St. Louis Post-Dispatch
May 19, 1927

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MAY 18, 1907. Cc Ad vertise in a HAS “ou want AGAIN: MONTH... Take Loox AT HIS Face ITS RED FRom UP OW THE NEAD > - fll BE A WRECK INSIDe of’, THe | CHASE (GAVE HIM. © ‘ INCHES patch—because Post-Dispatch “Wants” are read by persons to reach, MAin 111ll—ask for Betty, the expert ad-taker. the Post-Dis. Call i Quit? ST.LOUIS POST-DISPATCH The Only Evening Newspaper in St. Louis Withthe Associated Press News Service Stock, Bond SPORT FINAL and Curb Tables Complete a& ST. LOUIS, THURSDAY EVENING, MAY 19, 1927—48 PAGES: PRICE 2 CENTS OL. 79. NO. 254. Ff RAIN IN | AT PEORIA ‘eg $y ; > ie we | yor’s Son Drowned, Four Others Thought to Have Perished; Many Missing $1,500,000 Damage. CPUZZLE 1AVEastToR, G— “THE AVERAGE SO HAAS RETS WHIicH OPENS ULT IS, WHEAY OU EP TRYIMSG Bo2ZQOss A) GeT BO(SGUSTEN = DOOR- AABD , coo’ RE IN) THE 7 eel gry Is ISOLATED ~ BYTHE DOWNPOUR ‘Trains Stop Running, Wires 1 Down — Levee Breaks, 1 Flooding East Peoria 4 With Four Feet of Water. § } 4 — ly ignecial to the Post-Diswaten. “@ proria, Ul., May 19.—Walter * F BiBwetter, 29-year-old son of Mayor ‘suis Mueller, was drowned and four other persons are thought to have lost their lives, and property Biéamage estimated at $1.500,000 . was caused by a 5.5-inch rainfall which flooded this city and su- orbs in three hours yesterday aft- oon. “Peoria virtually was isolated un- today. No trains were entering leaving the city, highways were er water and telephone wires ere down). “The heaviest rain poured down £1:30 p. m. Within three hours ge precipitation, had reached 09.5 Wehes, a record here. | In. some residential districts ightre sewers failed to carry the water away, houses were engulfed baad occupants clung to the roofs. ‘Wthe business districts, store Msements held two and thtee feet water. unted for today and police Mere busy checking the list of the ng. Three hundred and fifty ’ ns are homeless. oc ah bad And bee ast Peoria Dike Gives Way. APPIER | Peoria, across the Illinois AND THINK oF ler from Peoria, was hit even YouR HEIRS. irder. A dike, weakened by the TEK Witt FK., ent high waters, collapsed un- pl. the heavy rainfall, and four Tem uP. Ret of water swept through East eoria's business section. ~ Walter Mueller, 29-year-old son — pot — a a — de vermnanem ae . . k into the building. They left in and were washed away by Marsh Creek, overflowing its inks near where it empties into Sections of the Sunday Post- me Illinois River. _Mueller’s body was recovered to- ty. When last seen alive he was ging to the roof of a building. *s held on to railroad tracks, higher ground, and was rescu2d ” MAGCIE- THE RAJAH HERE. Mually, He is seriously ill from IN INDIA HAS CAVEN MEA. ure, PRESENT-HE CERTAIN HAS A BIG, HEART- HE GAVE ME AN ELEPHAN Ae Hundreds of persons were driven their homes in the lowlands. € Illinois River, which was re- ing before the storm and stood Tes 00; eeseee - eeaeeee ourenery weegereee® eee eeere 18.4 feet, had risen a foot and Y stood at 19.5 feet. 2 Hail as Big as Hen’s Eggs. ‘Mail as large as hen’s eggs fell wing the storm. causing enor- S damage to greenhouses and miows. Tops of automobiles i € ripped. : At Pekin, 10 miles ¥ PS More than $50,000 . done by wind. us lines were tied up. Con- te bridges were washed out on € hard roads. Water covers ® Peoria~-Canton and the Peoria- In hard roads. south of damage ——— ere Storms General in Hlinois 4 and Indiana. the Associated Press. CHICAGO, 111, May 19.—A_ se- a Of severe spring storms lashed Wh Indiana and Mlinois late erday, Peoria, Ill.. and Indian- tis, Ind., were hardest hit. Th2 Was accompanied by a heavy f hail which broke thousands Windows. 4ghtning struck the Hartsburg. Community High School stun- four teachers and 50 pupils, ou another bolt hit the dome of lancock County Court House i Carthage, Til, doing consider- aun e damage, ne — hangars were demolish- ‘Aanute Flying Field, Ran- . ll; small buildings were 2 down and the main mess ee damaged. nt rsa in Illinois and In- ad Pe “fy one the. previous = thd Owa, The forecast for oe ) "q and tomorrow was for more * Killed in Plane He Built. ee MOLINE. lil., May 19.—Floyd Moline aviator, Was - —— Moline airport this om — When a plane which he = Ying and which he had built ashed to the ground. Utner. “Twenty or more persons were un- | | ‘tre River. TEN-FOOT WALL OF WATER, LOOSED BY BREAK IN DAM, ROLLS OVER IDAHO TOWNS Lake Seven Miles Long, Freed by Failure - Natural Dike, Drowns Seven in One Mountain Village. By the Associated Press. IDAHO FALLS, Idaho, May 19. —The wall of wgter released by the breaking of the Gros Ventre slide dam 150 miles northeast of here yesterday, which resulted in the loss of at least seven lives, flooded Theis, 22 miles north of here, this morning to a depth of 12 feet. A mass of driftwood and debris including the wreckage of rat¥®ch homes and farm buildings, was carried by the flood waters, wreck- ing bridges across the Gros Ven- The blocking of the stream at bridge heads is causing the water to spread out, thus re- ducing the probability of damage at first expected. The death list, resulting when the impounded water broke through the slide dam and inun- dated Kelly, a hamlet of 75 inhab- itants, four miles down stream, was placed at seven today. Continuing its race down the valley, the flood struck Wilson, 25 miles below Kelly, within two hours. Ranchers declared the tor- rent retained its crest of Marly 20 feet. The river soon was near- ly a mile and a half wide, but no lives were lost at Wilson as resi- dents had been warned. As the water rushed into the Snake River at its junction with the Gros Ventre near Wilson, warnings were issued to farmers for more than 100 mailes. As the torrent passed into Idaho it main- tained a head Of nearly ten feet. Checking of the missing is slow due to hampered telephone com- munication. The slide dam was created when Sheep Mountain shifted several feet in June, 1925, to send an avalanche of rocks, dirt and trees across the Gros Ventre River. The Sheep Mountain slide fol- lowed a series of earthquakes that caused considerable damage in northern Wyoming and Montana. The slide and avalanche created a dam nearly a half mile across and approximately 300 feet in height. This formed a lake about seven miles long, a mile in width and 250 feet in depth at some points. CLOUDY TONIGHT, TOMORROW, PROBABLY WITH SHOWERS THE TEMPERATURES. Oe ee 55 eg A ie ere ee a 56 2 Se “Sa eray tee i tc so 58 ee ee ek bs ee. i ee 7 - See 54 es ae « 1 ee Wa ois as coe i ge 6 Be a aa ee ae ) ye 3 Wd SE Sa eee. a CS *Indicates street reading. Yesterday's high. 82 (4 po. m.): low. 162, «9 Dp. -m.). | | | | | Official forecast | for St. Louis and vicinity: Cloudy tonight and to- morrow, probab- iy with showers and thunder- showers; slightly warmer tomor- ‘OW, Missouri: Clou- dy tonight and tomorrow, prob- ably with show- ers and thunder- showers; Wwarm- er in the north- est portion to- night and in the north and central WHO SAID GAS EXTRACTION WAS PAINLESS? portions tomor- row. Illinois: Mostly cloudy tonight and tomorrow. probably showers; not much change in temperature. Sunset, 7:10 p. m. Sunrise, (to- morrow), 4:44 a. m. Stage of the Mississippi, feet, a fall oc .1. or rt Fo ee eee el ee DRYS TO PLAN PRESIDENTIAL FIGHT IN WASHINGTON TODAY Anti-Saloon League Conference in Washington Will Map Out Op- position in Conventions. By the Associated Press. WASHINGTON, May 19.—Plans to oppose the candidacy for presi- dent of anyone known to be hostile to the prohibition law will be dis- cussed today at a conference of the Anti-Saloon League’s execu- tive committee. About twenty members of the committee, including Bishop Thom- as Nicholson, of Detroit, president of the league; Dr. F. Scott Mc- Bride, general sunerintendent; Dr. Howard Russell, founder and Aas- sistant general superintendent of the organization; Dr. Ernest H. Cherrington, superintendent of the World League Against Alcoholism, and Wayne B. Wheeler, general counsel of the Anti-Saloon League, are expected to participate in the discussions. The league already has coine out in opposition to Gov. Smith of New York and Ritchie of Mary- land, and Senator Reed, of Miss- ouri, as possible Democratic presi- dential’ candidates, and of . or. Nicholas Murray Butler, as a pos-~- sible contender of the Republi- can presidential nomination. JOHN COOLIDGE CALLED ‘BUTCH’ Classmates at Amherst College Teli Nickname in Year Book. he Associated Press. BY AMHERST. Mass., May 19.—The Amherst College junior year book. just out, discloses that John Cool- idge, son of the President, is known to his classmates as “Butch.” How the nickname originated is not told. Although young Coolidge himeelf is on the editorial board of the publication, his fellow editors dia not spare him in their thrusts of wit. They mentioned his “second- hand navy peajacket, evidently pur- chased with a due regard for Cool- idge economy”; “his perfect school- girl complexion,” and “his air of perfect boredom.” a Hit by Golf Ball, Regains Hearing. By the Associated Press. ERIE. Pa., May 19.—/. Wayr Haskel, a jeweler, hard of hearing for years, Was struck on the head while playing golf. When hs re- : | covered he could hear. BOY KILLED BY — ee eee *TRUCK AFTER BEING STRUCK BY AUTO of Unusual Accident in Alley Near Home at 3863 McRee Avenue. BS eo avenue, Hagan McRee Harry~D. old, of 35863 killed today an automobile ant heavy truck as he tried to cross Thirty-Ninth street, a few yards was whan run over by a north of McRee avenue. The bey, a seventh-grade pupil at St. Margaret’s Parochial School, was on his way at 8:15 a. m. to a bakery and had taken a short- eut through an alley behind his home. Witnesses said he was hit by a northbound runabout driven by Peter Friedlein, of 1907 South Seventh Boulevard, a special deliv- i atl, tt ee by a ball and knocked unconscious | ery postal carrier, which threw him under the wheels of a heavy truck of the Kroger Grocery & Baking Co., moving south. Friedlein and the truck driver, Ora Dean, of 211 South Taylor avenue, a former pugilist, were arrested. The fatality was the forty-fourth this year compared with a total of 60 in the same period of last year. Dies from Injuries Suffered When Auto Hit Bridge. William Felder died today at Missouri Baptist Sanitarium of in- juries suffered last kriday when an automobile in which he was rid- ing with three other men hit the side of a Florrisant Road bridge in was 42 Felder, a cement mixer, years old and lived at 3531 North Taylor avenue, His chest was crushed and his skull fractured. WOMAN DIES AFTER 32 HOURS Fluid Clot on Brain Had Paralyzed Nerves Controlling Her Breathing. By the Associated Press BIRMINGHAM, Ala., May After being kept alive for 32 hours by artificial respiration, Mrs, T. H. Fallow, 31 years old, died today. She became ill Tuesday night with what physicians diagnosed as a fluid clot on the brain whica }paralyzed nerves controlling respi- ration. “Light men alternated at work over her, depressing her chest in rhythm, forcing air into her lungs. Mrs. Fallow was in a semicon- scious state throughout her illness and was unable to take food. WISCONSIN HOUSE VOTES TO LEGALIZE HOME BREWING Passes “Bill of Rights” 56 to 34 to Permit Householders to Make 2.75 Pct. Beer. By the Associated Press. MADISON, Wis., May 19.—The lower house of the State Assembly today passed Assemblyman Dun- can’s “bill of rights for the home brewer” by a vote of 56 to 34. The bill would legalize the manufacture of beer of 2.75 19.— content by persons in their homes. Harry D. Hagan, 13, Victim | years | he was hit by | St. Louis County and turned over. | OF ARTIFICIAL BREATHING percent alcoholic. A4 KNOWN DEAD IN DYNAMITING UF ~ MICHIGAN SGHOOL Demented Farmer Appar- ently Killed Wife Before Setting of Explosive — Inquiry Begun. 3 CHILDREN FOUND IN DEBRIS UNHURT Sister Lays Madman’s Con- dition to Blow on Head Suffered in St Louis 16 Years Ago. By the Asscciated Press. BATH, Mich., May 19.—Thirty- seven children and seven adults at noon today were known to have been killed in the dynamiting of the Consolidated School here yes- terday by Andrew Kehoe, dement- ed farmer. At Lansing, Gov. Fred W. Green }issued a statewide appeal for con- tributions to-meet the debt on the school and to reconstruct the de- molished the building. Kehoe dynami.-cu the structure be- 'cause he blamed high school taxes | for the recent loss of his farm i'through foreclosure of a mortgage. {Kehoe, who was himself killed in | the eaplosion, was treasurer of the school district. The fate of Mrs. Andrew Kehoe was definitely established today when parts of her body were found in an outbuilding on the Kehoe farm, Before touching off the | dynainite et the school, Kehoe dy- | namited his home, barn and wagon ‘shed and the buildings were de- wirg of | stroyed subsequently by fire. | Kehoe Probabiy Killed Wife. | Indications weer that Kehoe had | killed his wife and thrown her ‘body into che outbuilding, for the | Skull was crushed. A light wagon ‘found near the Luilding is thought ‘to have betn used to transport the body. Articles of jewelry were piled on the wagon. | Mrs. Joseph Rose of Battle | Creek, one of three sisters of Mrs. | Kehoe, said that two severe acci- | dents which befell the: farmer ‘within recent years may have been iresponsible for his mental condi- tion. |} “About 15 or 16 years ago,” Mrs. : Rose said, ‘“‘Andrew fell while at- ‘tending an electrical school at St. | Louis. He was semi-conscious for ‘two months. From St. Louis he | went to Bath eight years ago and |located on the farm. While work- 'ing on some woodland on the farm, ihe was struck by,a falling tree, ‘suffering severe scalp wound.” | Tye death toll mounted to 43 I with the discovery of the woman’s | body and the death in a Lansing |hospiial of Cleo Clayton, 8 years old, one of the injured pupils. Miss Blanche Hart, 30, a teacher, also died today. With the issuance of Gov. Green’s proclamation Red Cross | workers arrived from Lansing and | St. John’s to map out a campaign 'of relief for families hardest hit by the disaster while other State agencies continued an investiga- tion into the possibility that Kehoe had assistance in the consumma- tion of his plot. ' Charles Lane, State Fire Mar- shal, was undecided whether Kehoe |alone could have arranged his wir- ‘ing and the placing of the 600 pounds of dynamite in the school ‘eellar. The Fire Marshal pointed to the fart that the wiring con- | nected with the dynamite was skil- |fully done, with soldered connec- 'tions, work that would have taken ‘one man a number of days to | complete, Dynamite in Coal Bin. Stephen Brice, a plumbing and heating contractor of Toledo re- ported finding a quantity of pyro- tol. a war salvage explosive dis- tributed to farmers by the Govern- ment, secreted in a niche above the coal bin in the basement of the schoo: here. In another part of the basement of the gas would force the vapor through a tube to a spark gap where it could have been exploded by pressing the button of an elec trical current. In the event of the failure of his dynamite plant, investigators be- lieve, Kehoe planned to set off the gasoline and burn the building. Today was to have been the date for the annual school picnic, but placing of funeral wreaths on the doors of village homes took the place of preparation of picnic lunches, Miss Bernice Sterling, first-grade teacher, recalled telephoning Ke- hoe early yesterday concerning ar- rangement for the use of a grove on the Kehoe farm for the festivi- ties. | ‘When are ithe picnic?” 0 tn going to have teacher quote? vou the Continacé on Page 3, Colama 2 State police found a gasoline cvn- | tainer, so fitted that the expansion | Medical INCOMES IN U. S. INCREASED BILLION DOLLARS IN 1926 Total $78,649,000,000 as | Compared With $77,313,- 000,000 in 1925. By the Associated Press. NEW YORK, May 19.—Total in- a come in the United States among | caer sa cooee| OMAN AD SHOT HUSBAND IS FREED BY JURY ing year, the National Industrial Conference Board reports. If the value of all goods and Mrs. Hazel Bailey Acquitted on Belief the Killing Was Accidental, the Foreman services. produced in the country last year had been evenly divided, every man, woman and child would have received $671.43, the report Says. DE PINEDO FORCED DOWN BUT SOON TAKES AIR AGAIN Italian Flyer Stops En Route F rom Quebec to Shippigan Island. By the Associated Press. RIMOUSKI, Quebec, May 19.— Says. bec to Shippigan Island for half an hour, because of low visibility, Commander Francesco de Pinedo, Italian aviator, again rose in his seaplane to continue the flight he began earlier in the day. During the time his plane was at rest in the harbor, the fog which had ob- scured vision, lifted. By the Associated Press. FATHER POINT, Que., May 19. —Commander Francesco de Pine- do, Italian aviator, alighted in Ri- mousik Harbor, about 170 miles husband, Clarence a teamster, in a quarrel at their home, 3663 Mar- ket street, on Dec. 6, was acquitted by a jury in Circuit Judge Pearcy’s court this afternoon. The verdict was returned shortly after four o'clock, after the jury had deliberated an hour and 15 minutes. Members of the jury said they took three ballots and finally from Quebec, this afternoon,)agreed that Mrs. Bailey had killed while attempting to fly from Que-/ her husband with a shotgun fired bec to Shippigan Island, New; | bantatte P Brunswick. asian rts ek Mrs. Bailey is 25 years old and PAROLE FOR EX-60V, M’CRAY her husband was 28. N AUGUST IS RECOMMENDED While Mrs. Bailey was charged ‘With second-degree murder, the Former Indiana Executive Went to/ Judge, over the objection of Prison in May, 1924, for Mis- defense counsel, Lwrence Me- use of Mails. Weeesha’ ar é vi, av € s “Ule WASHINGTON tes 16.~-Th(°!™ OO oe tions also for a possible man- Federal Parole Board has recom- mended that Warren T. McCray, former governor of Indiana, sen- tenced to the Atlanta penitentiary for 10 years, be paroled in August. Attorney General Sargent said he had received the recommenda- tion and would take it under im- slaughter verdict, because the plea of accident, as raised by Mrs. Bai- ley, is an element of manslaughter rather than murder. The State rested its case largely on the testimony of Everett Mc- Millan an 1l-vear-old cousin of ae . After halting his flight from Que- - | Mrs. Hazel Bailey, who killed her | —— oe ee ACQUITTED | | . fa is Se - ve a » x & $ ” % % % * % oe P os “ ee - vy " < wv 23 DOP DAQSS —By a Post-Dispaich Staff Photographer. MRS. HAZEL BAILEY. LCC. FORBIDS — PROPOSED LORE Bailey, who saw the shooting and described the. marital which preceded it. Mrs. Bailey testified tearfully, in defense, de- claring the shooting was an acci- mediate consideration. McCray was convicted in In- dianapolis April 29, 1924, of using the mails in furtherance of a scheme to defraud. He was sentenced to ; . | dent. serve 10 years in the Federa! peni- obras Everett, whose home is in St. tentiary at Atlanta, Ga. He re Clair, Mo., but who resides with signed as Governor and was dressed in at the prison on May 2. McCray, who began as a book- keeper in a country bank, rose to wealth and prominence as a bank- er, cattle raiser and egrain dealer. He was indicted on several counts, all generally alleging that he had diverted State money in loans to bolster his own private enterprises. When the crash came, he turned over all his property to his credi- tors. Bailey's parents, Mr. and Mrs. Al- fred Bailey of 1136 Talmage ave- nue, while attending school, went to the home of the Clarence Bail- eys with them when they returned from a hunting trip on Dec. 5. The next day, he testified, Bailey came home late for supper. Boy Describes Tragedy. He describéd what happened in substance as follows: “Where in hell have you been?” Mrs. Bailey asked. Her husband MARILYN MILLER PICKFORD -| nia tnt ‘ne tea ne en WILL SEEK DIVORCE IN PARIS 'boss home, and she declared he Should have been in his own home, Husband, Admitting Trial Separa- | fixing a stove pipe. She kicked tion Failed, Will Go to France him. He kicked back. She gota to Speed Decrec. razor and backed him against a By the Associated Press. wall, saying: “Damn you, don’t LOS ANGELES, Cal., May 19.—/you dare hit me again.” Bailey Marilyn Miller, musical comedy took the razor away from pre — star, and her husband, Jack Pick- oe sie hap ssc tog ford, motion picture actor, will seek a divorce in Paris early in June, Clarence Jr., 6 months. She got a shotgun and he took Pickford admitted here late last night. it away, then sat at the table with the baby on Ais lap. Examining Iie disclosed the fact that his wife, now in Chicago, would sail the gun, she asked her husband, for France shortly.. He said he “How in hell do you open this?” He told ‘her to give it to Everett would follow her abroad a short to hand to him. as it wasn’t time later and a fParis tribunal leaded. and “even if it was, you would be petitioned for a divorce] .oyiqn’t pull the trigger.” Just quarrel! | RAIL MERGER M-K.-T - Cotton Belt and Kansas Held to Be ‘‘Not in the Public Interest.” City Southern | U. R. ASKS 8 PER CENT RETURN ON $4,000,000. GAIN INLAND VALUE LLUSTRATES HOW COST NEW THEORY AIDS CORPORATION Company’s Realty, Some of It Bought Cheaply, Now Worth $7,512,218 Eleven Experts Testify. MADE BASIS FOR HIGH VALUATION Presentation of Evidence in Hearing at Jefferson City on an 8-Cent Fare Con- tinues. By a Staff Oorrespondent of the Post-Dispatch. . JEFFERSON CITY, May 19. — An iiluminating example of the re- production cost new theory of val- uation which public utilities are trying to force upon the public is found in the item of land to which today’s hearing in the United Rail- ways application to the Public Service Commission for a $100,000,- 000 valuation and a straight 8-cent carfare is devoted. The company is asserting that the market value of its land today is $7,512,218, and the figure ap- pears approximately correct since the company produced 11 St. Louis real estate men to agree upon that sum. In 1919, the . Commission found the market value of approx- imately the same land (few addt- tions having Deen made since) to have been $3,262,470. The differ- ence between that figure and the one now presented or about $4,000,- 000 represents increase of market value since 1919. Two Theories Contrasted. The effect upon the public is found in the fact that the company is seeking to earn an 8 per cent By the Associated Prese. on the grounds of incompatibility. Both will appear at the proceed- then, while it appeared to Everett that Mrs. Bailey was still trying to ings, he said, so that Miss Miller open the weapon, it was dis- will not be forced to establish a | charged, without having been residence in France. Pickford said lraised to her shoulder. Cross-ex- his swife would be represented in fener eath Everett said Mrs. Bailey ow Brlerges ag wd — cried and prayed immediately aft- Dicken’ admitted, “in order . to | 2000: Samitted Se ae niet —— avoid a divorce, but we finally de- {| the case with Baliey'® mom”: cided we were temperamentally un- Officer Te'ls of Finding wed F suited for one another and decided Sergeant Edwar to quit.” JAPANESE DOCTOR ISOLATES | GERM CAUSING TRACHOMA Association Gives Dr. | Noguchi Ovation for Research Detective Schaff testified he had found Bal- ley’s body in the kitchen of the three-room cottage, a few minutes after the shooting, and the shot- gun, with one empty and one load- ed shell, in the middle room. pcm ré of disorder. “I shot | ef pas wusband” he sald Mra Batley |e Oe ee told him. adding the explanation to| WASHINGTON, Mey 29/-tene- | the detéctive that Bailey had come ton Of the germ Walch causes | home late for supper, and surly. trachoma, the eye disease, has been “Eat what you want, and what | announced to the American Medi- | veia Gantt. give to the dog.” she | cal Association by Dr. Hideyo | a octared her husband remarked, | Noguchi, Japanese member of the after refusing to fix the stove pipe. | Rockefeller Institute for Medical Schaff said she told him how. —— Bailey sat down holding the baby | Delegates to the association's and asked for the shotgun, which | convention gave Dr. Noguchi a long he rsserted was not loaded. On ovation following the announces | --oss.examination, Schaff said he | ment and Dr. Hubert Work. the/¢,.nq Mrs. Bailey hysterical, and | Association's president, said “if We | ,4geq that she said she took the | have found the cause, we will find) pa75r from her husband after he| the treatment.” threatened her with it. Trachoma is a granular inflam- Bailey's parents gave the con- mation of the conjunctiva, the! aiding testimony for the State, mucous membrane which lines the | saying they had seen the shotgun | inger surface of the eyelids and 18/4: their house when their son re- | ' i WASHINGTON, May 19.—Pro- | posed control of the Missouri-Kan- sas-Texas Railroad by the Kansas City Southern, and the St. Louis & Southwestern (Cotton Belt) by the Missouri-Kansas-Texas, was de- clared by the Interstate Commerce Commission today to be not in the public int@érest, and authority to carry out the transaction was de- nied. This is known Merger. Whole Scheme Frowned On. The merger proposal was ad- vanced by L. F-Loree, of the Dela- ware and Hudson railroad, and both the financing plan and the trans- portation effects were looked up- on unfavorably by the commission. The Kansas City Southern, by the proposal would come into control of railroads larger than itself, the commission said, and the result would be unsound from the public viewpoint. as the Lorree “If one carrier is to control an- other there should be a reasonable | and proper proportion between them,” the com mission said. “There is something ‘incongruous in the control by oné carrier of another having more than three times its mileage and more than twice its resources, and when there is added indirect control of a third carrier, also larger than the con- trolling corporation, the incongru- ity and lack of proportion are ac- centuated. “We cannot look with favor upon | such control, especially when ef-; fected largely by the use of the} credit of the controlled carrier and | when the pre-existing obligations | of the controlling carrier are such as to suggest the impropriety of It» assuming additional financial bur- dens.”’ Four Commissioners Dissent. “If a sound transportation arency is to be created by a com- bination of the three lines herein considered it would seem that the | largest carrier, the Missouri-Kan- | sas-Texas, instead of the smallest | should be made the center of the system. “But even if the Kansas City Southern were financially able to acquire and maintain control of | the Missourt-Kansas-Texas and through the latter, of the Cotton Belt, the control of properties largely by such a relatively small amount of capital is not in the public interest.” Public opinion in the territory through which the railroads op- | erate is divided, the commission | mr i reflected over the forepart of the ‘ eyeball, eis Continned on Fuge 3, Colama 7. ! eee Aes es Continued on Page 3, Colamna $. ~ te — | allowance return on the later, higher value. But, in contrast with such a method of reckoning, if the pru- dent investment theory of valua- tion enunciated by United States Supreme Court Justice Brandeis— that a utility should be entitled to earn only upon the sum it invested in service of the public, were ap- plied in the United Railways ease, the value of land would be nearer $1,000,000 than the $7,512,218, ‘which the company is asserting. Most of the United Railways property was bought by it or its predecessor companics more than 25 years ago and since then its market price has tripled or quad- rupled. One of the notable exam- ples is the site of car barns at Delmar and De Baliviere avenues, which was bought many ycars ago. Today land in that vicinity is sell- ing at from five to ten temes what it brought in the day when the gite was first devoted to caf barns. Exhibits put in by the battery of real estate appraisers gave the land used for operating purposes a mar- ket value of $5,720,218 last Jan. 1, and the non-operating land a values ‘of $1,792,300. The operating land included additions of $276,672 since the 1919 valuation. Non-operating land acquired since 1919 was negii- gible, it was said. The commission's 1919 valuation of $3,262,470 cov- ered both operating and non-oper- ating land. Points Stressed by Company. The net Increase in values claim- ed by the company since 1919, exclusive of tracts acquired since that time, is $3,973,000. In ita contention that the valuation of the property is approximately $100,000,000 on the basis of re- production new less depreciation and “at least $75,.000.000" consid- ering all valuation theories, the company is relying chiefly on ef- forts to persuade the commission to give greater weight to repro- duction, land value claims and the for intangibles, The company has adopted as the base for its physical property ¢ca.- culations virtually all of the com- mission's base findingsdor physical property in the 1919 valuation of $51,781,000. The company’s own exhibits on index numbers, show- ing relative prices, disclose only @ slight increase in prices for Jan. 1, 1927. as compared with January 1919. The company adopted as a base, prices of Jan. 1, 1920, when 4 sharp increase in equipment ani material prices started. From it the January index ..umber ts fixed iat 89.07 and the December, 1996, index number at $3.73. So far the company's case has Continacd on Pege 2, Column 3. — ee i | ) : ' ) : AT 6 A ge * Spee pee fe Oe a