to the national committee at San Francisco, and, second, to the credentials committee of the national convention. Com posing this committee are: Albert Howell, ( Jr., David C. Barrow, of Savannah; H. H. Dean, of Gainesville and Atlanta; Sam C. Bennett, of Al bany, and J. R. L. Smith, of Macon. Palmei? Delegation The meeting, it was said, was at tended by the full membership of the delegation as agreed upon by the Palmer caucus Monday and defeated for election by the state convention, as follows: State-at-Large—P. A. Stovall, Sa vannah; C. E. Dunbar, Augusta; Hollins N. Randolph, Atlanta; Ogden Persons, Forsyth; H. H. Dean, Gainesville; W. H. Davis, Waynes boro; S. D. Dell, Hazelhurst; W. T Anderson, Macon —each 1-2 vote. First District—A. M. Deal, States boro; Dr. H. R. Tarver, Guyton; C. B. Jones, Riceboro; D. W. Barrow, Savannah. Second District —E. L. Smith, Edi son; S. B. Brown, Albany; W. I. Mc- Intyre, Thomasville; Sam S. Ben nett, Albany. / Third District—J. E. Hays, Monte zuma; C. M. frown, Cordele; Dr. J. C. Dean, DatVson; R. A. Hinton, Reynolds. Fourth District—O. A. Moore. Tex as; W. R. Jones, Greenville; P. T. Miller, Columbus; A. H. Thompson, LaGrange. Fifth District —Albert Howell, Jr., Atlanta; P. C. McDuffie, Atlanta, J. D. Robinson, Atlanta; Aldine Cham bers, Atlanta.* Sixth District—R. E. Plowden, Roberta; John R. L. Smith, Macon: J. T. Williams, Round Oak; Curran R. Ellis, Macon. Seventh District Dr. W. E. Wood, Dalton; L. W. Reeves, Car tersville; Dr. L. S. Ledbetter, Cedar town; Lee J. Langley, Rome. Eight District —Blanton Fortson. Athens; J. R. Tweedy, Eatonton; R. D. Callaway, Washington.; N. D. Arnold, Lexington. Ninth District —Dr. Jeff Davis, Toccoa; Jud Ball Ground: R. E. A> H&mby, Clayton; John Quillian, Gainesville. Tenth District —Wallace B. Pierce, i Augusta; W. W. Abbott, Louisville; D. S. Sanford, Milledgeville; George C. Evans, Sandersville. Eleventh District—W. E. Sirmang. Waycross; M. D. Dickinson, Doug las; M. R. Ousley, H. J Quincey, Ocilla. Twelfth District —Sam A. Nunn, Perry; I. L. Price, Swainsboro: J. W. Hodge, Elko; N. L. Gillis. Jr., Soper ton. is the contention of the Palmer delegation, who will appear in San (Continued on 6, Column 2) ] 11, S. GOVERNMENT iwm FIXI« DEBT David Lawrence Discusses Probability of President Appointing Representative to Sit in at Spa Meeting BY DAVID LAWRENCE (Copyright, 1920, for The Atlanta Journal.) WASHINGTOTN, May 19.—The United States government may he officially-represented at the meeting between the allies and Germany at Spa where it is expected that a definite sum will be fixed which the Germans will be obligated to pay as war indemnity. Although America has not ratified the peace treaty under which the reparations commission was to de termine the amount of German in demnity and America was specifical ly designated fob membership in that commission, a question has' been raised here whether it would not be within the jurisdiction, and power c.f President Wilson to appoint a plen ipotentiary to sit in the most im portant meetings. If, it ig contended, the president could appoint a commission to nego tiate peace, he can appoint a com mission or an envoy to discuss fur ther with the enemy the worinkg out of the terms of the armistice. All the meetings thus far in Europe have been between the associated powers, and American diplomats have been unofficially “observers” without any opportunity to participate ’q the dis cussion. Tired of “liooking in Keyhole” Officials here are getting tired of the humiliation of having European governments discuss* affairs vit,al to America’s economic welfare with American representatives “looking in through the key hole” as one of the treasury officials phrased it. Strictly speaking, the president has an important decision to make in connection wot hthe Spa conference, for Germany really signed^.the peace treaty and consented to the meeting of big powers in the reparations commission on the expectation that America would be a member of that body. The president asked Senator Lodge to co-operate in approving the appointment of an American repre sentative for the reparations com mission but the Republican leader published the president’s letter and took no further action. It would not be surprising to find the president adverting to this inci dent again when he again returns the treaty of Versailles to the senate for action. Cablegrams from abroad within the last week have told of the various plans and schemes which are being concocted abroad to cancel or postpone the payment of the allied debt to the United States. f Would Save Time None of these plans has the slight est chance of being accepted either by the executive branch of the gov ernment or congress, which body must approve any change in the ex isting status of our foreign debt. But, it is pointed out, the United States could save the allies con siderable time and trouble, and many misunderstandings would be avoid ed, if the United States could sit down at a table with the allies and the Germans and assist in the eco nomic reconstruction of the world. Delay on the treaty has prevented this thus far. “The allies must get around tc the American point of view express ed at the peace conference,” said Bernard M. Baruch, head of the American financial mission, today. “They must fix a definite and rea sonable sum for Germany to pay. And when that is fixed you will see a revival of exchanges and revival of production throughout the world.” Practically the same view was given the writer by Norman Davis, another financial expert who went to Pari s for the United States gov ernment and who is assistant sec retary of the treasury in charge of foreign loans.' “The only way any appreciable amount can be collected from Ger-, many,” said Mr. Davis, “is to fix a definite and reasonable sum and capitalize it by issuing obliga tions.” Os course Europe need not ex pect America to accept these obliga tions, however useful they may be in the refinancing of their own debts. For, as far as the United States is concerned, she looks to France and England alone to pay the money owed us and is not at all disturbed b ythe absurd sugges tions that the United States should accept Germany reparation bonds in exchange for the signatures and guarantees of the British empire and France. Another thing, the viewpoint ex pressed in treasury quarters here, is that the allies had better fix a reasonable sum fpr Germany to pay and do it quickly lest the amount that the Germans finally are able to pay dwindles by reason of the very vagueness and uncertainty of allied policy. Reports to our gov ernment from Germany show a striking apathy. The Germans say. “what’s the use, we' must keep on paying the rest of our lives and we can’t pay.” In other words a rea sonable indemnity must be fixed (Continued on Page 6, Column 5) HEALS STOMACH TROU BLE AND TAPE WORM AT HOME A sample, home treatment which gives quick and lasting relief in all forms of stomach trouble, including tape worms or other worms, is being supplied to sufferers by Walter A. Reisner, Box C-64, Milwaukee, Wis. He is so confident of results that he guarantees absolute satisfaction in every'case or there is no charge for the treatment. If you suffer from stomach trouble or any kind of worms, send him your name and address today, as this notice may not appear again.—(Advt.) ATLANTA, GA., THURSDAY, MAY 20, 1920. WHY DON’T MOVIE MARRIAGES LAST? | s Meer — Ajghsz —0" MJ L S' WV** I \ Jfc Mrs. Carlyle Blackwell and children. i TRAITOR CHARGE TO SOUTHERNERS BRANDED AS LIE (The Atlanta Journal News Bureau, 623 Building.) BY THEODORE TILLER WASHINGTON, May 19.—Section al. feeling which was supposed to have been obliterated through the comradeship in the World waa of the soldiers of the north and the south, was fired again in the house Tuesday afternoon wh'en Representa tive Martin B. Madden, of Illinois, reiterated his charge that Lee, Jack son' and other Confederates were “traitors” to their country. “You are a liar.” shouted a score of more men on the Democratic side of the chamber. “You are a d—- liay,” rose one voice above the ethers, which gallery ob servers sqid was that of Represen tative Oliver, of Alabama. Southern Democrats, began to move down toward the well of the housle and as they moved mechanically to ward the front rows, some of them with clenched fists. Representative Madden began to retreat slowl/ back toward the father side of the Repub •lican section. Representative Madden was recog nized after a speech by Representa tive Charles M. Stedman, of North Carolina, who arose tc reply to the original charge of Madden, made in the house last Saturday. Major Stedman, eighty years old, is the only surviving Confederate of ficer in the house, and he had just concluded an impassioned protest against the revival of treacherous changes and slurs against the men whA wore the gray. “Mr. Madden’s remarks on’Saturday wer4 an insult to General Lee and the ’prave soldiers of the Confed eracy,” said Representative Stedman. “Mr. Maddens stands alone in a wilderness of his own creation.” Major Stedman’s speech was re ceived with prolonged applause on the Democratic side and a number of Republicans arose and applauded the venorable southerner. Representative Madden then took the floor and asserted he had no apology for the statement he made Saturday during the speech of Repre sentative Upshaw, of Georgia. Mr Upshaw deplored the fact that the names of Lee and Jackson had not been placed on memorial tablets at the Arlington Memorial ampitheater, built in honor of the heroes of all wars of the States. “Does the gentleman think that loyal people should now be asked to pay tribute to these men who were traitors to their country in its time of need?' asked Representa tive Madden. Representative Madden said be de sired to repeat what he said pre viously, that these Confederate lead ers were “traitors” and it was then that passion and sectional feeling became mote rampant in the house than m years. “Is there anybody here that will deny that?” nollowed Madden, turn ing toward the Democratic side.” “Yes, all of us do,” was '.he shout 111 , ret urn which came from possibly a- half hundred throats. Meanwhile Representative Madden was speaking and giving gradually toward the ex treme Republican right while south ern Democrats continued to move to- W / r A t! L e front rows and the we): of the house. Many of them were visibly angry and muttering threats I and for a time personal violence was i eared. “They were traitors to the flag ”• shouted Madden again, whiles, there was more confusion and angrv re sponses. ' Representative Husted, who was presiding temporarily, did not at tempt to check the sudden flare-up of bitten feeling, but Representative Mondell, the Republican floor leader doubtless fearing* that the situation was getting beyond bounds, took the floor and observed that the discus sion was not pertinent to a minor bill then before the house. His in tecession brought order, bus through out the afternoon southern members of the house were visibly excited and angry and the incident was one for heated cloakroom and corridor discussion. Representative Madden, an Illinois Republican, more than once has en gaged in | tilts over sectional ques tions, but none of them reached the seriousness of today’s outbreak. His next latest outbreak was against Jim Crow railroad accommodations in the southern states, but his amendment to the railroad bill to abolish Jim Crow state laws received only a handful of votes. The aged Representative Stedrnan spoke with considerable emotion, preceding Representative Madden. Major Stedman servbd with Lee’s army throughout the entire war and was three times wounded. He is a southerner of the old school, with snow-white hair and beard, with a courtly bearing that is reminiscent of the old south. So aroused was he over Representative Madden’s re marks of Saturday that he paced the corridors nervously while awaiting an opportunity this afternoon to reply. Arising, finally, in defense of Lee and Jackson, and the other heroes of the Confederacy, Major Stedman said, in part: “During the entire unfor tunate Civil war the courage and sin cerity of the Confederate soldier was never questioned by his brave op ponents. The ability and integritty of BY JAMES HENLE (N. B. A. Staff Correspondent.) NEW YORK. Many’s the heart that gees pit-a-pat, 'many’s the' breath that comes deeper as the movie hero discloses his love to the film heroine. “Ain’t he just too grand for any thing?” asks Sadie. “Ah-h-h-h” sighs Mabel. Well, the testimony of movie wives doesn’t seem to run that way. There was Mrs. Douglas Fair banks, the first, who found it neces sary to divorce “Doug,” while scores of other women have come to the conclusion that though moving pic ture stars may be all right as sweet hearts, they are often far from per fect husbands. “Too many vamps about the studios,” is one wife’s verdict. “Their high salaries turn their beads,” is another’s. Mrs. Ruth H. Blackwell, wife of Carlyle Blackwell, is the latest one of the'movie wives to bring her mar ital difficulties into court. This is not the first time that sfie has ap pealed to the law, either. On this -occasion MrA. Bladkwell, who is separated from her husband, asked that her husband be compelled to pay her $l5O instead of sllO a week, the amount previously fixed. Her motion was granted. Mrs. Blackwell’s attorney - says that his client obtained the star his first motion picture job, but that his success “went to his head” and t became impossible for Mrs. Black well to continue to live with him. Lee. Jackson and other great leaders of the south was never minimized. Their supreme sense of duty, their unselfish devotion to what they deemed to be the cause of right, have been recognized in every land where patriotic heroism has a home. “1 regret the gentleman from Illi nois gave expression to the language as reported by the official stenograph er. He stands isolated and alone in a wilderness of his own creation, where he will finjl neither renown noi’ -happiness.” Representative Stedman then told the story of the ancient city of Ephesus and Herostratus who lived there. Herostratus, he said, seeking either eternal fame or notoriety, burned down the temple of Diana be fore which thousands had gathered daily. “The craving of Herostratus for notoriety was gratified,” said Repre sentative Stedman. “He destroyed the temple 356 B. C., and . for more than two thousand years his name has been recorded ypon the pdges of history as a synonym for degrada tion and moral depravity. Whoso ever characterizes General Robert E. Lee as a traitor may well beware lest he inherits from Herostratus his crown of infamy. “The memory of Robert E. Lee and Stonewall Jackson will live trans mitted from generation to generation when the costliest tombs erected by the love of their countrymen shall have perished by decay and the wall of Arlington Memorial Amphitheater have crumbled into dust.” THE NEXT FIVE MONTHS WILL BE BIG NEWS MONTHS The national conventions of both the Democratic and Republican parties will soon be staged — And then will come the campaign with all of its excitement ind enthusiasm— And that will be only a part of the interesting news which readers of THE ATLANTA TRI-WEEKLY JOURNAL will find in their paper every Tuesday, Thursday and Saturday from now to October Ist. FIVE MONTHS FOR 50c We are making a special offer to send The Atlanta Tri-Weekly journal to you from now until October Ist for only soc. SEND YOUR 50c TODAY In order not to miss another copy, send in your 50c today and your subscription will be started at once. Fill in the following blank, with your name and address, and send it together with 50c today. THE ATLANTA TRI-WEEKLY JOURNAL, Atlanta, Ga. Here is 50c enclosed, for which send me THE TRI-WEEKLY JOURNAL from now until October 1, 1920. Name R. F. D................... P. 0................................. 5tate..................... ACTION BY BUNKERS ON 'FROZEN LOINS' NIAY REDUCE PRICES Credit Permitting Merchan -1 dise to Be Held in Storage for Speculation Will Be “Liquified” WASHINGTON, May 19.—Adop tion by American bankers of the recommendation of Governor Hard ii g of the Federal Reserve board "to liquify frozen loans,” was expected by the board to go far toward bring ing down prices. Governor Harding applied to the term “frozen loans” to credit exten sion which was upermitting large stocks of mechandfee to be held in storage, he indicated, could be pre vented by strict supervision of credit. Representative King, of Illinois, rencently charged in the house pres ent methods of financing were per mitting commodities to be kept off the market with resultant Increased prices. The Illinois representative said lie had been informed that in New York City alone more that 70,- 000,000 pounds of condensed and evaporated milk were being held in storage in comparison with slightly more than 8,000,000 pounds a year ago. Although legislation designed to drive foodstuffs from storage is now pending in congress, it was said to day that careful withdrawal of cred it from speculators in food products might accomplish more than statu tory regulation. It was emphasized, however, that discrimination be ex ercised by bankers, in asmuch as in many lines the summer months* see an accumulation of commodities for the following winter. Governor Harding, of the feder al reserve board, is of the opin ion that liquidation of . super fluous loans will go far to ward rectifying the present infla tion Expansion of banking credit, due to war requirements, he told the banker delegates at a conference yesterday, amounted ■to $11,000,000,- 000, while money in circulation had increased about $1,900,000,000 during the war period. The “slowing down of industrial effort,” indicated by decreased pro duction in important lines, repre sented the most unsatisfactory ele ment in the .country’s economical problem, Governor Harding said. The government’s efforts, he explain ed, would be toward a normal and healthy liquidation "without curtail ment' of essential industries, and, so far as possible, without disturbing legitimate commerce.” “It is evident,” Mr. Harding said, “that the country can not continue to advance prices and wages, to cur tail production, to expand credits and attempt to enrich itself by non productive operations and transac tions without fostering discontent and radicalism, and that such a course, if persisted in, will event ually bring on a real crisis.” , Reports before the conference by the federal advisory council direc tors of the Federal Reserve banks and a committee representing ‘ the American Bankers’ association were to the effect that inflation, has con tinued to some extent since the flotation of the Victory loan last May. This, Mr. Harding declared to be one of “the disquieting features” of the present situation. He asserted that the expansion, of bankers,, cred it, “properly attributable to the war,” was about $11,000,000,000 while money in actual circulation had in creased $1,900,000,000. ‘Credit ex pansion, even to the.extent, was not believed by Mr. Harding to be alarm ing or excessive “when viewed from the standpoint of war necessity” and when it was recalled that the govern ment placed $26,000,000,000 in Liber ty bonds in the same period. Mr. Harding deplored the falling off in production in practically all important lines. He said it '.con stituted a “very unsatisfactory ele ment” in the. national problem be cause it radicated a slowing- d'own of “industrial effort.” 5 CENTS A COPY. $1.50 A TEAR. 1.C.C.W10 ROADS DECISION ON TRAFFICCONTRDL Rail Officials Hurry to Wash ington to Confer Qars Are Being Moved to Re lieve Tie Up WASHINGTON, May 19.—Execu tives of the principal railroads are hurrying to Washington today to confer with members of the inter state commerce commission in con nection with the nation-wide traffic congestion which is blamed for high prices in many localities. The I. C. C. today or tomorrow is expected to reply to the petition of the executives asking it to assume authority to issue freight priority lists. Backed by state utility commis sions, shippers organizations and chambers of commerce, the commis sion now is making extended efforts to relieve the congestion. . Trains of empty grain and coai cars are being rushed across the country under spocail orders. At least 20,000 empty grain cars will be needed in the southwest June 15 to handle the beginning of the 1920 grain shipments. These cars are being billed straight through from hundreds of points in new England and the Atlantic coast states. From the west long trains of empty gondolas are being routed to the coal fields of Pennsylvania, Illi nois, Ohio and Indiana. This Is in tended to increase production of bituminous coal which during April dropped off between 2,000,100 and 3,- 000,000 tons a week. Reports on Congestion the interstate commerce commis sion now is getting detailed reports of the extent of the terminal con gestion from mayors of cities, state utility commissions and its own in spectors stationed in all big cities where important terminals are lo cated. John Barton Payne, secretary of the interior, is expected to sit in the railroad conferences in his new capacity as director general of the railroad administration. Mr. Payne succeeds Walker D. Hines, who re signed. Secretary McGinty of the I. C. C., today denied reports ' contained in stories published by New ork news papers that the commission has taken over control of operation ot' the railroads. A "On Saturday,” said Mr. McGinty. “The railroad executives petitioned the commission to take control of car service. ’ The commission has not yet made any decision on this peti tion. The commission will take the requested by the executives if the situation becomes more seri ous. “The commission now/ however, has assumed a large direction of car service.” Control of car service means con trol of the routing of cars and the al lotment of them to shippers. Under the law, railroads may not discriminate against any one class of freight to the exclusion of an other. Now, hovyever, owing to the car shortage, all the freight cannot be moved. But the railroads must accept for shipment any freight of fered no matter if automobiles or some other non-essential are to be carried ahead of food or fuel. Embargoes Suggested. When the roads Saturday put in their petition to the interstate com merce commission they asked the commission to give them authority to refuse non-essential freight where It would interfere with the carrying of food and coal and essential freight. Under the plan proposed by the executives, Ohe interstate car service and car distribution. It will not be government control as it was understood during the war when the government arranged all time tables and took care of financial op erations and improvements includ ing the purchasing of new equipment. In part the interstate commerce commission already has assumed di rection of car service. Yesterday, it announced that trains of empty cars were t>eing routed to the grain and coal centers. This was done bv the railroads presumably with the interstate commerce commission’s consent. Shippers, under the law, might bring action against the rail roads which refuse their shipments in order to send these empty cars to the grain districts. However, it is unlikely that shippers will protest because their protests would have to be filed with and decided by the interstate commerce commission. The interstate commerce commis sion, under the plan, also impose embargoes tb prevent movements of all but necessary freight. If the commission accepts the com, plete proposals of the executives it will mean government control of one branch of railroad operation, namely, commerce commission would issue priority orders by which the roads could refuse to handle all except food and fuel and other essential freight. Bankers Urge Speed Immdeiate movement cf piled up freight is necessary to reduce price levels and relieve the strain on the country’s credit system, bankers to day informed Chairman Clark, of the ccmmission. Increased freight rates immediately was the principal reme dy propose I to Mr. Clark. A committee of bankers who have been meeting with the federal re serve board week called on Mr. Clark and presented a resolution em bodying recommendations adopted at the bankers conference. The same resolutions were pre sented to the United States shipping board. The resolution declares: That the whole country is suffer ing from inflation of prices and credit, that this condition can be re lieved by moving great stores of commodities piled up at all impor tant shipping centers and that this can only be relieved through upbiuld in gos railroad credit, which “must (Continued on Pago 8, Column S)