The Oregon statesman. (Salem, Or.) 1916-1980, April 07, 1920, Page 4, Image 4

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The Oregon Statesman ,r,?Jl!fif?i!
Iwued Dally Except Monday by
2 1 S 8. Commercial St., Salem, Oregon
Chemically Treated and Antiseptic
. for Cleaning and Polishing Glasses
When the Cleaner is Soiled Call and
Get Another With Our Compliments
Eyesight Specialist
303 State Street SALEM
Phone 239
The Associated Press is exclnsiTely entitled to the use tor republication
of all newt dispatches credited to It or not otherwise credited In this paper
and also the local news published herein.
TL J. Hendricks. , . , i , . , , . .Manager
Stephen A. Stone. . . .Managing Editor
Ralph Glover. .Cashier
Frank Jaskoski Manager Job Dept.
DAILY STATESMAN, serred by carrier in Salem and suburbs, 15 cents a
week, SO cents a month.
DAILY STATESMAN, by mall, S6 a year; $3 tor six months; SO cents a
month. For threa months or nan. nM In arivanre. nt nl nt IS. wir.
(THE PACIFIC HOMESTEAD, the great western weekly farm paper, will counselor and mend of all the local
t be sent a year to any one paying a year In advance to the Dally I officials. The letter, being entirely
- r ' ' inexperienced in the procedure of
Teth?' - W; " CWXU l0 m0uXhai " ent t0T i-sulng and marketing bonds, are
WEEKLY STATESMAN. Issued In two etx-rare aectlona Tueadavs and exceedingly grateful for the guidance
Fridays, $1 a year (if not paid In advance, $1.25); SO cenU tor six afforded by the expert.
monins;.z centa for three months. ,
ment a bond house learns from one
of its scouts that a bond issue is
being discussed, it dispatches one of
its high-priced experts to the spot.
This expert bond buyer knows ex
actly how to become the guide.
Business Office, 23.
Circulation Department. SIS.
. Job Department. SSI.
Entered at the Postofllce In Salem, Oregon, as second class matter.
This expert bond 1 negotiator is
armed with full copies of procedure
prepared by learned counsel, well
compensated tor their skill In pre
paring papers which after being
signed and attested will stand the
test of the courts. At each stage
of the forward steps in the; bond ad
venture he provides the proper docu
ments which are signed. Also, he
provides the bonds themselves, beau
tifnllv engraved as bonds' are all
'The penalty for murder in the first degree shall be death, ex- 0f which costs money to the bond
a t tA i H . " I
cepi wnen me-inai jury snail in its veruici recommend uie lraprw-Uouie.
. k.-. A, a.ll A. A. 1 . 1 - aT - - a V
umnrni, in wnicn case me penalty snau De me imprisonment. These bonds are oblirinrly signed
me writer isvureu me auumiou oi capital punisament in ure i,v the nmiwr inni n'fieiata and h
gon, in the campaign preceding the 1914 election, when it was abol-Lreat pink ,eai o lne town or dit
UCU. - ' I ,rtn, .rrt-aA Than lh.f,
tie nas not cnangea nis opinion. - . taken over by the bond house, which
And the voting of the above quoted words into the state con-1 o,,. t knv ih.m anin
.:..: ... oi . -.1 1 a i . I - -J - -
aumwuii uii iua i uum not scrTe 10 restore capital punisnment, tney arc validated by being voted.
excepting. in some mosi extreme case, use mat oi jonnson, wiio m ih .wi tvhii. Mil
l.l i i v: v.- -ar n i: i j . i . r
vwiu. www icw iiis ucuciacurw, Jim. freeman, wihj iiau procureu I v0te that all this is done before
ms parole irom prison, in ai other cases, the fundamental law the bonda are voted.
1.1 Vv . Jl m Jm 1 i AM . ... .11 M a. .11.. a I I
.r.t.. . , , . . T ' - 7 . v" I Then comes the election, and as
o,u.i.jr v wuiscntsui a uuuiau uciiig ui. um inc. i, tne fhion nowadaTS. a few Deo-
a i i a. x z i. ii m i l i . . . i m
in case ine ciause is voiea into me iunaamemai law next raonin.
Oregon will be in much the same case as was Kansas for so long;
where the death warrant -and the time of its execution were placed
with the governor and all first degree, murderers remained in the
penitentiary, lor no Uovernor would sign any such warrant.
pie turn out at the special bond elec
tion and those few vote the bonds.
In Bend recently, something like a
dozen electors went to the polls at
the school bond election, and all but
one voted for the bonds. It Is not
Henry Clews, the Wall Street authority, in his current weekly! unusual lor the bond election to be
financial letter, is still optimistic. Following are some excerpts : I carried by the attendance of only
"Crop prospects are of an unusually favorable description for 'this three or four taxpayers and the of-
scason oi ttie year . .. . some $iu,uw,uuu (gold) was received at the I ticials themselves. So quietly have
opening of the week, while probably double that amount is' under-1 the preliminaries been conducted and
stood to be on its way, and an even larger sum likely in the near! so little attention has fceen crested
a a. t. 2 f ml ij 1 l? 'ii . - .. T .. .
luiure 10 oe saippcu. ; . . . me new goia nas gone uirecny into tne l The people generally know that a
vaults of the federal liescrve Bank of New lork .... Earnings of I bond Issue is contemplated, and that
not a few of the standard railroads have shown decided improve-1 a new schoolhouse or a new dock
ment. ... VThe pre-convention campaign of the various presidential lis needed, and they pay little atten
candidates nas Deen singularly tree irom attacks on capital. . . . yiiion to the transaction beyond dimly
industrial earnings have held their own remarkably well in spite of I anticipating that the schoolhouse
the heavy burden ol taxation to which they have been subjected, and I wilt be erected, the dock constructed
in Kpite also of the high prices of labor and materials with which Lnd that everybody will live happily
they nave to contend. I thereafter.
With the voting of the bonds over.
In a manner that attracts as little
attention as possible, it is necessary
------- v
bdltor statesman: I to conform with the law or charter
Considerable has been said about the raising and manufacturing! requirements for "public advertls-
of flax fibre in the Willamette valley, but, so far I fail to see any I ing" or "public sale. Some or these
serious suggestion in regard to increasing the business and proving I reaniremeuts are that "notices shall
to the capitalists that we are going to raise the stock, and that it is I be vosted in three public places.
tip to them to start a company t5 erect a small spinning mill at Sa- so the three notices are printed on
lem. 1 suggest that the proper way to increase the production of l three sheets of naoer and stuck ud
flax is this: , I mia on the schoolhouse door where
Any farmer interested in growing flax get the seed from the! the children mar read it if they are
Oregon Flax Fibre Company at Turner, or the state flax plant at j tall enough, one on the plowed field
Balcm, and get from their superintendent instructions on how toLide of a telephone pole where the
grow tire best flax, and When the crop shall be harvested. Lntil I wooa peckers could peck at it, and
we nave some pulling machine, we are going to Harvest with a sen the third on the side of a bridge
binder, and, by, getting the ground smooth and level, the only dif-faclne the river. Thus the charter
ference will. .be the loosing of 2 or 3 inches of the straw. I knowl... Kn conformed with
vy expenence tnat tnc quality oi tne nax is just as goou ny cuiuug Gr if th charter requires adver
as the pulled flax. I tUlnr In nuhltcatlon of reneral eir-
After the farmer has his flax thrashed, he mav do the rettin? on) .v. - j i
, iruuiion, me auvtrruiHruicub tn uui
his land or use bur water retting system. inserted in the local paper by the
a lie ucjli, uuci auuii, auu mc main uur, is iu nau uur ui uifrcMnci v--j .TD..t whn mtm th 1orl
governor and our warden, Mr. Compton, let all the idle inmates of the! nmriu n tmnhio and Tnnomn.
pcnueniiary scutcn tne straw, ine parties owning tne iiax would nei . . .
tvmiuK iu pay lair wainrs lor iuc wurK, me siaie iiax. inaiii kuikt-
.Inteudent to have charge of the scutching mill. The inmates would
not have to go outside. This work would not interfere with outside
labor. The state to quit raising flax, and then the farmers will
certainly get an enviable return, especially if the fibre is pooled
and sold for the benefit of the growers.
Turner, Or., April 5, 1920.
transaction and
then the bond expert buys up all the
extra copies ot tne local paper as
, Silent, noiseless, thoroughly hid
den ''public notice,' "public adver
tising," and "public sale" appears to
be the secret of how municapat bonds
have been bought in Oregon . for
many years la defiance of every con
sideration of public right and public
Interest. Full technical compliance
witb the provisions of state law or
local 'municipal charters has been
observed scrupulously, thanks to
procedure carefully devised by. able
bond attorneys and t!w : pussyfoot
publicity methods practiced within
the. law by experts in raanlpulating
' guileless I'jcal cbnhcilmen," school
district trustees and directors of
'' That tt)e public has lost what In
the aggregate may run to many,
tu any thousands of dollars la a pos-
. slbility representinsr the difference
In price, between that paid to the
. public for. the bonds and what they
were worth on the market as soon
as they were In the possession of the
bond hduses which bought them.
An Indication of the extent of theso
losses to f he public is furnished by
the recent exposure of the difference
in prices paid to the municipalities
and districts for bonds which later
were acquired by the state treasury
hy purchase from bond houses,
It has not been by any easy or In
expensive methods that these pub
requirements as to publicity have
been circumvented. One big bond
firm maintains a force of field men
who visit every city, town, school
district, port district or other muni
cipality on the Pacific coast that has
power to issue- bonds. This field
force is a large one a corps by it
self of gentlemanly sdouts who seek
out the country. Other bond houses
also maintain smaller forces of exj
pert seekers. j
These gentlemanly scouts visit the
town clerks, district clerks, mayors.
councllmen, recorders and other pub
lic, officials in eaeh city, -district or
municipality, ineir coming is -not
heralded by circus posters. No ad
vance puoucuy nonces, with por-
Aprll ?, Wednesday Library Wture
recital "American Music." by Wtllam
ett unireralty school of mualc. Public
April t and IS. Friday and Saturday
aiariou . nuniy sunaay scnool con
vent ion. Palm.
. April 9. Friday Annual plar by
sniupon uramaitc aociety or blah
April IS. Sunday (Tentative) Bloa
aoni day in Salem.
April it. Sunday Baseball. Salatn Sen
a tors t. iooaejaw.
April 17. Saturday Debate between
illamette university and College of
tua;et Bound.
April 20. Tuenday Realatratlon for
voters close .
Anril 21. Wednesday Willamette
ii club concert at Grand Opera
April 23. Friday Howard Evarta
weed. landscape architect of Portland
to addresa Salem Art league at public
April 2J. Friday Debate between
Willamette university and Pacific unl
.April 26. Monday Boy Semit enter
tainment at armory under auspirea of
aaiem L.IKS.
-April S. Friday Debate between
Willamette univeraity and McMinnvllle
May 14. Friday Debate between
traits, are sent to the lo.-al papers. I Willamette university and Oregon Ag-
Tney are quiet, modest scouts, who
move without ostentation
Their purpose is to get the scent
of possible bond Issues, contemplat
ed In the various towns or districts
for the various public purposes for
which It is customary to i.sue bonds.
Having noses that are keen and well
trained, these bond bouses smell out
the information early in fthe incep
tion of a bonding project. And then
they report.
Another smaller but much abler
and' higher-paid corps of experts Is
employed If the big bond house,
tnd the smaller bond houses also
have relatively large corps of these
same ' hfgo rank r experts.- --'The-lho-
ricultural roll ere.
Aprir J and May 1 "Awaken In c of
fprin pageant upera House, hospital
s,r 11-Tuesday Intercollegiate de
bate. Willamette vs. O. A. C.
atay i and II Nineteenth annual
convention of Oreron State Association
w Mmai.r nuranfri. in Xa lem.
ilay 2. Saturday William Howard
afi speaks at armory.
June it to 17 Officers' schools for
Oregon National Guard at Vancouver
nra rori olevens.
tan is ana is national gypsy
tour motorcycle events In Salem.
July C to 2S Annual encampment of
vrriron national ouard. Infantry and
engineers at vamp Lwis, artillery
Fort Stevens.
June 21. it and Jt Imperial conclave
oi siyatir bnrine In Tortland.
T . . i a
... n rvnesaay imperial con
ciave or Mystic Shrine to visit Salem
june si, z and Zf Portland tlom
July 22. 21 and I State
ventlon In Salem.
September 21 te October
state fair, -
soon as It Is off the press, including
such copies as ordinarily are mailed
to the clipping bureaus, which main
tain a clipping service for the ben
efit of all bond houses.
Thus by this well-planned secrecy.
ably fortified by the skill of experi
enced men who have been through
thomlll many times, every formal
ity has been conformed with. Bo
when the sale tomes, the successful
bond house puts in its sealed bid.
there is no competition tor the
bonds, the bid opened and accepted
wnn me gentlemanly nona ouyer
on the job and at once he pays what-
. a astaa. a J l - rl
ever oaiance is aue. jne last aciau
of the transaction has been closed.
and meanwhile the bonds have been
In the possession of the bond house
all the time, or at least are all ready
signed and sealed, ready for Immedi
ate delivery to him. Olten they have
been sold by the bond house on
option and at a handsome profit
pending completion ot the final for
malities of validation.
Thus each bond house endeavors
to outwit the other bond houset,
from openly competing, and thus
when successful, each bond bous
through its resourcefulness In buy
ing pften secures bond issues at
enough less than the market value
of the bonds to cover not only its
immense overhead expense for scouts,
buyers, legal advisers, advance
bond printing, etc., but also to yield
a profit above that immense over
head expense.
Close readers of The Voter will re
call that prior to the 1919 legisla
ture we recommended enactment of
state law re-miring genuine publicity
for bond sales. A year prior to start
ing a campaign for this measure in
the public interest, we interviewed
all the bond houses in Portland to
get their views. With the exception
of Morris Bros, and two very small
houses, all the bond dealer were
strongly opposed to the legislation.
Morris Bros, and the other two
houses (both of whom bought for
eastern buyer instead ot buying tor
their own ownership as did Morris
Bros.), strongly supported the pro
posed legislation, as being la the pub
lic Interest.
When the legislature met, two
Portland attorney lobbied against
the bill, but in spite of their lobby
ing it passed the bouse. It would
have passed the senate, only (as re
ported in The Voter at the time).
one senator rose in hi piace .ana
announced that "Morris Bros, were
opposed to the Mil and if they were
opposed to It, it must be a bad bill
and he was against it," So the bill
was defeated. .
What wa the reason for this
change of front by Morris Bros?
Simply that they had learned by
contact with the local field that In
order to compete with the other ag
gressive bond houses it was neces
sary for them to abandon their policy
of relying on open bidding or they
would be able to get no bonds ex
cept from their competitors, who
had bought them secret elf and made
the big profit. So they decided to
get the bonds at private sale them
selves and reap the long- profit.
Then they put In the field a big
force ot scouts and a big force of
bond buyer. They went in on altlg
scale, and built up an organization
of bond buyers that beat the other
bond houses at their own game, thus
virtually acquiring a monopoly ot
Oregon municipal bonds and acquir
ing the bonds at prices which yielded
enough to pay the heavy expense ot
the high-priced organization and
handsome profit besides. Naturally
when they saw they conld beat their
competitors at their own game, they
were willing to join with their com
pet! tors in seeing that such a profit
able game was not interfered with
But the legislature meets in 192
again. We feel certain that after
the disclosures ot this year as to the
methods ot purchase, the next
legislature will enact the laws
necessary to make such manlpula
tion Impossible, Doubtless large
corps of gentlemanly scouts and ex
pert bond buyers will find them
selves In other employment, as the
long profit will have been squeezed
out of the bond business a now con
ducted In Oregon. But we cannot
tee but what the public Interest will
have been protected immeasurably
There will be no excuse whatever
for the next legislature not enacting
mis protective legislation wnicn was
before it in 1919 and which It en
acted at that time would have saved
thousands and thousands of dollars
to the taxpayers of Oregon during
tne year that has passed.
Voter. April 3.
l "V
follow as
Elks COB-
5 Oregon
ine uregon Voter has performed
good ser-.lcn in bringing this mat
ter to the public attention.
Ana it win not be allowed to tx
dropped or overlooked at the proper
time. The Statesman will under
Uke to see to that..
.very Oregon municipality hav
tnr IiaiiiI. , a i . . .
mi aic uuKui to oe re
quired to advertise the fact In a Sa
JAINTY and original
is the Monogram
package in gold and white!
It will give delight as will
also the super-quality can
dies which it contains.
Other Vegan packages you
will like are the Brown
and White.Tiger Lily, and
Blue Bells.
At your dealer s.
Portland. Seattle. Spokane. Tacoma.
land dally newspaper, as well as In
the home paper.
The advertisement should be in a
Salem .newspaper, in order that the
state treasurer may have notice, and
may have a chance to bid.
The state of Oregon Is the largest
purchaser ot . bonds for Investment
In this state. The statu treasurer
bought a million and a half of bonds
last year, and will have to buy at
least' as largely in the future.-to
keep the funds working, and to take
up the maturing bonds.
The state owns now over f 3.700.-
000 worth ot bonds, on the accounts
of the state industrial accident com
mission and the segregated accident
fund. . . : .
Oregon bonds ought to be preferr
ed by the tate. and the state ought
to buy them so as to eliminate the
excessive profits of bond houses.
"Pitiless publicity will accom
plish this, and the legislature must
pee to It that such pubflrlty Is pro
Wanted, sunshine.
The farmers are cryiag tor It.
S m
Johnson did not get even a look-
la in New York.
The sheathing Is going onto the
roor or the rain machinery building
ot the big paper mill In a hurry. It
the weather would favor them, the
big force down there would soon
have that structure nnder roof.
The price ot loganberries is bound
to be, in the course ot time, what
the juice and jam and jelly factor
ies can afford to pay and pass on ts
the consumers, at price they will
The consumer will finally dictate.
If he thinks It Is too high, he will
use something else. II Is free
moral agent. Nothing can stop him.
So. for the good of all concerned,
a "runaway market on loganber
ries would be a bad thing for the In
V y
The consumer would get away
from the loganberry habit, and It
might be too expensive or Impossible
to get him hack. That .would rata
the Industry. -'
Team-work, and loyalty to home
packers, la what is needej new. Cas
it be had? Will the producers look
a little beyond a present advantage
Missouri will be 100 years old at
a state this year. It date back K
most to the time when Champ CUik
began to run for coagrea la the'
Math district..
Allen's root-Case, the an Uaeptle pow
der to bo shaken Into tne shoes and
sprlakted la the foot-bath. The Platts
burg Camp Manual . adrUet men In
training to Foot-Caao in Ifeetr shoes
sch morning. It prevents Misters and
ore spots and relieves painful, swollen,
smarting feet and taken tb sting el
of corns and boakma. Alwara n AI
ln's Koot-Kae to beean In ,
f 1
Republic Truck art attracting the attention of a fTe,t num
ber of people. Priendg aj well u enemie. Last night some
one destroyed a bill board reading Republic Trucks on the
river road, with malidoui intent. .We will pay in fold coin
$100 for the arrest and conviction of the person or person
doing this.
279 North Commercial Street SALEM, OREGON
111 M
- - ,-T
I'. I,
Owing to the change in owncrihip the
Main room of "MILLERS" Will
Be Closed Today
For the purpose of loToicing
and all customers will please use the
Court Street Entrance
Open For Business Thuri day' Morning
lem dally newspaper, and In a Port