New York Herald from New York, New York • 7

THE SUN, SATURDAY, 'AUGUST 2, 1919. HELD IN BIG RAILROAD THEFTS of Lines Total 000,000 a Year, Say U. S. Prosecutors. LAXITY MADE PLAN EASY Brokers Juggled Returns on Sale of Damaged Freight, Is Charge.

Capt. Solomon Shuldinger. U. S. and Gerome S.

Dumont, two young men who started in the importing and exporting business in a small way in Jersey City In 1914 and progressed rapidly until their company occupied the building at 139 Maiden lane, were defendants yesterday in the Federal District Court 1 in Indictments charging conspiracy to defraud the United States. They are accused of having used what appears to have been lax methods on the part of railroad systems in disposing of damaged freight to embezzle $100,000 from the Government as the administrator of the Central Railroad of New Jersey. The Long Island Railroad Company and the Central Vermont Railway Company are alleged to have been defrauded of smaller sums. Capt. Shuldinger and Dumont dealt in goods damaged in transit through the Linited States Brokerage and Trading Company, a corporation named with them in the indictment.

All railroads have thrown 'hands valuable The stocks railroads which send consignees these refused. goods to accept. kers, who sell them on a 10 per cent. commission basis. The charge against the United States Brokerage Company and its owners is that they made a practice of reporting the sale of goods at a lower figure than actually received.

The roads are alleged to have accepted their reports on ales without question, Countrywide Thefts Suspected. Benjamin P. De Witt, Assistant United States Attorney, wno caused the indictments be found, said that an investigation covering the whole country had been begun into suspected thefts on damaged freight. He believed roads have been mulcted of $50.000.000 a year from a period long antedating their seizure by the Government, Mr. De Witt deciared that the Erie Rallroad in 1918 had claims for 000 filed against it by shippers.

The railroad realized oniy $400,000 on sales of rejected freight in this period, he said. Capt. Shuldinger and Dumont when arraigned before Judge Rufus E. Foster pleaded not guilty. Bail of $25,000 each was fixed and given.

Mr. De Witt explained that the case would be moved for trial in October. He predicted more prosecutions. He said the Government hopes to stop such practices before the roads are returned to their owners. indictments were found June 30, but held sealed because Capt.

ShuldInger and Dumont have other -important business connections which would have been harmed by unanticipated publicity. Dumont is managing partner in ani Importing and exporting company that does business under the style of George Mogensen at 50 Broad street. Capt. Shuldinger is interested in- a number of companies. He received his army comin May, 1918, and was stationed mostly in Washington until the armistice.

The other defendants in one of the three indictments were not arraigned. They were Charles E. Johnson and Robert Lowrie, clerks in the freight claim agent's office of the Jersey Central Railroad. They are alleged to have accepted bribes to approve fraudulent reports on sales of damaged goods. It is assumed that they will become Government witnesses.

The indictments charge that the consptracy dates from January 1, 1918, approximately the time at which the Government took over the railroads. The books of the United States Brokerage Company were seized in March. The accusations are based on figures obtained from these books. In the case of the Central Railroad of New Jersey it is alleged that the brokerage company's books show thefts of $100,000 between June, 1917, and March, 1919. In the case of the Vermont Central $1,425 is alleged to have been stolen between February 18, 1918, and May 13, 1919.

The Long Island Railroad is said to have been mulcted of $997 between January, 1918, and January, 1919. The Jersey Central indictment charges that when freight had been rejected by consignees and had been held for sixty days it was within the authority of Johnson and Lowrie to cause it to be sent to the United States Brokerage Company for sale. The freight sent to the brokerage company varied in quantty from carload lots to single cases. Specific Case Is Set Forth. Among the allegations is one that on May 24, 1918, a the brokerage company received a carload of miscellaneous freight from the Jersey Central.

It sold merchandise for $1,680.83. Of this, after deducting commission and cartage charges, $1,463.08 belonged to the Government. It is charged that Shuldinger and Dumont reported the sale have been at $470.21, and that Johnson and Lowrle accepted the money and approved the report. It is charged that ten sacks of sugar were sold for $100, of which $5 was returned the Government in full payment. It is charged that 128 sacks of coffee were sold to George Mogensen for only $1,227.38.

$1,904.84, of, which the Government got Mr. De Witt said that it was the understanding that Johnson and, Lowrie were to receive one-half of all the illegal profits. He said they got a drawing account of $100 a week with the brokerage company. Their railroad salaries were $125 a month. Arrangements with the Long Island Railroad and the Vermont Central for the sale of their damaged freight, according to Mr.

De Witt, were made according to the usual practices between railroads and brokers. Schuldinger and Dumont dealt with responsible officials and had no friends in the offices. Nevertheless, proof of fraudulent withholding of money from these roads is alleged to have been found. A. L.

Boyd, an investigator of the Interstate Commerce Commission, is said to have noticed what appeared to be irregularities in the books of the claim department of the Jersey Central and questioned Johnson and Lowrie. They are said to have broken down and to have given the information that resulted in the investigation. Philip Doherty, of counsel for the Administration, was placed in charge of an inquiry that quickly veloped leads that have taken Government officials to many parts of the country, Mr. Doherty has cooperated with Mr. De Witt in the investigation here.

Defence of Accused Men. William C. Fitte, formerly Assistant States Attorney-General. and, counsel for the Government In the beer litigation in this district, represented Shuldinger and Dumont in He gave out the following statement in defence of his clients: "The Indictments against Mr. Dumont and Capt.

Shuldinger are entirely dieconnected with the large and flourishing exporting business of Morgensen Co. They relate exclusively to a controversy between the Railroad Administration small business conducted by Capt. Shuldinger under the name of the United States Brokerage Company, which was organized by Mr. Dumont long ago, a and with which he has had no active connection since the large corporation Morgensen has abCapt. serving sorbed his alitention, except that while army during the recent war Mr.

Dumont seems to have attended to some details in a perfunctory way. "The transactions complained of all occurred relatively recently and during the period in which Mr. Dumont was not only not conducting the brokerage business, but was drawing absolutely nothing from it. "Furthermore, when the claim of the Mr. Railroad Dumont's Administration attention was March brought of tho to present year, he immediately made a large deposit of cash with Government to indemnify the Administration against any loss which attach because of any possible irregularities indulged by the brokerage company in handling unclaimed freight for the railroads, so that there is no pending or future liability which can come upon him either confuse or financially embarrass the Arm of Morgensen which he is now conducting as managing partner." Shuldinger and Dumont are 1 unmarried.

They live together at West Eighty-fifth street. The indictments describe them as officers and agents of the United States Brokerage and Trading Company. THREE CENT ZONE RATE FOR JERSEY Utilities Board Acts on Plea of Cities That This Charge Is Sufficient. Passengers on every trolley line of the Public Service Railway Company, which operates in about 150 municipalities in thirteen of the twenty-one counties of New Jersey, will have to pay their fares by mile after September 14. A charge of 8 cents will be made for the first mile and 2 cents additional for every mile or part of a mile thereafter.

No transfers will be issued. Authority to put the new fare system into effect was granted to the company yesterday by the New Jersey Board of Public Utility Commissioners. The decision, which was tentative, was made on the company's application for the zone fare system of charges for an indefinite time. The board reserved the right to make adjustments in the system if it found it advisable. The board's decision was made necessary because of President Thomas N.

McCarter's declaration that immediate financial relief was needed if the company was to continue to serve at its present efficiency after September 14, and also to furnish a practical demonstration of the zone Some of the points of the board's decision are: Three cents for a ride within a zone mile in which the passenger boards a zone car. Two cents for a ride in each additional zone mile or part thereof traversed on the same car. No transfers will be given or sold. The new rate ordered by the commission repeals all other rates. Children under the age of 7 years, when accompanied by an adult paying fare, shall be carried free.

School tickets shall be issued at the same rates and under the same conditions as now issued. Where superimposed service is now in operation it shall be continued so as to avoid the necessity of riders passing from one car to another. This means that cars running over other lines than their own during rush hours to accommodate workerg will be continued. Continuation tickets are to be retained in use wherever now effective. On the Fast Line running between Newark and Trenton passengers will pay the zone fare when riding over the tracks or the Public Service Company and the present rate of fare on the private right of way of the Public Service Railroad Company.

The zone fare will be paid on Fast Line trolleys from the terminal in Newark to Bayway, Elizabeth. From that point to Bonhamtown, Middlesex county, the present rate will remain. The zone fare will again be in effect from Bonhamtown through New Brunswick Milltown and from the latter place to the outskirts of Trenton the present rate will apply. is a possibility of the necessity for the adjustment of the transfer points and heavy loading points," reads the decision. "The board reserves the right without formal order, from time to time as these adjustments become necessary, to require such adjustments of transfer points and heavy loading points as to make them coincident with the zone limits." Referring to its selection of the 3 cent first mile rate in perference to either of the other two before it, the board's decision says: "The trial of one of the proposed plans with such modification as at present appears to us to be necessary will be helpful in the final determination of the feas.

ibility of the plan to be adopted or of any other plan growing out thereof. It thus becomes a matter for the board to determine which of the proposed zone schedules it should adopt. "The board is impressed with the contention of the municipalities that a 3 cent charge for the initial mile is sufficient. Their criticism of the proposed charge (the company's plea for a 5 cent, Initial charge) for the first zone mile has much merit. "It is to the public interest that riding be encouraged rather than discouraged, because the loss of each rider must necessarily increase the charge to the other patrons of the company.

The establishment of a lower base charge will undoubtedly tend to increase riding on the care of the company, Increasing the riding habit will have the tendency to ultimately decrease fares." Steps have already been taken by the Public Service Company for the installation of the zone fare system Within a month temporary apparatus needed to operate under the new fare collecting mehtod will be available. Signs showing the zone number every mile along each of the company's lines are ordered. The permanent equipment needed will cost, thousands of dollars and will not be ready for some time. Bellevue Hospital Ship Is Sunk, The Bellevue Hospital ship Huddleston, used for river outings of convalescent women and children, was rammed and sunk at her pier, Corlears street and East River, early yesterday by a tug of the Brooklyn Eastern Terminal Company. The tug was swept in upon her by a strong ebb tide and smashed a hole six feet square in her hull at the water line.

The Huddleston was moored in shallow water and can be raised without great diffloulty, it was said. No one was aboard except a watehman. SHEETS SNATCHED. BY YONKERS SPOOK Ghost Moans, Groans, Rattles Windows and Skilfully Eludes Police. RAMBLES AT MIDNIGHT Victim Shivers With Terror, Then Shakes From Cold as Bed Is Robbed.

The folks who live in the four story apartment house in 436 Walnut street, Yonkers, are all really nice people and don't drink a drop of anything that Mr. Anderson wouldn't like, which is a fact of importance in view of what has happened. It seems that there are ghosts in this apartment house, although it may only be one ghost, but, at any rate, It is a spooky being who rattles windows, groans and moans and even so far as to pull the sheets off its shrinking victims. The Yonkers police force, out what it is any more than the which doesn't drink either, can't find tenents can, The first of the non-drinking' police of Yonkeps heard of the ghost was when James Zest, who lived on the top floor of the apartment house, although he has now gone away from there and won't be back until the ghost has gone, came to detective Lieutenant 'Dennis Cooper and gave him the low down on the ghost. It seers the night before, at midnight exactly, the sheet had been snatched from his bed by an invisible hand.

He couldn't find anybody in the room, either. But he lay down again without the sheet, and pretty soon there came a tapping on the window. and then Zest looked and saw a white shape pressed against the window pane. It was at that exact moment that he decided to go at once to police headquarters and tell the cops about it. Lieut.

Cooper sent Detectives Ciliberti and a MacCormick to rout the ghost Thursday night. They stood in the hallway and at midnight heard the groans and tappings. They promptly decided they could be of more use outside, so they went across the street and stood in the shadow of a building. They saw nothing and since they did not go again into the house they heard nothing further. Zest didn't hear anything or 806 anything that night either.

He didn't sleep there. Joseph Schwartz, who owns the apartment house, told the police that at first he didn't take any stock in the tales of his tenants, but one night he went and had a look for himself. "I heard things," said Mr. Schwartz. "and I saw things too.

I don't know what it is, but there is Mrs. Josephine Burhell, who has lived In the house for many years, told the police that a woman and daughter were burned to death there some years ago. Whether the mother and child are haunting the scene of their demise the police do not know, but they are keeping a sharp lookout for kids who think It's smart to "tick-tack" people's houses. And if they catch a ghost instead, so much the better. TORTURE WOMAN; GET $25,000 GEMS Burglars Hold Lighted Matches at Feet of Mrs.

C. P. Beck Near Atlantic City. ATLANTIC CITY, Aug. masked burglars entered the summer home of Mr.

and Mrs. Charles P. Beck at Somers Point, eight miles from here, early today. After vainly torturing Mrs. Beck in an effort to make her disclose the hiding place of her jewels they knocked her unconscious with a blackjack and tied the couple to their beds with picture cord and torn sheets.

After ransacking the house the thieves discovered $25,000 worth of jewelry and $1,000 in cash hidden in a bag in a closet. They 09- caped with all of it. Beck retired from the hotel business in Philadelphia a year ago and he and his wife have been spending the summer at the shore. Both are advanced in years, Last night Mrs. Beck went to a motion picture show wearing diamond earrings, pearl necklace and diamond rings, all of which were included in the plunder taken a few hours later.

Shortly after 1 o'clock this morning, Mrs. Beck was awakened by a man who was bending over her bed and peering into her face. She sat up with a scream and he seized her roughly, demanding to know where she kept her jewels. Mrs. Beck refused to tell, despite the threats of one of the four to kill her.

When she persisted in her refusal, the burglars held her securely while one of them lighted matches with which he burned her feet. Perhaps to quiet her cries she was struck on the head with a blackjack. Beck, who slept in an adjoining room, was awakened by his wife's screams and came hurrying out into the hall to be confronted by a masked man with a revolver. Beck and his wife were quickly bound to the bed and the four began a systematic search of the house. Draw.

ers were emptied of their contents and clothing from closets tossed in a heap on the floor. At length the bag containing the jewels and money wad brought to light. A wet towel had been thrown over Mrs. Beck's head and, just as the four were overhauling' the jewels, she recovered consciousness and pleaded with the burglars not to take a pair of opera glasses, set with pearls, which she told them was a treasured heirloom. They eft the glasses behind, as she asked them, but before they left the man and woman were blindfolded.

The robbery was committed during the height of a storm. The Beck cottage is 200 feet away from the nearest house and no one discovered that anything was amiss there for half an hour after the burglars had escaped. They came and went in an automobile. The thieves closed all the windows and blinds in the house before going up stairs. Their trance was made through the front door which had been left partly open because of a defective lock.

PIGEONS FOR FISHING FLEET. Will Report Georges Banks Catches at Boston Piers. BOBTON, Aug. which new with army messages during the war are to be used to maintain a service of communication between fishing smacks on Georges Banks and the Boston Ash pier. In this manner skippers would be able to report their catches before they reach the market.

The birds which will act as couriers for the fishermen were obtained recently from the army, and are now being trained by James P. Murphy of New Bedford, formerly of the pigeon section, Signal Corps. BURGLARS ON WET PARADISE Forget Job in Hand to Revel in Burzetta's Wine. Frank Burzetta, who maintains a private wine cellar in the basement of a rooming house at 500 Grand street, was distressed last night on passing' by the open doorway to smell a strong odor that seemed to indicate one of the kegs had burst and was giving its contents freely He upon plunged the arid speedily cellar down' floor. Fine steps to investigate and found his fears verifled.

Half a dozen wine cases had been broken open and bottles cracked and half emptied were holding lonely orgy. Burzetta made quick tracks to the nearest police station. The police went over the cellar and adjoining premises and evolved the conclusion that a gang of burglars had been at work some time within the last two days trying to dig through the wall of Burzetta's wine cellar to the offices of Louis Telch Sons on the ground floor of the building. A hole had been partially' cut through the lath and plaster and a kit of burglar's tools was The officers decided that the Intruders had fallen vietim to the wine engaged in their more ambitious task and had given up the attempt, staggering away at length, smashing bottles they were no longer able to compass. $40,000 SILK LOOT PASSES WATCHERS Burglars in Newest West Side Cloth Robbery Seem to Have Been Invisible.

With watchmen to right of them, watchmen to left of them, watchmen in front of them and a policeman patroling the beat, gangsters smashed their way into the Victory Waist Company of the fourth floor of the building at 16 West Nineteenth street early Wednesday morning and stole a mass of silks estimated in value at $40,000. The burglary was said yesterday by business men in the neighborhood to be part of a campaign of terror and intimidation which thugs have been launching at silk and cloth houses. Although fearing to make a public statement lest they be marked as victims for gang vengeance, certain merchants stated frankly that hard looking characters had visited their places recently and forced upon them tickets to alleged balls in which they were in no degree interested. Understanding perfectly that this ticket sale was the means employed by the silk burglars of collecting tribute, and having little confidence in the ability of the police to protect them should they refuse, most of these merchants have made. a general practice of buying the tickets, for which they had no earthly use.

News of the robbery of the Victory Waist concern did not leak out until yesterday because of efforts on the part of the police to keep it secret. It was learned, however, that the thugs had worked with deliberation. They had jimmied open a metal door leading from a stairway to the floor on which the concern is situated. Then finding the private door to the Victory establishment difficult to open in the usual way they forced it off its hinges. Inside the place they worked with care and skill, selecting the plunder that best suited them, and wrapping it into bundles.

Just how they got the goods away is not known, but it is believed that the plunder was carted away from the front door in an automobile, as is customary nowadays. Anyway it went out of the front door, because there 1s no. other exit through which it could have passed, but neither the watchman in front of 2 West Nineteenth street on one side of the place, the watchman at the side door of the Greenhut Building on the other side, nor a private watchman across the street, nor the patrolman on the post saw anything of it. STOCK BROKER KILLS HIMSELF. Frank L.

Martin Cuts Throat In French Hospital. Frank L. Martin, 54, a stock broker of Plainfeld. N. was found dead In his private room in the French Memorial Hospital yesterday with his throat cut, an open razor in his right hand.

He was operated on July 22 for glandular trouble and apparently was convalescing satisfactorily. Thursday night he asked the nurses not to disturb him, as he was going to take a long sleep. Ernest E. Bohn, 40, of Mount Vernon, was found dead, suspended from a chandeller in a rooming house at 203. West Thirty-eighth street, where he had been I employed.

VISITORS FLOCK TO SPRINGS. White Sulphur Reports. Record for One Day's Arrivals. THE SuN. Special Despatch to WHITE SULPHUR SPRINGS, W.

Aug. from the north and south brought more than 130 persons here to-day, making the largest number of arrivals in one day this summer. Among those from New York are Mr. and Mrs. Edward Livingston Burrill and Edward Burrill, Mrs.

Benjamin C. Porter, Mrs. Frank Spencer, Witherbee, Mra Henry Olleshelmer party, Mr. and Mrs. James H.

and Miss Stella Benedict. Mrs. William H. Randle, Miss Ethel A. Byrd, Mrs.

Isaac W. Kemple and Mrs. William G. Colling of Philadelphia have come for the summer. Mr.

and Mrs. Walter Harvey Close of New York entertained twenty-five friends at the Greenbrier last evening in honor of Mra. William Willett MOUNTAIN RESORTS CROWDED. Hotels and Cottages Filled With Summer Colonists. Special 1 Despatch to THE SON, BRETTON WOODS, N.

Aug. great influx of August visitors into the White Mountains has filled the large hotels, and cottages. The annual lawn tennis tournament at the Iron Mounfain House, Jackson, will begin on Monday, and the tennis ball will be held at the Casino on Friday evening. Mrs. John R.

Morron of New York, who is at her country home in Littleton, has given a complete athletic and playground equipment to Remich Park in Littleton for the use of the children of the town. Mr. and Mrs. Walton H. Marshall of the Hotel Vanderbilt, New York, accompanied by Mrs.

Walter Close, will arrive at the Mount Pleasant on Monday. Bakers Arrive at Narragansett. Spscial Despatch to THE SuN. NARRAGANSETT PIER, R. Aug.

Mr. and Mrs. Raymond Baker have arrived from their country place in Lenox. Mr. and Mrs.

Francis H. MeAdoo, Donald Dodge of New York, Thomas Page of New York and F. C. McCormack of Baltimore also are here. Mrs.

John H. Hanan has cancelled the bride's ball she was to have given at the Casino on August 15, owing to bereavement in her husband's family, She left with her son, Talbot Hanan, for New London to-day, 'FEDERAL RAILROAD BOARD IS OUTLINED John Martin Tells House of Plan Following Return of Lines to Owners. WILL REPLACE THE I. C. C.

Object Is to Guarantee Income and Then Fix Rates to Meet It. Special Despatch to THE SoN, WASHINGTON, Aug. of the Interstate Commerce Commission by a Federal railroad control system that would regulate transportation matters much the same as the Federal reserve system controls financial matters wag advocated before the House Interstate and Foreign Commerce Committee to-day by John Martin of New York a8 the plan of the Railway Investors League for operation or the lines after they are returned to their owners. Other points of the league plan were: No Government ownership in any form. A return of per cent.

on the property investment of the roads guaranteed by the Government. Provision for giving any increased return between and 6 per cent. all to the railroads and' dividing any earnings above 6 per cent. equally between the roads and the Government. Fixing of rates to allow for the amount of the guarantee at least.

Guaranteeing of returns would enable the railroads to obtain the large amount of credit and additional capital it now needs at a low figure. Regional Boards Planned. Mr. Martin explained that under the league's plan regional boards would be established under the Federal board just as is done in the Federal reserve system through the branch banks. The Federal board would be composed of five men and each of the local boards the same number, with provision that the organization "What is we to be would non, have under the league plan," he explained, "is a Federal railroad board sitting at Washing ton a and six regional boards sitting in their respective districts, each of them in closest touch with the transportation business and so able with Intelligence and despatch dispose of the problems that would arise in their districts and present to the Federal board at Washington such problems as they found able to handle." Mr.

Martin said he was opposed to establishing a secretary of transportation in the Cabinet because the whole railroad problem would then be continuously in politics. No Rate Guarantee. "Regarding rates," he continued, "Instead of attempting to guarantee freight rates which will produce a certain amount of income on the property invested it would be much more reasonable at the outset to guarantee that income on the property and then go ahead and fix rates which would allow earnings at least to the amount of the guarantee. I believe guaranteeing of the per cent. return is necessary to establish confidence in th financial world that confiscatory measures will not endunger their investments and thus the roads can obtain the additional credit and capital they need." One of the greatest needs of the railroads now is more terminal facilities, Mr.

Martin said, or better delivery systems in the large cities. The shipping facilities of New York could be increased 40 per cent. by efficient drayage systems, he said. "'The average truck is only about 30 per cent. loaded on a one way trip and 20 per cent.

on a two trip," Mr. Martin said. DEMOCRATS NAME SLATE. Nassau County Meeting Selects Cuff for District Attorney. The Democratic committee of Nassau county named Thomas J.

Cuff, a former Assistant United States District Attorney, to run' against District Attorney Weeks at a meeting in Mineola last night. Nell H. Vandewater, the attorney who acted for the Nassau County Association in raiding the fashionable gambling resort at Lynbrook last Sunday morning, was strongly favored in the discussion, but when the ballot was taken he received only one vote. The other nominations for the primaries were Franklin C. Hill of Merrick, for Sheriff: Robert Dibble of Valley Stream, County Clerk: William J.

Hotmann of Massapequa, County Treasurer: Franklin P. Taylor of Hempstead, County Comptroller, and Dr. Mabel Scott Weed of Garden City, for Superintendent of the Poor. Dr. Weed was the official Red Cross physician during the influenza epidemic.

PRESENT LEAGUE FEARED. Rhode Island Folk Do Not Approve of Form, Governor Says, PROVIDENCE, Aug: people of Rhode Island "approve a League of Nations, but not a surrender of our sOVereign rights," Gov. Beeckman said today in a letter to United States Senator Lebaron B. Colt. "It is my own personal opinion," the letter said, "and the opinion of the people of the State that a League of Nations is generally approved but there is an overwhelming opposition to and terrible fear of the League of Nations as contained in the proposed treaty.

"It seems unbelievable that we are in danger of joining in a covenant with other nations whereby the other nations will decide for us whether we make war upon a people with whom we have no grievance. Also political questions which are purely domestic policies of this country must remain in our full control, such as immigration, tariff and the Mon- roe WHITLOCK POSTPONES TRIP. Decides to Accompany King Albert to United States in October. By the Associated Press. BRUSSELS, Aug.

Whitlock, American Minister to Belgium, who was to have started to-morrow for a two months' vacation in the United States, has postponed his trip. Instead he will accompany King Albert and Queen Elizabeth of Belglum on their visit to the United States in October. City Job for 'Charley' White's Son. Lieut. Charles White, son of Charles White, the former prize fight referee and sergeant at arms of the Democratic State Committee, was appointed secretary to Nicholas J.

Hayes, Commissloner Department of Water Supply, yesterday. He has just returned from with the American Expeditionary Forces in France. Lieut. White is A graduate of Yale. The salary of his new position is $3,000 a year.

He takes the place of Edward W. Buckley, who has become secretary the State Industrial Commission at $6,000 a year. KOLCHAK'S TROOPS ARE LOSING MORALE Admiral Prepares to Move the Seat of Government From Omsk to Irkutsk. CZECHS DEMORALIZED Bolsheviki Not Gaining Much, but All Russian Forces Grow War Weary. By the Associated Press.

PARIS, Aug. All-Russian Government of Admiral Kolchak is preparing to move from Omak to Irkutsk, Siberla, and the morale of the Kolchak army is becoming so bad that there is little hope of it regaining the territory recently lost to the Bolsheviki, according to despatches received in Paris. The despatches indicate that General is weakening the Kolchak forces. The wat weariness rather than Bolshevism Czecho-Slovak troops, which were the backbone of the army of Admiral Kolchak, have shared the general demoralization, and most of them insist on returning to their newly established country, refusing to fight longer in Russia. Recently a "green" army of considerable dimensions was organized in Siberia 08 well as in European Russia.

This army was recruited from both Red and White armies and pledged itself not to fight any more, saying the world war was over. It is attracting many men from the Bolsheviki as well as the antiBolshevik forces, its missionaries spreading as far west, as the Pskov front. Bolshevik propagandists in airplanes ere showering the northern Russian army in Pskov vicinity with leaflets, Geclaring the Americans and British are imperialists, according to despatches received here to-day from Lieut. A. A.

Granstadt of Kansas City, dated Pskov, July 26. Russian officers retaliated by sending bread and American white flour through the Bolshevik lines, with the result that the Bolsheviki are deserting to the well fed anti-Bolshevik forces in large numbers, according to Lleut. Granstadt. Lieut. Granstadt is directing the American relief work at Pskov.

LENINE TO CHANGE POLICY, THEN RETIRE One Condition Is Trotzky Stays Head of Army. By the Associated Press. STOCKHOLM, Aug. Svenska Dagbiadt is informed by persons closely connected with the Russian Soviet Government that Nikolai Lenine, the Premier, intends to begin a drastic change of policy then retire. One condition of his retirement will be that Leon Trotzky, the Bolshevik War Minister, be left in command of the Red army.

At recently held meetings of the Soviet commissaries, the newspaper's informants say, the question of giving power into the hands of other Socialistic parties was earnestly discussed, but Lenine declared that the best way to check reaction, as represented by Admiral Kolchak, head of the All-Russian Government at Omsk, would to drop no other party was able to reorganize power for a time in or order to prove that Russia. This, Lenine contended, would strengthen the Bolsheviki and enable them to resume power. views were shared by George Tchitcherin, the commissary for foreign affairs; M. Stoutchka, commissary of justice, and Prof. Podrovski, commissary of the interior.

SUBWAY STATIONS ORDERED. Contracts Let for Pelham Bay and Brighton Line Work. A. W. King received the contract yesterday for eleven stations on the Pelham Bay Park branch of the Lexington avenue subway at a price of $810,279.

All except one of the stations will be located east of the Bronx River and between Whitlock avenue and Pelham Bay Park. The work must be done within six months. Construction Commissioner Delaney also let a contract for building a new station at Atlantic and Flatbush avenues on the Brighton Beach line, which is to come through Flatbush avenue and then swing under the Long Island Station and over to Willoughby street on Its way to Manhattan by way of the Montague street tunnel. The successful bidder was P. N.

Brown Co. at $85,781. Authorization was given to the New York Consolidated Railroad Company to contract for a hundred additional steel cars for operation on Its subway and elevated lines at a total cost of 000. This represents a cost of $12,049 for each car and $2,117 for each motors This is a 70 per cent. increase since the first order for cars was placed.

The company now has 500 and deliveries are about to be made on an additional hundred ordered last July. The new lot will be ready in about fourteen months. FLEET OF 100 TO CARRY COAL. Anderson Explains Purchase of Ships From Government. The fleet of 100 ships sold to the Anderson Overseas Corporation by the United States Shipping Board for about $80,000,000 will be used as coal carriers between the United States, France and a Italy, was announced at the offices of the corporation yesterday.

The fleet measures a total of 300,000 deadweight tons. According to a statement issued by the corporation, the firm, which 18 Anglo-American, was organized for the sole purpose of taking title to the ships. It is headed by J. Herbert Anderson, who also is at the head of the Anderson Company New York, the Anderson Company of Canada and the Anderson Overseas Company of London, all engaged in the general shipping business. During the war the New York concern acted as agent for the French government in the purchase of steel tonnage in the United States.

Since the armistice it has purchased a large number of trawlers from the British Government and is now building fifty ships in Canada. BRITAIN HAS AIR MARSHAL. King George Is Chief of Aerial Forces. By the Associated Press. LONDON, Aug.

George has assumed the title of chief of the Royal Air Force. New titles for the commissioned ranks in the air force have been of the Air, corresponding with a Field given by King George, namely, Marshal Marshal: Air Chief Marshal, corresponding with General; Air Marshal, corresponding with Lieutenant-General: Air Vice-Marshal, corresponding with General, and with Air Colonel corresponding Brigadier-General. serve the independence and integrity of The idea in giving the ranks la to prethe air force as a separate service. The titles- will come into operation immediatery. LIQUOR BAN IS ON IN BELGIUM ALSO Stocks on Hand Are Confiscated by Government.

By the Associated Press. BRUSSELE, Aug. United States not the only prohibition country, Belgium having followed suit, 50 far 88 whiskey, gin and other highly alcoholic liquors are concerned. Soon after the armistice was signed a law was passed forbidding the manufacture and sale of such beverages. The making of alcoholic drinks ceased almost immediately, not much attention was paid to the rule 80 far as the selling of liquor in the larger places was concerned.

The authorities confiscated recently big stocks the bars had on hand. While these stocks had been sold openly they are said to have secretly acquired from soldiers and smugglers. The largest hotels now are unable to stir "for single drink other than light wine thirsty American and British officers passing through the city. U. S.

AIRMAN MAKES 148 MILES AN HOUR New Record at 5,000 Feet of 265 Miles in 127 Minutes. Despatch to THE Sex. WASHINGTON, Aug. Glidden of Air Service made the following announcement to-night: Flying in a Le Pere airplane to-day at an altitude of 6,000 feet Lieut. J.

D. Corkville with Sergeant J. R. Cook made flight from Arcadia, to Daytona Beach a distance of 186 miles, in 15 minutes, or at a rate of 148.8 miles an hour. Lieut.

R. H. Smith, with Lieut. W. L.

Williams and Lieut. R. J. Johnson, flew from Arcadia, to Jacksonville, in a De Havlland at an altitude of 5,000 and covered the distance of 265 miles in 127 minutes. This is a record flight between the two points.

The temperature at 4 o'clock at the a altitude of 5,000 feet was 65 degrees, while on the surface the, thermometer registered 92 degrees. Major W. J. Frank of the administrative department of the Air Service, Washington, in a De Haviland 4, with Lieut. Robert F.

Midkiff, made a flight from Mineola, N. to Amherst, 140 miles, in 60 minutes. The railroad time between the points named is five hours. An aero photographic expedition, consisting of twelve officers and men in Curtiss planes, left Langley Field, Virginia, at 3:55 o'clock this afternoon for Richmond for a ninety day tour of Virginia, New West Jersey Virginia, and Maryland, Pennsylvania. will be made in forty-six cities.

Following the expedition are motor truck equipped with all apparatus for aerial photography in all its phases, including motion pictures. The pictures taken at various altitudes will be exhibited on the tour. MISS MARY HASELL A BRIDE. New Yerk Girl Married to Son of Dutch Minister of State. Special Cable Despatch to THE SUN from the London Times Service.

Copyright, 1919; all rights reserved.LONDON, Aug. Mary Mason Hasell, daughter of Lewis Cruger Hasell of New York, was married to-day at St. Cuthbert's Church, Edinburgh, to Rudolph Adrian Cort Van Der Linden, son of Pieler Van Der Linden, Dutch Minisin ter of State. Miss Hasell is the daughter of Mr. and Mrs.

Lewis Cruger Hasell 126 East Seventy-first street. Her father is conla nected with William Iselin 354 Fourth avenue, one of the largest dry goods commission houses of the East. BILL BARS FOREIGN SHIPS. War Time Privileges in Coastwise Trade Withdrawn. WASHINGTON, Aug.

of the wartime act under which ships of foreign registry were permitted to engage in coastwise trade was voted to-day by the House. Under provisions of the measure, however, foreign ships will be permitted to carry passengers between American ports and Honolulu until July 1, 1920. The bill now goes to the Senate. Congress in 1917 passed a law which permitted foreign ships to engage in the coastwise trade so that larger coastwise ships might be used in overseas service during the war. Resign From Liquidation Board, WASHINGTON, Aug.

Baker has accepted the resignations of two members of the United States Liquidation Commission in Paris, Charles G. Dawes, and Homer H. John son. 217 VICTIMS IN MEXICO SINCE 1911 Lansing Tells Senate Also of 942 American Damage Claims Filed. PAYMENT STILL SOUGHT Gates Assails Fletcher Again -Oil Sales to Japanese Threatened.

WASHINGTON, Aug. hundred and seventeen American citizens have been killed in Mexico since the end of the regime of Porfrio Diaz on May 25, 1911, the Senate was informed to-day by Secretary Lansing in response to a resolution by Senator King. Democrat, Utah. fled American citizens asking tions during time have totalled 942, damages because, of Mexican depredaMr. Lansing said.

No amount of damages was fixed In 158 of the claims, Mr. Lansing said, but the total of the remainder was 597. "The question of claims of American ico," said Mr. Lansing, "Is still the subcitizens a against the Government of Mexject of diplomatic negotiation with Mexico, having been strongly presented to Gen. Candido Aguilar, confidential Ambassador to Mexico, recently on a cial mission to the United States.

This Government is pressing the matter of arranging for the adjustment and payment of these claims upon the attention of the Mexican Government." As to the number of citizens of other countries killed in Mexico, the Secretary said this list was not complete. Attention, however, was called to the killing of 303 Chinese at Torreon on May 14 and 15, 1911. Accompanying Mr. Lansing's letter was a table compiled the State Department on claims filed. Claims for damages to property were 772.

of which 118 specified no amount. The other claims totalled $22,835,592. Claims growing out of the killing of American citizens totalled seventy-three, of which twenty-five stated no amount of damages. others carried claims for $2.317,375. There were ea ninety-seven claims for injuries persons, with eighty-seven calling for $1,476,629.

Elimination of President Carranza "with the least damage possible' is the only solution of the Mexican the House rules committee. was told to-day by William Gates, an archeologist of Baltimore, who resumed his testimony on a resolution proposing an investigation of the relations between Mexico and the United States. Mr. Gates said Henry P. Fletcher, the American Ambassador to Mexico, realized that Carranza was "impossible," and added that the Ambassador had not obtained the facts in the Mexican situation for President Wilson.

"If we had had Hoover a storgenthau, Whitlock or a in declared Gates, "the German Minister Von Eckhardt would have had to leave Mexico and Mexico would have come into the war on the side of the Allies." "What would be the effect of the withdrawal of recognition of Carranza?" asked Chairman Campbell. "In the territory controlled by Carranza it would mean the death of American men, worse for the American women and destruction property needed in rebuilding the country," was the reply. Pressed further as to how Mexicans would accept authoritative assurance of financial aid and possible military assistance from the United States in opposing Carranza, the witness said most Mexicans would say: "Thank God, you have redeemed belief in America." Some of the American oil companies in the Mexican field are reported negotiating for the sale of their properties to Japanese interests. The State Department is investigating. Officers of the American concerns are reported to have stated they were taking the step in protection of stockholders because they say they are unable to get protection for the properties.

TROOPS CALLED IN BASEL. Strike, Almost General, Results 1n Rioting. BASEL, Aug. strike, almost genoral in its scope, is in progress here. Troops have been called upon and machine guns have been placed in the heart of the city to put down the disturbances, in which stones were thrown by the demonstrators.

Shots had to be fired into the air to disperse the crowds. Encounters between the strikers and the police have taken place. OUT OF TOWN FOR THE SUMMER METROPOLITAN READERS OF The Sun and of The Evening Sun Leaving town for the summer or for shorter periods may become mail subscribers and have their papers delivered to them wherever there is a post office. Addresses will be changed as often as desired. Order through newsdealers or at publication office; 150 Nassau St.

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