Georgia Historic Newspapers

    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)
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AT HOME
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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
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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.”
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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
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