The Seattle Star Newspaper, April 12, 1923, Page 1

| SHlP AFIRE RACES TO PORT! em RAR AAR AR AAA PDA PPA PPP PPP PPD PPP WEATHER | west winds. Temperature Last 24 Hours Maximum, 57, Today: pure Ertored as Se 8; Pid moderate Minimum, noon, 53, pd Claes Matter May 8, 1899, at the Postoffice ar Seattle, Wash, ur der the Act of Congress Merch 3, 1 £79, Yer Year, by Mall, $3.60 he Seattle Star VOL, 25. NO. SEA’ TITLE, W ASH,, THUR SDAY, APR IL 12 , 1923. * HONE Tl TWO CENTS IN SEATILLE, Vulcan Deal Drags Waterhouse to Rui ees Banker for Wrecking Him Howdy, folks! Are you follow. ing the Waterhouse trial? Yep, the lawyers are still winning. Frank Wa ‘house refused to an- zextions yesterday, probably fearing that the opposing attorneys might force him to admit that he| had bough sian rubles. It's a divit s but you'd never know it from listening to the law. yers LI'L GER GE®, TH’ OFFICE VAMP, SEZ: . Th game of love is never called on account of darkness, galloping dd run. thi Li consumption means 1 Gee Gee thinks eat Believe it or no! of the Detroit police KOP. all number radio station is . Here lies the body of Alonzo Michael Blue; He told his wife how many Chorus girls he knew. oe. One thing about being honest Is that you will never be bothered by mauch. competition. oe SPECIAL OFFER Remember, with ewery copy of Home Brew you get, as a special premium, a complete copy of The Seattle Star. A Seattle man ts accused of non- support. He took his wife's wash botler to play in 2 jazz orchestra and now she can’t make a iiv e: o3 Lipsticks and marcelles, Powder and paint. She looks like a beauty, but Mebbe she ain't. ras All men are created equal, and en- titled to life, liberty and the pursuit of the dollar. One thing & certain, you can't have a lot of those little woolly dogs | and have 4 lot of other towels in the house. ECHO ANSWERS She—'Fess up, now, that you men like talkative women as well as you like others. He—What others? oe There was a tutor who tooted the flute, He tried to tutor two tooters to toot; Said the two to the tutor, “Is it harder to toot Or to tutor two tooters to toot?” see Coed—What makes the Tower of| Pisa lean? Ed—It was built during a famine. | HE WONDERS Housewlfe—How do you sell that choeset Grocer—I often wonder, my- self, ma‘am. . The time has come when many wonder why nature didn’t put more meat on spareribs and backbone. 63638 There are vig cars, little cars— The list ia very long, Some are worth a million bucks, While others cost @ song. But when I get a car I'll get what SUE adored; Vt buy a Wg Rolle Royec— (You thought U'd say a Pord,) How unfortunate that the only men who know how to handle the world problems should waste their time in villages whittling good boxes, | ee When a man has an operation he gets thru with (t and forgets it. When a woman has one she never lets anyone forget it. soe All the world may loser, him, love a good if it hasn't made any bets on KERRECT! “How is the milkmaid?” Ue said with how, “It isn't made, sir, Tt comes trons a enw." oes A long hair on a mane much more difficult to explain than three dinner engagernonts, There once was a maiden of Biam Who sald to her lover, young Kiam, “11 you Mss me, of courte, You'll have io uae force, Bul Ill wager you're atro dam,” nyer than vont ja! GROWS OUT OF ALLEGATIONS! ev eatled Gancen | in ae Cover Up Sharp etics HIS is the fourth of a series of articles on the sensational rise and fall of Frank Waterhouse. Tomorrow's installment will tell of the continuation of the feud between Daniel Kelleher and Waterhouse, which grew out of the failure of the latter's company. | | | BY BOB BERMANN has already been related, years for Frank Waterhouse & Co, Almost as soon as | the armistice was signed, the firm’s star began to wane. This, | however, was the common fate of practically all business con- cerns during this périod—and, if the losses had been due en- tirely to the gene post-war depression, it would have had no difficulty in sustaining them. Fifty thousand dollars a year would probably cover every penny that was lost by the shipping department of the con- |its profits in millions, was negligible. But Waterhouse had branched out to such an extent that there was no hope of recouping. In addition to the “side- lines” already mentioned—the orchards, the taxi company, |the ship-building, the automobile business, the insurance ‘agencies, the terminals plan, the Vulcan Iron Works and the | rest—Waterhouse had numerous other interests—the Seattle Globe & Investment Co.; the International Stevedoring Co.; his dock and warehouse business, and so on. | And in practically all of these ventures he was losing money | | 1917 and 1918 were the big} cern—and $50,000, to a company that had been reckoning | |—not in proportion to his normal losses in shipping, but on a) monumental scale. ULCAN Purchase Breaks the Camel’s Back Daniel Kelleher, Chairman. Of The Board Tha Seattle National Bank, Dominant | Figure In The 3ank For Savings And Otherwise A Vital Factor In The Financial World, Who Appears As One Of The Bitter Feud Now Raging Between - And Frank Him Waterhouse. |Attorney | attorney | their TO SAVE SUGAR SWINDLE Zinstein’s \4 IRISH H REBEL PROBE STARTING ZheoryOkeh CHIEFS CAUGHT Prove| The Vulcan Manufacturing Co. deal was the most disas- | Evidence to Prove Price! | trous of all. It wasn’t the straw that broke the camel’s back |—but the whole bale. Its initial cost was $575,000, which created an enormous |drain upon the Waterhouse Co.’s working capital at a time when cish was at a premium, and, in addition, hundreds of | thousands of dollars were poured into it in the way of im- | provements and maintenance. } Only a company like the Standard Oil could | such a gigantic series of losses—and even the § | go under eventually. |” Waterhouse made desperate efforts to keep the ship afloat. | Nearly $1,000,000 in easily negotiable government securities | went to secure a huge bond issue. He borrowed as much as |he could from local banks, then went to Chicago and New York to borrow hundreds of thousands more. Banks Loaned Money Freely, Willingly Possibly the most amazing feature of these transactions was the fact that the banks all seemed more than willing to make these advances. Hindsight is better than foresight, and it’s easy now to say that Waterhouse should have scen the inevitable ruin of his company. But the fact remains that some of the shrewdest bankers in the country investigated his’affairs at this time— then kept: on extending credit. However, such a state of affairs couldn’t continue indefi- nitely. And, finally, on January 13, 1922, application was made for the appointment Of a receiver. Clark Bissett, pro- fessor of law at the University of Washington and a warm friend of Waterhouse’s, was named to take over the com- pany’s affairs. At this time, the Waterhouse Co. contended that it was en- tirely solvent, but that its assets were of such a character that it could not liquidate them to satisfy the creditor banks. This explanation was generally accepted and, as a rnatter of fact, the receivership did not cause any great stir in the busi- | ness world at the moment, | A few weeks later, however, an action to force the company | into involuntary bankruptcy was brought—and the public got its first inkling of the feud between Waterhouse and Daniel |Kelleher, for many years Waterhouse’s personal adviser. SAVAGE Charges and Counter Charges Are Made Friends of Waterhouse charged that Kelleher was deliber- ately attempting to wreck the company and discredit Water- house—in an effort to conceal allegedly sharp practice in the! sale of the Vulcan Iron Works by the bank. It was alleged that the bank had been buying up claims against Waterhouse} simply to be able to force the company into bankruptcy— claims which are declared now to be werth not more than 5) or 10 cents on the dollar. Kelleher’s friends, on the other hand, accused Waterhouse} of wrecking his own company by taking out huge sums in cash at a time when every penny was vitally needed. | Whatever the facts, it undoubtedly was a failure by this | time, and the company was thrown into bankruptey, with W, T. Laube, Seattle attorney, appointed as trustee, | Since that time, just about a year ago, all of the affairs of | | the company have been ‘involved in an almost unbelievable | ye withstood i} andard would | |mey General A. T. Seymour, | York, today | ble for the boosts, SUCAR IS UP! | Price Advances 25 Cents a| lamount of scandal. aryes and counter charges have been he fy Page 9, Column 2 Conspiracy Submitted WASHINGTON, April 12.— dence tending to prove a conap! of sugar gamblerg responsibl the recent boost of sugar was to be laid before A of Federal District whose office by torney Hayward, ered the data Seymour left “here inte last night] after 4 conference with President Harding, in which the department of justice investigation of the my tery behind the sugar rise was thor-| oly canvassed ‘The prob for nearl have reached crete evidence, legal action age which haw bee month, ts point where ¢ warranting drastic | st thone responst- is in the hands} a of the department URGE BOYCOTT Hundred Friday “Boycott sugar. Don't buy unlens it Is absolutely necessary. If you| must buy sugar buy only in small] amounts.” | That's the advice of the Seattle) Retail Grocers’ association Thursday | following the announcement that sugar prices in Srattle will be boosted | an additional cents a hundred} pounds Friday morning. | peculatora have got control of} the sugar market mn this country) and iin only way that the public ean Turn to Fuge 9, Column 5) Continuous Dance Record Is Broken} CLEVELAND, 0. April The | new record for continuous dancing was set ot 52 hours and 11 minutes | by Miss Helene Mayer here today | Miss Mayer walked off the floor} rt 140 p.m, Sho had been dancing | Jeince 9:45 a, m, Tue Tila exceeds by nine minutes the former by Alma Cummings in Ne which wa hours, two miiutes, Death Sentence for “Syndicate Member” CLARKSBURG, W, Va, Ann 12 | The death sentence today waa} passed on Phil Connizarro, necond | of 11 alle lenders In the West Virginia crime syndicate to be sen tenced to hang for complicity In the murder of Yrank Naples, vin Star | Astronomers Light Deflection SAN JOSE The Einstein theory has withstood homical test made . April 12 of relat the rigorous and mat) of it several me ago by the expedition to Australia and Tahit!, Dr. W. W. Campbell, chief of Li va of the fornia, University nounced today A series of ph taken at Wallal T lia, during the solar eclipse. of September 21, 19 and a simi lar series taken early in Tahiti by night, aave been compared results favor the accur- of the Binstein theory, Dr. Campbell said, raphic p Austra plates were secured to vie were com roups of stars in the of the sun a to show t einit pared © displacement of thelr rays in passing thru the sun's gravitational field De psteln, according to Dr. Campbell's announcement, pre dicted that if his theory was cor- rect this deflection would be thru one and three-quarters seconds of an are caloulations sh made from wa defibe: seconds of five sets of plates tion a ‘aging 1 an are “The agreement Is as close as the most ardent proponent of the theory could hope for,” de clared Dr. Campbell. He ald the results Isfactory thet hi will not repeat the are so sat observatory observation SACRAMENTO, April 12- A. Terr , of Seattle, who wa mortally Jujuved near here recently in an auto accident in whieh his wife waa killed, died yesterday in a Sacra- mento hospital, He was a retired hotel man On Beasties: Goot TODA Ys OPPORTUNITY From day to day many things take place and many sacrifices have to be made, ‘These, unusual epportunities continually appear Want Ad Columns 2 BARGAIN by Seattle Bank MAPLE VALLEY Inod to make a yperty, It in lox town of Landaburg, noar Maple Valley, Covered with virgin timber, and the #oll in extra good, There ia an old coal mine on the property, which could be devel: oped, Fronts on good county The timber ty yaluabl be loggel eanily ard hauled to Le Washington by trek, ete, ote, ete There rerty are more details to this pre in the Want Ad Pages today, Turn to them NOW, ——— Report Prominent Quartet Taken by Free State LONDON, Marclewle April 12—The Countess Count Plunkett, Miss MacSwiney and Liam Lynch's broth- er—four of the most prominent re- maining rebels—were captured by Fr ate troops in Tipperary, ac- ng to an Exchange Telegraph | dispatch from Clonmel, via Dublin. eee LONDON, Ap 12. of the “captu of | Valera by Free Stat jmel, Ireland, ye |unexplained today. Dublin dis- | patches safd national columns still | were searching the mountains for the “phantom president” and Dan Breen, his liextenant. But many corre- | spondents openly hint that De Valera was taken and Iater set. free. | ‘The Manchester Guardian's Dublin correspondent sts that version; others recall that the British cap- tured De V once, but turned him loose as soon as they discovered his} | identity, preferring to have him a | rebel'at large rather than a prisoner. | The Free State government makes |no statentent beyond the announce- that tho former president of republic” hals not been captured. JAP LAND LAW TEST STARTS SAN FRANCISCO, April 12,—Test of the lease clause in the California Janti-alien land law will be made be- | fore the United States supreme court at Washington Monday. | Attorney General U. 8. Webb was en route to Washington today to de- fend the validity of the clause w ich | prevents persons not eligtble to citi. | genship leasing land in the state or! holding land thru stock ownership in land owning corporations, Attorney Louis Marshall, of Now ‘York, will represent Japanese andj other interests seeking to have the | clause declared uncenstitutional, |Harvey Will ‘Came Back for Campaign | | WASHINGTON, April 12.—George |Harvey, American ambassador to |Great Britain, wil! come home this| |month to manage the administra. | | tion's campaign for American en- | trance into the international court of | the league of nations, | President Harding and Ambassador | Harvey together will map out and co- ordinate all administration activities in support of this policy, which ts closer to Harding's heart than any other major policy of his administra- tion at this time, Whether Harvey will return to his |iondon post will depend ex what | happens after he gets here, Ho may lromain to direct the Harding 1924 aiapalge + Eamonn do| troops at Clon. | erday, remained jm | the “1 {for jand fi _ WAVE CHARGES, CONCEDES BIG POINT IN SUIT Admi That Shipping) Man Dominated! n yj | His Company stise. tee just as do} he had gained! in the trial of his “El| ult before Judge Calvin 8.) ghly After a long and highly which morning se: 5 1 involved up much of Waterhouse’s admission that} had always been the} ro in Frank Water nd that the trustees majority, 1 far oclated wit member others 8 conaldere jons| Laube, trustee in| for Waterhouse & Co,,| bring th is th: the man wh y controlled the destinies ly expende bankrupte who is suit improp |CONCEDES POINT TIME Clarence I Waterhouse, exp made the admission simply to keep | the trial from stretching out for} weeks, The point came up in argu- } ments over the admissibility as evi- dence of minute books, showing the transfer of funds from Frank Waterhouse & Co, to the Seattle Globe & Investment Co., which has Deen described as Waterhousa's per- sonal holding company, When John} B. Hart, chiet counsel for Laube, attempted to introduce these books, Reames protested that weeks would be required to refute the evidence, y, in order to avoid this, (Turn to me 9, Column 1) DENIES GRIME Reames, chief counsel ned that he Chief Says” Department Is Working Efficiently Charges that a “spirit of lethargy exists in the police department, and that crimes have greatly increased since the first of the year, as com- red with the same period of 1922,” j Were branded as “falso and mall. y Chief of Police Severyns Severyns replied to published ar- ticles to the effect that’ little inter-} est was manifested by the police in| running down criminals, with a broadside of official figures. “Thirty-six more petty robberies have occurred,” Severyns admitted, “Last year, up to the first of April, 502 burglaries were reported, This year, the same period, 638 have been reported. Apparently those 36 robberies are the basis of the at- tacks. “During the first three months of last y Seattle had 66 holdups. This year we have had 38, or about half those of iast year. And hold. ups are the worst of the two.” Severyns quoted his records, show: ing that up to April 10, 1922, 19 persons were killed in auto acel- }dents. The vigilance of the poilce and improved traffic conditions have reduced the number of vic is to seven in the same period this year. ere is no so-called ‘crime and the police are more effi: t now than they ever were," 8 deciared, 11; WATERHOUSE STEAMER IS REPORTED IN FLAME PERIL | ‘Fuji Maru Speeds to San Pedro Harbor, Says Radio Message , April 12.—Radio- uring the night reporting the Japanese steamer Fuji Maru afire near San Pedro and LOS ANGE grams were received here | racing to port in an effort to reach sufety before the fire forced aivan- donment of the ship. The fire was described as in the forward hold and the meager mes: sages indicated it was beyond con- trol. ihr vessel was scheduled to reach ‘an Pedro today. SCHOONER IS FAST ASHORE by her officers and m, Wednesday, the Lewis, which was chena point, om , was being ground the rocks Thursday ndoned t 8 p. schooner Robert 1 near Vancouver isl to wrecke n crew of the Seattle aboard the steam A 40-mile is still blowing at Pachena poi int Fendt is feared the sel will be broken up com- pletely. The wreck of the Robert Lewis was the third sea accident Wednea- aay in Northwest waters, The ex: German ner Susquehanna ran aground near the mouth of the Columbia river early Wedni morning and was refidated at 3 4. m. the same day. She continucd on her way to San Francisco and South America. The tug Sea Monarch In attempt. ing to get a tow line aboard the Robert Lewis, Wednesday noon, fouled herself in the line and was blown ashore near the scene. schooner arrived a. m. Thursday at 7 tug Humatonna. © of the wreck of the schooner. Her] upper works and radio equipment were damaged, but she | was to proceed to Seattle under her power. No one was injured in thé |day’s accidents. JAP IS KILLED IN GUN BATTL Own Weapon Ends Life of Notorious Character Killed in a gun battle $n front of the Tokyo club, 612 Maynard st. Ky Iwashita, 30, Japanese gunman, and fifth victim of Japanese shooting frays in two days, was dead Tht day, while the authoriti+s were tempting to decide what charge t place against M, Murakami, 37, cons fessed slayer of Iwashita, Muray kami is held in the city jail, together with M. Endo, 47, who killed his wife ” and three children Tuesday nigh! Following the shooting of Twashi Prosecuting Attorney Malcolm Dougs. 4 las, Deputy Prosecutor John D. Cars | mody, Coroner W. H. Corson and his: chief deput, Koepfli, cons ferred with Captain of Detectives: Charles Tennant Thursday relative: to the fate of the two slayers, MURAKAMI CLAIMS SELF-DEFENSE It is believed that Endo, who ia | held in a padded cell at the city jail to prevent an attempt at suicide, will” be charged with first degree mu der, Murakami, bowever, claims ha - shot in self-defense 2nd may be @ (tum to Page % Column 4) Strong-Western Novel Opens in Today’s Star HE sagebrush-covered areas of northern Nevada — are the locale of The offering, “Whispering Sage, and Joseph Noel, beginning Star’s latest serial fiction — .” by Harry Sinclair Drago © today. The battle between the cattle baron and the home- la steader for the open lands transform the desert into and the water needed to productive territory is as t old as the Western frontier itself. It has bobbed up continually in, shootings, extensive court litigation, ing the most bitter the S in pitched battles and in” It has caused feuds rival- > |> jouth has ever known, It has played an important part in many a political cam- paign. Thi the basis West's Passion Play is w exciting action is galloping the situation Drago sind Noel have used as ~ for “Whispering Sage.” Their story. of the ten in colorful vein, and the all of the time. Romanee, heroism, philosophy, excitement, senoritas and every- thing else that goes to make a thrilling Western story are here, Turn to page 11 and give yourself a treat.