The Seattle Star Newspaper, April 14, 1923, Page 1

ILL EXTRADITE SLAYER SUSPECT ~ WEATHER and asterly w Entered as Second Class Matter May 8 reatening ; Mod Temperature Last 24 Hours Maxin 7 1999, at the Vostoffice a) Seattic, Wash. under the Act of Congress Maron %, 1919, he Seattle Star Per Year, by Mall, 01.60 2ATTLE, WASH., SATURDAY, APRIL 14, 1928. * nnn ae PPP AAA DAA AA AAA AAA APRA RAPP LR PRL ALARA PRAM LAM AARP RPA RAPA RO TWO © ee f | t ri if iene INTS IN SEATTLE, BIG FIGURE IN | RIANGLE Trustee in Bankruptcy Important) Third Person in Affairs Growing Out | of Waterhouse-Kelleher Feud TTMIIS Is the sixth of a series of articles on the spectacular rise terest. ta the | and fall of Frank Waterhouse, written for The Star by Bob | Bermann, Howdy, folks! Be it ever so hunible, there's no place like a cabaret! to: Ol Crow kinda lost as it begins to look be ie ] v the previous articles of this series, attention has been 4 years will Sake ae paid chiefly to Frank Waterhouse and Daniel Kelleher, as| re OR Wen ATS the outstanding figures in a sensational personal feud which HAM scores 6 point, he give has resulted in a tangled skein of litigation and which has| the' divided business men of the community into two sharply defined factions. When one turns to the actual court actions, however, a} YE DIARY Apri 13) road how onether seribbler in thy daily prints, a a ; “ . tid quart a fiagon of rare ot sarsape- | 300-odd creditors, of which the Seattle National bank dering om the motability of life, the In-/one (and by no means the lar . the Hanover National of Seas oe ilar the nase? te: New York and the Continental & Commercial National of | aon wat of the tx! /Chicago having equally large or larger claims) and thus} " holds no brief for either Kelleher or Waterhouse. On the contrary, he seems to swat both of them with a rare degree of impartiality, occupying a rather unenvied position between the upper and the nether stones. z Nevertheless, he actually figures personally in more; | Waterhouse litigation than either Waterhouse or Kelleher, land a resume of the suits which he is bringing and has cknunee coeeolan jbrought, sums up the most important legal aspects of the| To ihe first person guessing the |°25e- name of this cour. | [Awsuits Run Up Into Hundreds of Thousands One of the most important of these suits is now pending before Superior Judge Calvin S. Hall—Laube’s action to re- This evening to a th, of third figure appears who must be given consideration. tow A Bib Bermann, the! jn . “ si scribe, And did meet Clare sharin, whe This is William T. Laube, trustee in bankruptcy. for Frank hata, A" peetty wemars nad net withoat, | Waterhouse & Co, : Mather Leribbice Ia'the dally prints, amd | Laube, of couse, is entirely neutral, He stands for the you want the right ones. date Is Seatch, has served in the coun- eit for more than|to have abstracted from company funds to pay personal | 12 ‘years and 4 losses incurred when, as bond indemnitor, he was compelled known by the) 4 %1 Aauario. | pukicaue ae ae etal, \to complete the construction of the steamer E! Aq "apes {This is a highly involved suit, which bids fair to bring out ees jall of the most unsavory details of the entire failure. | More than 400 members of the; Another suit, of equal importance, has yet to come to Seattle Bicycle club pauls Cmlexele club Uedaiea out '|trial. In this, Laube asks for $238,000 which Waterhouse What a pity to see all those boys |iS charged with having withdrawn from company funds in| and girls leaning over the bars—and |the form of “commissions,” the propriety of which is ques-} a \tioned by the trustee. | Juwige C. C Ditton rules that gal On the other hand, Laube has two suits pending against | tcoma@ should gttend your movies a the Seattle National and has already collected $10,000 for day. Well, wXat's a woman to dolthe other creditors on another. | whet Her husband 's playing rummy?) “he most important of these suits is an outgrowth of the Witlam Wallace Lieurance ts on|$500,000 action which Waterhouse brought against the | trial for selling stock in » device to|Seattle National as a result of the Vulcan [ron Works pur-| Shiract power frou the alr. lchase. This suit was transferred to the trustee, who, upon got thal owen trometer an? “"*|the advice of counsel and after an extensive investigation, | - ees 5 ‘amended it by eliminating the original fraud charges against the Seattle National and is asking for only $150,000 on a simple allegation of inventory shortage. IANK Sues to Collect $300,000 Mortgage The other suit against the Seattle National—which is he hediatet Go kd apie }similar to actions brought by Laube against the National | eae s City Bank and the Bank of California—is of a more or less There is this to be said in tavér|technical nature, regarding the question of whether the bank of sarseparilla—you can take it or/alone or all the creditors are entitled to certain pledges in| ee \the banik’s possession. Mayér Brown's views on the rait-| Another action, brought by Laube against the Interna- ‘way problem are undoubtedly sound —all sound. RADIO NOTE The new police radio broad- casting station, KFHR, operates on « 285-meter crime wave length. Excr since bacon’s been Sixty cents a pound, "I Been eatin’ rabbit ‘till Co.—both Waterhouse concerns—to recover capital stock in| hai Seatige Taxicab Co., which had been used to secure loans | ank Waterhouse & Co., was decided against the trustee. “Ford to Run In 1924."—~Hendline. | This is welcome news to a lot of |to drivers. Of the other suits pending, in which Laube does not figure | estas ‘as a principal, the most sensational, is the one recently filed YES, IF Se eee ae by the Continental & Commercial Trust & Savings bank of ‘Chicago, to foreclose a $800,000 mortgage on the Vulcan} \Iron Works. In this action, the bank alleges that Water-| |house sold some $224,000 worth of mortgaged property with- (Turn to Last Page, Column 3) ‘Honors Seem Even in Big Waterhouse Trial Hearing Fraught With Much Bitterness; Sensation Promised Next Week With the first week of its trial victory in persuading Judge Calvin| §. Hall to admit into evidence the| copies of two letters alleged to have} been written by Waterhoure, one to| ‘rank Hogan, his attorney in Wash. ington, D. C, and the other to Maj.| J. W. Douglas, now head of the} Metropolitan Bullding Co, but at that time a quartermaster officer. | An honest-to-gosh philanthro- pist (says Wilson W. Brine) Is a man who commits suicide and leaves a detailed report of same, including the last sensations, for the benefit of the newspapers. ee Another everyday heroine ts the wife who, when there are fresh peaches for dinner, does not remind her husband that peach stains won't come out. ee in their honeymoon THUY SATLIKETHIS But they very soon WALI b-e Lt-k-e th THY, CHAMPION “Thit Hugo Kelley ean tell more lies in five minutes than any other man T know. Ue enn tell more Hew in five minutes than anyone “wer in an hour.” — Tindall betore Kepubliean elub, oe over, honors were about even Satur- day in the suit which William T. Laube, as trustee in bankruptey for Frank Waterhouse & Co. Ja bring: ing to recover $200,000-odd, which | Waterhouse is alleged to have ab- stracted from company funds to pay | personal losses incurred in the con- struction of the steamer Aquario. In the Hugo Kelley referred to the man who operates the Rainier In both letters, the writer uses the! NRA Oar} Most of the polats which haye|Personal pronouns “I” and ‘me’ in 3 rate to the Bl Aquirlo deal ually been scorsd so far have |1elation 5 One thing the city council never | act red favor of the piaintift-—but} Which, according to counsel for s at talk will never | been rede ee aacvsetwaves tay yn | tle js offset by the fact that the is ff entire week hay been devoted to the presentation of the case against Waterhouse and he has not had a Laube, proves that Waterhouse con- sidered it a personal matter and not company business. The letters were admitted ouly aft. If you don't hear the Fort Scott, cover approximately $200,000, which Waterhouse is alleged | ' Martin (above), and Guy Bonnar, 40, who confessed Friday to Sholund, 2 accepting $800 from A. L, McKenzie, in return for promises to “fix” the fed- eral jury before which Mo- Kenzie and J. T. Stanton were on trial for alleged mia- use of the mails. Both Me- Kenzie and Stanton were acquitted, Photo of Shotund by Price & Ca Star Staff Photographers CAN'T PREVENT SUGAR SWINDLE Government Is Paralyzed, Offivials Say BY LAWRENCE MARTIN WASHINGTON, April every day. Government officials have of the operations of sugar They have a conspiracy bring the gam- evi- dence gamblers, law. They cannot blera under the law. That is the exact situation today, while sugar prices continue to climb, The trouble ix that tho existing law does not seem to cover such operations as the evidence in tho hands of government officials shows are being carried on. There is no doubt in officials’ minds of the guilt| of certain Individuals, But they cannot find what they call “a point of departure” in the law from which to begin a prosecution that will stick, This explains the reticence of officials, from President Harding down, on the executive's plans for relieving the American people from the sugar robbery, ‘The only plan there fs constitutes: 1, Continuing to gather records covering operations in sugar, In New| York today members of tho sugar] exchange were called on by fe investigators for their records. Continuing a search for eral somo | way to slap the law on them, Meantime, some of the facts in the government's possession may be giv- en publicity from time to time for two purposes—first, to lot the public know that the price increase is arti- ficial and not caused by any shortage or other natural ca and, second, to let the sugar profiteers know that 14.—The| Clara Skarin Starts Life Anew BY BOB BERMANN “TM going home now for the big sleep. & job and start life all over again.” Those were the words uttered by Clara Elizabeth Skarin| three months ago, a few minutes after a superior court jury had returned a verdict absolying her of blame for kill- ing her aged great-uncle, Ferdinand Hochbrunn. Then I'll get me Well—she's de good her promise. Friday night she celebrated the first quarterly “anniversary” of her acquittal at the Marginal Way Inn, a ively roadhouse on the edge of the city mits—< which she presides in the role of general factotum “Gee,” sho hed, “it seems that it just can't be y three months ago that it all happened. * * * I'm having a fine time here—working hard. but} I'm getting fat.” €.''9t. EIRD memories flashed thru my brain. I saw a frail, rather pathetic-looking gir under the merciless lash of the prosecutor's cro! tion. She cringed and wept—but she stuck to her stor “I shot him in defense of my honor, I shot him in— she reiterated over and over again, in monotonous per- sistence. Suddenly my reverie was disturbed. A swarthy Italian | Says eas IS words were drowned out Ries Lr Aeorttesses| Fy eves wee creynet oct br | Plot to Sway U.S. Jury BY STEVE Guy Bonnar, Thursday night tives and secret service agents on charges of attempting to bribe a federal jury, admitted his guilt before U. 8S. Commis- sioner A. C. Bowman shortly after 4 p.m. Friday. Martin Sholund, charged Jointly with Bennar, confessed before R. L. Darling, chief of the Seattle of- fice of the departaient of Justice Friday morning. Both men were arrested Thursday night in the act of accepting $800 from A. L. McKenzie, who was being tried on charge of using the malls to defraud. Bonnar and Sholund promixed to “fix’* the jury and no. cure an acquittal, or at least make A conviction impossible, In return for the money. Tho exact charge placed against tho men was that of attempting to bribe a jury, according to U. 8. Com- mh ner A.C. Bowman. Their bail wan set at $1,500 each. Bonnar was being held in the county jail, Sholund was released when he posted the reqi!red amount. | MeKenzie, together with J. T. Stanton, were on trial for alleged misuse of tho mails in promoting a gold-manufacturing deal. Bonnar is said to have approached MoKensie late Tuesday night and promised to | “hang*’ the jury in the case in re- ARNETT 40, arrested by clty detec. tional Stevedoring Co. and the Seattle Globe & Investment | overnment 's helpless to prevent) turn for $800. the sugar gouge which Is costing) the American people a huge sum| MeKenzle folgned approval to the proposition and promised to return later. In the meantime he informed his attorneys and they notified the |department of justice. Bonnar and |Sholund were shadowed and when McKenzie, who had been furnished th a roll of counterfeit bills by federal agents, handed tho money j over to tho pair, they wero arrested. McKenzie and Stanton were found linnocent of the federal charge by the jury late Friday evening. It later developed that neither Bonnar nor Sholund could have had any in- | fluence with any of the jurors, | cee | '“Air Gold” Scheme | Men Are Acquitted | A verdict of “not guilty” was re jturned by the jury in federal court | Friday night after five hours’ de- | Mberation in favor of A. L. McKenzle jand J. T. Stanton, charged by the government with using the mails to defraud. The two men were accused of promoting a gold-makirg scheme by encouraging the sale of stock thru the mails, | Valera Follower Taken Prisoner DUBLIN, April 14.—Austin Stack, follower of De Valera, was captured by Free State forces in the Tipperary hills today, a dispatch from Clonmel states, De Valera, fugitive leader of the Irish irregulars, apparently has es- Canes wtatior chance yet to make any affirmative |er a lengthy and spirited argument! the government knows what they aro;cape® tho dragnet, a rolinble dls. eine 2B erp itn cedicada ab eT between counsel, and their final ad-|doing and how they are doing it, |patch from Clonmel stated. ts matic 4 call totter in WEAK | However, the plaintiff rested Fri-|mission was a signal victory for| If {t is found impoasible to apply| Thousands of troops, arsisted by ieee were oo” | day, just before the hearing was ad-| Walter 1, Nossaman, a young attor-|existing laws and the present sttua-|airplanes, are said to have combed fourned tntil Monday, #0 tho defense | nay who hud not figuri ly in the trial hitherto. Partly counteracting thin loss, Waterhouse dealt a severe biow to fe prominent. ‘The ottier day the proofroom sub-| : ate p tituted communists for colyumists | Wil get tts opportunity next week, in our copy. Is it trying to get ua| ADI ETTERS tlon runs its course, with a conse- quent “clean up" of riilions for the profit-takers, the administration will wup) ? IMPORTANT. POINT ci ona ‘The most telling point that hay |vecn muda to date is the plaintitt's his opponents early in the trial, whon (Turn to Last Page, Column 3) consider the advisability of asking the next congress to tighten the con+ splracy laws, % |the regions of the Watertord moun. |tains since early Mriday attempting to capture tho former provident, A torrential rain, however, hinders ed their work, and it is belleved that Do Valera hay escaped in safety, waiter, white-coated and obsequious, was leaning over the | table, “What have we got?” he repeated the query. “Wine, beer and Bourbon but the wine~sh e in't 80 very good. The man who make It, you put it in @ barrel that he-have whisky in {t—the grapo, you kno hus kind of a queer odor. But it taste very good—you try It?” j O ahe Again my memory was playing tricks with me. The tawdry “night life” neene dissolved; the ribald laughter died down; even the b! —he jo it orchestra ceased to rend my eardrums—and once again I was back in court. The girl was still tn the picture—but no longer the central figure. bitter controversy was raging between attorneys for the state and the|* defense “My client is a Iady—even if counsel doesn't know it—and I insist | that she be treated as such—" one of them was saying. “My client is a lady—" by the raucous strain of a “Old pal, old gal, you've left me aN alo-oo-ne,” @ mulatto girl was thouting, trying to drown out the orchestra, "Old pal, old gal, I'm just @ rolling stone—" ‘The orchestra was doing ite best—but the singer was gaining. Even the trombone couldn't compete with that high note. The mulatto gazed soulfully at the cracked ceiling—but kept a weather eye on the tables, watching for dimes aud quarters tendered by appreciative steners. eee Memortos again. The girl was back on the stand. She was being subjected to a series of sardonic questions which, tf put under any other circumstances, certainly would haye been considered highly insulting. “I didn't, I didn’t, I didn’t,” she was snarling at her inqulsitor. “He was just a friend—nothing more—" 3 6) 36 An allen voice cut tn on her. I was back in the roadhouse again. Out In the hall a man was talk- ing over the phone. Judging by the style of his articulation, one would say that he was not an intimate friend of Andrew Volstead. “——- you ask her what she did with my watch,” he was insisting In thick tones. “I had it Jas’ night—an’ I ain't got it now. You ask her.” Sly grins were exchanged by the people at the tables. “Here's to the watch,” somebody shouted, draining a glass of whisky. Ne Tees joes the kaleidoscope kept turning. The counsel for the defense was addreswing the jury now. “This innocent girl,” he thundered, “this innocent girl was doing just what you'd want your sister—your daughter—to do—” There were tears in tho jurors’ eyes as they looked at the prisoner, was playing a tearful accompaniment to the speech. eee The crash of breaking glass !n the kitchen brought me to and I realized that someone was tapping me on the arm, “We've got to go,” a voice was repeating. “We've got to go. The party's getting rough. Remember, you have to get up early.” I climbed into my coat and started for the door. In passing I glanced Into the kitchen, where Clara was entertaining \: merry party, Glasses clinked and there was much -laughter; everyone was haying a fine time—but Clara tore herself away to say good-byv. “Come again,” she was saying. “It's beon funny—meeting tonight— hasn't it?" Cabinet Crisis Is Feared in Italy ROME, April 14.—A sensation was caused in political circles today, fol- lowing the practical repudiation of Premier Mussolini by the populist convention. Resolutions substantially ant!-Fas- clsti were adopted by the convention and Mussolini has taken such cog- nizance of the act that he has called a meeting of all populist. members of the cabinet for next Tuesday at the Quirinal palace. It is feared a cabinet crisis is im: minent. Fritzi Mann Case Will Go to Jury SAN DIEGO, Cal, April 14.—The case of Dr, Louis LL, Jacobs, captain in the public health service, charged Hit by Ball, Boy Dies After Game CENTRALIA, April 14.— Oscar Saulsberry, aged 13, died at his home here Friday night as the re- sult of being hit upca the head by a@ pitehed ball while at bat in a baseball game Friday afternoon. The ball. struck the lad behind the ear, but he made no complaint and “took his base.” Following the gana he lapsed into unconsclous- ness and died. with tho alleged murder of Fritz! Mann, dancer, will go to the jury on Monday. Chester C, Kempley, district attor- ney, closed the argument with a dramatic appeal for a verdict of guilty of murder Jast night. No session of court wag held to- day, Hot Dawg! Los Angele. Annexes Pacific Fleet The following “information” comes via “Dear Old Los” and thru the magnifying, orange-tinted spectacles of the “Dear Old Los” press agent: LOS ANGELES, Cal, April 14.—Los Angeles harbor will remain the operating base of the Pacific fleet, Admiral Hilary P, Jones, commander in chief of the United States fleet, decided today after an inspection tour of the local port. } “As I understand the plans of the Rodman board,” said the admiral, ‘ancisco and Puget Sound will merely bo the location of our two Js, Tho fleet will spend most of its time on the coast at Los Secs The following wos evolved after a second of sane reflection and the atudy of the geographical contour of the coast Nne adjacent to “Dear Old Los; LOS ANGELES, Cal, April 14.—Tourlsts hero this summer will be able to Inspect the giant Pacific fleet by traveling down to Loy Angeles harbor, A scant 26 miles from the heart of the cit Admiral Hilary P. Jones decided to retain Los Angeles harbor as the operating base of the fleet, altho the armada will spend much of its time [xt tho great oavy yards at Mare island und Bremerton, {INNOCENCE —A FIRST DEGREE KALEIDOSCOPE) (HARCE FILED. jaro of the “jazz” |i 4 | | | Who} route the INDEATH CASE | Formally Accused of Seattle Man’s Murder, Prisoner to Face Trial Charges of murder in the first degree have been filed against D. erson Corrigan, held in El Paso in connection with the killing of George Marsh, Seattle for-rent éar driver, on April 3. The charges were filed Friday in Tacoma, and Deputy Sheriff Fred Ew of Pierce county, will leave for Texas Saturday night to bring Corrigan back to face trial. Deputy Glenn Bar- ton, also of Pierce, is now in Olympia, getting extradition pa- pers from Gov. Louls F. Hart, Meantime, a simultaneous inves: tigation {s being made in three dif- ferent cities—in Seattle by Capt. of Detectives Charles Tennant; in Ta- coma by Chief Deputy John Piper, who fg in charge of the sheriff's of fice in the absence of Tom Des , and in El Paso by Capt. of Tom Armstrong. E CORRIGAN . TACOMA already de- facts—that a an's descrip. tion wa. ‘acoma in a cafo immedélately before the murder, In with « for-bire car driver, and that apparently the same man was talking to Marsh the night pre vious to this at his stand, in front of the Frye hotel. If Corrigan can be identified a8 this man, it would-break down story that he now tells of obtained Marsh’a car. which ‘ found in his possession, thru @ mail in California who bired him to drive it to Kansas City for him. ‘A Corrigan ran into the arms of the El Paso police when he passed a check for $2.40 at a gasoline filling” station, which proved bogus. When arrested he told the police that ‘he was Frank Marsh, son of George Marsh of the Milton apartments, Be tle. The address and name given - Corrigan are those of the mur dered man. SUSPECT CONTRADICTS HIMSELF IN STORIES When Corrigan was first arrested at El Paso, according to advices from the police there, he told the authorities he was Frank Marsh When shown a telegram stating George Marsh had been murdered, ~ he changed his story and said he was Corrigan, and that he resided in Mason City, Iowa. He sald a” nian he met in San Francisco had | given him $50 to drive the car to ~ City, and that he was en | when arrested. He was unable to give details of the meeting place where he was to deliver the car. He said this man had told him to travel under the uame of Marsh, Marsh was found lying at the side of the road near Ardena by a farmer on the morning of March 3. He had ~ been struck over the head with a — coupling pin and was unconscious, He died the same evening. His pockets had been rifled but the prowler overlooked $40 hidden in Marsh's shoe. FIVE SHOT IN BANDIT FIGHT DETROIT, Mich, April 14— Five men were seriously wounded in a gun fight between employes of the Charles B, Bohn Foundry company and bandits who failed in an attempt to rob the company payroll car containing $12,000 here ~ today. William Bohn, employment man- ager, was shot thru the neck and ~ seriously Injured. The other men wounded are Will- iam Weakley, assistant employment manager; Henry Sevarg and two unidentified bandits. According to police, the bandits drove up to the payroll car, about a block from the foundry, and ~ opened fire, The members of the ~ payroll car returned the fire, wounding two. of the bandits. Bohn was driving the payroll car and, when shot thru the neck, lost control and tho car dashed upon the curb, The bandits then drove away. LONDON RAID PLOT NIPPED LONDON, April 14.—-An extrem! plot to destroy London power sta: — tions, open prison gates, destroy Wa- — ter works and subways, was uncoy: — ered today in documents seized dur- ing a big Scotland, Yard raid, the Ivening News statés, Police offclals and one unnamed cabinet member were marked for death, it is said, The plot was discovered in cap. tured documents which were taken — during search of Numerous houses in the section populated by known Trish extremists, Two men were ar rested, company