The Oregon statesman., May 11, 1921, Page 1, Image 1

TIIK WKATIIKK:
For Wednesday: Fair and warm
er with westerly winds.
it
The Statesman receives ti leased1
; wire report of the Associated
'Press, the greatest and most re.
; liable press association In the
. world.
SEVENTY-FIRST YEAR
SALEM, OREGON, WEDNESDAY MORNING, MAY 11, 1921
PRICE: FIVE CEHTSi-
FORMER
ACCUSED OF USING UNITED
STATES MAILS TO DEFRAUD
Indictment is Based of Alleged Connection With Series
of Land Transactors Involving More Than $80,000
Associate, Although Not Named, Believed to be
Carlos E. Byron, Now Serving Term in Federal
, Penitentiary
MARION COUNTY PEOPLE ARE HEAVY LOSERS
Unofficial Reports Indicate That More Than 100 Local
; People Invested in Timber Lands for Which They
Never Received Title From Locators
v PORTLAND, Or., May lO.-John W. Todd, ex-superintendent
of the Salem, Oregon, schools, now principal of a
Vancouver, Wash., school, was arrested today by federal of
ficers upon a charge of using the maijs with intent to de
fraud. Todd was indicted secretly last week by the federal
grand jury here.
The indictment was made in connection with a series of
land transactions in which it is alleged more than $80,000 was
obtained by Todd and certain associates through fraud.
John W. Todd, arrested In
Portland late yesterday following
Indictment by the federal grand
Jury In connection with a serle
of land transactions, is well known
In Salem, where he was superin
tendent of the public schools for
several years. He also was a prom
inent member of the Salem Ro
ta rims and belonged to numerous
other fraternal, civic and com
mercial organization of this city.
. Many Are Defrauded.
Although Mr. Todd was never
acensed locally of actually locat-
lag persons on.; timber 'land. It
wa generally rumored that he at
. one' Umr was closely affiliated
t with the operations? of Carlos E.
Byron, who is HOW serving a term
in the federal prison at McNlels
Island on a charge of using the
United SUtes mails to defraud.
' In fact, some people said after
the arrest and conviction of Byron
that they were approached by Mr.
! Todd, who later introduced them
to Byron.- Subsequent to these ln
troductlons it, was alleged that a
, large number of Salem and Mar
lon county residents paid Mr.
' Byron for locating them on vari
ous timber tracts. In some In-j
stances these persons were alleged 1
to hate paid Mr. Byron sums of
money ranging from 1500 to ISO.
Last summer there were printed
in the newspapers of - Salem a
'" series of stories in which It was
intimated that Mr. Todd had
i knowledge of the operations be
ing carried on by Mr. Byron. It
i was said at that time that the Tic
tims numbered several hundred
and that the net loss to Marlon
, eoanty people was in the neigh
borhood of 140.000.
Following these newspaper
Stories came the: announcement
that Mr. Todd had resigned as su
perintendent of the Salem schools
and had decided - to engage In
business at Vancouver, Wash.
Later Mr. Todd left Salem and
has since been making his home
In the "Washington city. Being a
good mixer, of genial disposition
ana an active worker in the or-
ranliations with which he was af
i filiated, he soon became prorai
I sent in the business affairs of
yncouver. Reports reaching here
4 last night indicated that he bad
transferred his membership in the
Rotartans to the Washington city,
r Md recently was elected an offi
cer of the latter organization,
. MoYfa (a ViariHifni .
After leaving 'Salem little or
nothing was heard of his allered
f connection with Byron until two
m SERVICE RULE MODIFIED
felOCRATS; SLATED FOR PUNCH
OiCE SEEKERS RENEW HOPES
WASHINGTON, May lo.Clvil
rttet y restrictions governing
toasters appointments were
Joined by President Harding to-
fUT fr1" the administration a
freT land.
In
executive order affecting
i'fP'W'mateiy 13,000 i.osloff ire
the first, second and third
j'a8cs, the pwldent authorized
e sehwtion OJt nv on, f,f tn
TV8 'three on the eligible list as
"wermined by open competitive
examinations. Under an order of
ilTT.. nt WiltKn. the executive
ceuia exereis no such choice, but
;A,r85n,red to PIolnt the appli
ret at the head of the list.
siaent Harding issued a
SALEM SCHOOL HEAD
weeks ago when 40 or more resi
dents of Salem were summoned
to appear before the federal grand
Jury in Portland. Upon the re
turn of these witnesses it leaked
out that Mr. Todd s name wag
mentioned as being under a cloud.
More recently the federal grand
jury returned a number of indict
ments, but no mention was made
of Mr. Todd. This was taken to
mean that the grand jury had
failed to take any action against
the former school head. When the
news of Mr. Todd's indictment and
arrest reached here late last night
it occasioned considerable sur
prise among his friends. In fact,
one or two Rotarlans when asked
last night for information regard
ing Mr. Todd, refused to offer any
comment other than that they had
reason' to suspect that he might
be indicted. During his residence
in Salem Mr. ' Todd's activities
were not confined to school work,
or in fraternal circles. He was
prominent in the church, and was
declared one of the most efficient
educators ever employed in Mar.
ion county.
Much Money Involved
It is likely that the same wit
nesses who appeared before the
federal grand Jury in connection
with the land transactions involv
ing Mr. Todd will be called to tes
tify against him when his case is
called for trial in the courts. It
also is probable that Mr. Todd will
summon a number of witnesses on
his own behalf: These witnesses,
it was said last night, likely would
be 'called as character witnesses.
Portland newspaper dispatches
Indicate that the charges against
Mr. Todd Involve transactions
amounting to 180,000. Whether
Mr. Todd received any part of th's
money wilt not be determined un
til the case Is called for trial.
Missing Craft Sighted
Off Coast of Honolulu
HONOLULU, T. H.. May 10.
The United States fleet tug Cones
toga for which hope had been
abandoned when it was listed as
long overdue at Honoluln on a
voyage from the Pacific coast, has
been sighted. aecording,to a wire
less message to the navy radio
here today. The message was
from a mine sweeper of the sma.M
squadron sent in search of the
Conestoga. It gave no details.
statement paying that th" new
arrangement had been decided on
because it would permit such
elements as business training and
xperlcnce to figure in th selec
tion of postmasters and would not
stake the choice inertly on "a
cloistered- scholastic examination
which might result in high grad
In theory but not a guarany of
efflelerwy in fact."
Today's action was the first im
portant Ptp taken by the new ad
ministration in the general prob
lem or patronage and is under
stood to have hern decided on
after conferences between the
president. Postmaster General
Hays and other administration officials.
r -
':
V. V.kIo. v -Mine? intend
ent of Salem public Kchool who
wu arrested in Portland la-1
night charged with usin ill
mails to defraud.
T
OF
Northwest Division of Red
Cross Asks Cooperation
Of Local Chapter
The executive board of tho
Marion county chapter of the Ked
Cross has been asked by 'lie di
vision manager of the northwest
division at Seattle to supply the
headquarters with a list of all
Marion county ex-service men en
titled to hospital treatment who
are not in hospitals at present,
the number of men In the county
who are not receiving hel-t anJ
the number of men in these
groups who refuse to press thir
cla'm against the government.
The board is asked to furnish
a report of the number of these
men at once, to be followed by a
complete list of the men and their
apparent disability. The Red
Cross has asked the cooperation
of the American legion in order
that the work may be completed
at once and from the accurate rec
ords of the legion. .
Henry W. Meyers and Mrs.
Arthur Benson returned Monday
night from Seattle where they
have been investigating lied
Cross work.
E
T
Silverton School District to
Vote Again on New
Building
SILVKRTON. Ore.. May !.
tSiN-cfcil to The Statesman i Th--$60,000.
bond issue was brought
befori? the voters of the Silverton
school district acain Saturday.
At the latest report the issue far
rb'd with a majority of two votes.
Thirteen votes which were
thought to be "yes" votes were
disqualified because illegality. 1'
is reported that the "no" voters
will request a recount.
This issue was tirst voted on
about two month- ag. It was
then defeated by a lurc majority.
A month ago the Silverto(n voters
were asked to vote on a JK'.ooo
bond Isku to be ured fir a 'liKh
tirhool annex. This a No was de
feated. A short time ago a pe- j
tition w:is circulated which
broil ili t about la.st Saturday's:
election.
Steiger Says Wife
Threatened His Life!
Charging that bis wife attemp
ted to take his life and liat it i
therefore im possible for them to
again live together as man and
wife. T. W. Steiger filed a eni
plaint against Orlena K Steiger,
yesterday in the circuit court.
The complaint states that prior
to March 2- l-'. Mrs Steiger
connived with Jesso Mullinix t
U take the life or her husband "
shooting. On September 2'-'.
1920, Mrs. Steiger was convicted
of assault with intent to kill, and
sentenced to a term of I ear:i.
She is now paroled.
WE
DISABLED
m
BOND
REDES
TARIFF IS BIG
5SUE BEFORE
SENATE TODAY
Six or Eight Democrats Are
Expected to Support Bill
On Final Rollcall in Senate
Is Report.
SPECIAL FAVORS HIT
BY SENATOR WALSH
Bankers Declared Opposed
To Protection of Home
Industries, Charge
WASHINGTON. May 10. The
emergency 'tariff bill will come to
a vote in the senate late tomor
row with passage regarded as cer
tain. .
The measure is expected by
those in charge to command the
vote of the Republican majority
with a few exceptions and to ro
reivo; thrV support of from six
to eight Democrats. Four Re
publicans refused to support the
I bill when it was passed by the
asi -naie out today one of them.
Senator Kdge, New Jersey, an
nounced he had decided to favor
it because of improvements and
changes. Support from the Dem
ocrats is expected to come from
senators of agricultural states.
T?n days of extended debate end -ed
late today with shots at the
measure from Senators Reed, Mis
souri, and Walsh, Massachusetts,
both Democrats, and an announce
ment of support by Senator Good
ing, Republican, Idaho.
Talk Are limited '
Bediming at noon tomorrow
speeches will be limited .to ten
minutes on each amendment. Dis
position of the measure will be
followed by reference to a con
ference committer.
Senator Edge said he had de
cided to vote for the bill because
he believed it contained "enough
of good to more than counter
balance the policy and features I
believe to be bud.-' He enumer
ated among changes for the bet
ter he considered had been made
as the shortening of th's effective
period from ten to six months.
This led Senator Reed to re
mark that if "shortening its life
four months made It partly vir
tuous, why not make it wholly
virtuous by killing it allogether?"
Mr. Reed assailed the bill as
"pork barrel legislation."
Helif In Happed.
The right of the farmers to any
relief legislation was challenged
by Senator Walsh, who declared
"it is no time for the granting
of special favors to any class."
International bankers were said
y Senator Gooding to be opposed
to a protective tariff, and therein,
he added, lay one cause of Ieino
cratic opposition. These bankers,
he asserted, w"re useful in the
raiMns of campaign funds. He
charged the Democratic party
with responsibility for the low
prices of farm products. They
we.ro the result, he said, of Demo
cratic action in putting such pro
ducts on the free list.
L FAVORS
T
Candidates for New Position
Named at Meeting of
Workmen
With the exception of two lo
cals the Saleni Trades and Labor
council at its meeting last night
unanimously endorsed the move
ruet.r to introduce a business airent
lnlo 'ho local labor organization
and the names of three men were
suggested for tlm plaex-. Thos"
iminori a.H candidates for the place
were I. V". McAdoo,' secretary of
i lie Salem council. W. it. Darby,
a carponter, and W. K. I'arion, a
plu m ber.
The action taken last night by
;lie l.itior council presages great
er success for the labor organi
zaiiou in this ciy and insures a
b iter and closer spiiit between
the business men and employers
and the members of the council.
The business atent will have for
his work the building up of a
stronger oianization among the
Salem workers and the m?inin
ance of harmonious relations
among the various factions of the
council. It is, in the opinion of
the labor leaders here, the- open-
(Continued on page 2)
DDI
BUSINESS
n
SCHOOL ISSUE
LIKELY TO GO
TO PATRONS
Board of Directors Consider
Proposal to Call Vote on
Retention of Manual
Training Department.
NEW TEACHERS NAMED;
CURRENT BILLS PAID
People Tell How Schools
Should Be Conducted But
Fail to Render Help
The feasibility of submitting by
vote the question as to whethei
or not the people wish to retain
the manual training department
in the junior high schools of the
city and are willing to assume
the additional expenuse incurred,
was given serious consideration
last nigbt at the regular meeting
of the school board. The employ
ment of teachers for the coming
school year also occupied the at
tention of the board, and upon
the recommendation of Superin
tendent George W. Hug, nine new
teachers were elected to fill va
cancies existing by reason of the
resignation of former teachers.
It appeared to be the concensus
of opinion of the board that by
careful manipulation of the school
funds they would be enabled to
keep within the limit. In doing
this, however, the manual train
ing departments of the Junior high
schools of the city would have to
be eliminated. This was the ac
tion taken by the board at its last
meeting, but as numerous com
plaints have been received by the
board disapproving the move, it
was suggested last night by Faul
Wallace, that the question bo put
to a vote at the special election
to be held in June and thereby
save unnecessary expense at a
later date. It is thought an extra
levy of one mill would probably
be sufficient to retain tho manual
department in the schools.
People Are Willing.
That the people are willing to
tell how the schools should be
conducted and yet are unwilling.
In many cases, to furnish the mon
ey necessary to carry out their
suggestions was in tho opinion
of members of the board tdo often
the case. When once the question
is put to a vote there is nothing
left to be said. .
Again the necessity of mer
chants and others holding bills
against the schools district, pre
senting requisitions with their ac
counts was insisted upon by the
board. Bills were returned last
night to senders to be presented
later with vouchers.
Marie Churchill has been elect
ed to fill the vacancy caused by
the resignation of Miss liummcll,
as head of the Latin department,
at a salary of $150 a month. So
phia Townsend, who has been
teaching in the Washington junior
high school, has been transferred
to the senior high where she will
also teach in the Datin depart
ment at a salary of $140.
Teachers. Are Klcrt4d.
Others teachers elected to teach
in the lilh schools were Liiia
Heist, history, salary $140; Mabel
Garrett, salary $130; Khner Pen
dell. Teachers elecled to instruct in
the grades at salaries of $110 a
month are Addie Quesenberiy.
Maude Forkner, Leonella Smith.
ZHIa Landon, L'lla Deekensen and
Violet Rathian.
Whether or not these teachers
will accept the engagements of
fered, rem'ains a question though
it is expected that they are still
available and the malter of sal
ary the only one to be considered.
The coach for the next year is
as yet undecided.
Commercial Fishing is
Halted on Willamette
PORTLAND, Or.. May in.--I
The state fish commission fhi. at-1
ternoon issued an ord"r c!os:ntr .
the Willamette river to ull com
merclal fishing.
The action was taken i (llowiic
a prolonged session it ih-' com-
mission at which i voi v ph-ise of
the controversy wa? d s'ii-S'-d 'y
members of a commission and
representatives of interested r ac
tions. Members of the eonr'ii-M":!
said they were prompt: d to io.v
the river became they oelieve-i
that unless protected in this v-ayifonk is a ta'enled young singer
no salmon would reach the spawn-1 wno has been much appreciated
ing grounds above the falls tbisj0y salem audiences during the
year. . time she has studied at the uni
The order issued today becomes j . .
elective June 1. (Continued on nage 2)
PARIS DANCER
Mile. Evelyn Vaiiey, who has
4 :
IK iIim fx Mil
,'v":. 7'..? -I
j ;w. Tv - a i
iwl ml
til'
in?"" Rii
C L ' i A
I J' v "i ' sf vv- ' ' : I
introduce two new dances. These dances are known as the Portu
guese fad o and the Brazilian cavaquiho. Mile. Valley has" won the
Admiration of no-lens a distinguished personage than Kin Alfonso
of Spain, in whose royal presence
MILTON MILLER
TO
Collector of Internal Revenue
To Address Rotarians
At Luncheon
Col Milton A. Miller, collector
of internal revenue, will be the
chief speaker before the Rotary
club at the regular Wednesday
noon luncheon of the club today.
His address will be on "Federal
Taxes and Tiieir Relation to Our
Economic Situation." Colonel
Miller has made a deep study of
this subject.
Th club will also be visited
today by about 10 representatives
from Vancouver who are return
ing a visit from the Salem club
a short time ago, and five from
Albany, where a new club is sooa
to be organized. In the party lrom
Albany will be Mayor Terey
Young, who is well Known in sa-
lem. The Vancouver club is also
jusi oemg orgaui.eu.
The Salem Rotarians will send
a large delegation to Astoria on
May 1 I for the joint meeting of
the Portland. Salern and Astoria
clubs. Kntertainment will be pro
vided by the Astorians of which
a krip to Seaside wh"re golf, com
petitive games and other features
will be held for the. pleasure of
the Rotarians.
MarAucrite Cook and Nellie!
P, Stone Give Gradua
tion Recital
Tlo (ii.-t of the L-raduatins r -c.itals
to be j.-iven by students of
(lie School of Music of Willani-
' ttf'
; on
trite
university tlii year was the
1hI night -iv n by Margue
f'ook and Ni-lia V. Stone.
both of whom vxill receive their
diploma? n June. They were as
sisted Viruil Anderson and Lu
cile Ross, the former in a read
ier and the lat! t ith Mrs. Stono
in a number for two pianos.
Roth musicians showed finish
Mid mastery of their art. Miss
T
I
MUSIC 11
iflE PRESENTED
RARE BEAUTY
arrived in America and wbo will
she performed the shimmy.
Maxine Buren, Everett Crav
en and Fred Rodspjnner 1
Chosen by Faculty
Nominations by the faculty fo
the Albert prize, offered annually;
by Joseph H. Albert td the stud4
ent at Willamette university who
during tho year shows most rap-i
id progress were made yesterday
morning, Maxine Buren, 5 Salem;
Fred Ra2ptnner, Auror, Ind.i
and Everett 11. Craven, Salem, be
ing the three selected. The stud-?
ent body will select from; these
three one person, who will be
awarded the prize, within the
next two weeks. ;
The prize which carries'with it
i the sum of $2
T is awarded each
i year to the student having a rec-4
r! for faithful study and a scnol
arslup not helc-w the average, who
miring me scnooi year, opporiun-
j ities considered, hai; made tho
j greatest progress toward the ideal
in character, service and jwhoie
some influence.
Kacli year 30 days before com
mencement, the faculty of the uni
versity", nominates three students
for the honor and within tlje next
two weeks the students mtist se
lect the winner from among;; these.
No person may receive the prize
more than once. Mr. Albert of
fers a f omewhat similar prize at
I'uiMTsity of Oregon and to one
.senior at Salem hish sch o.
Among those who have wjon the
award in the past are Frederick
Mci'.nw. !!ju. lietijatnin Rickli,
r;l!t Mrll.- Ma-on. IMS., IUy
Atteiburv. 1917.
Robbers Steal While ;
Watchman Seeks Help
SI'OKANi:, Wash.. May
lit! v watchman who discov
ered a l.rolren window early'today
in it-'' jewelry store of Sartorl &
Wi Iff in the business district,
vent to notify the proprietors,
robber;: returned and took about
J.'joo worth of watches and, jew
e!r, the poli'e were informed.
( ) KKHENCK C.ILLEIK
SKATTLK, May 1 0 Tb Ta
rific WestUmnd conference which
i;- in session here will remain in
tact and continue its present
schedule of freight rates, it' was
announced tonight by C. C. Pay
mude, secretary. -The conference
is made up of shipping men of
Seattle and Vancouver.
iiuiiiis n
FOR ALBERT PRIZE
HONS ACCEPT
DEMANDS OE
IR VICTORS
Reichstag, By Vote of 221
To 175 Yields, to Final
Terms of Treaty of Ver
sailles, to Capacity, v
INVASION OF GERMAN
TERRITORY AVERTED
Dr. Wirth Tells Cabinet That
Labor Must Stand Brunt .
Of Great Burden "
BERLIN, May 10. Ger
many has accepted the allied
ultimatum.- I
The reichstag; tonight by
221 to 175, yielded to the fi
nal allied demands and agreed
tofulfill the terms of the treai
ty of Versailles' "to the ca
pacity" of the nation
Dr. Wirth, centrist leader,
finally succeeded in forming
a coalition cabinet, composed
of centrists, majority social
ists and democrats, ; which,
confronted by grave necessity,
speedily decided acceptance of
the ultimatum was the only '
course. In , making this an
nouncement to the reichstag
the new chancellor asked for
immediate decision and the
government was sustained.
The allied ultimatum required
"yes" or no'r reply. Th ultima
tnm was to expire May 12. Th
total sum Germany Is called on to.
pay is H.750, 000,000;, disarma
ment must be carried out la c
cordance jrith the treaty, and tn
trial of war prisoners must be put '
into effect. ' Numerous other im
portant terms will be enforced..
Non-compliance with the ulti
matum would have .subjected :
Germany 'to the occupation of thai
Ruhr ' and whatever other meas
ures were deemed advisable. ,
The nev cabinet is generally regarded-as
a makeshift? largely un
representative, but good enough to
accept tho ultimatum :. t , ' v .
' CocUlists ArelMvided f V
While tb cabinet obtained a
comfortable1 majority In the'reich
sUg. it has the undivided- sspport -of
!pnly the majority socialist and
clerical parties.' Members of the
othjer parties. It' Is declareU have
given it support as a makeshift
and are not pledged tp give -it par.
ilamentary support. A - leading .
democrat said: i '1."-- -
"The cabinet cannot last as It
is not on a broad enough basis to
carry out the financial and eco
nomic' problems' Involve In Ger
man acceptance of the reparations
settlement!. We- democrats have "
loaded Schltfer and Gessler to the ',
cabinet .reserving' the 'right to
withdraw thera unless the cabinet
is amplified to include the German
people's party." . ';
Dr. Wirth la tnfarorably-re
garded by the industrialists and
banking interests because he Is
closely associated politically with
Mathia Erzberger, his predeces
sor, as finance minister who ad
vocated a raid on capital, rather
than Indirect taxes to meet Ger
many's financial needs.
,;: Conservative elements In the
reichstag regard the cabinet as too
Socialistic and incapable of out
lining a policy whereby Germany ,
can begin immediately meeting;
the entente's financial demands.
Task Declared Grave.
The cabinet is the outgrowth of
iwo days of wild chads, in which
the parties met day and night.
and finally in desperation agreed
ttn an improvised slate, which nn- ;
derwent scores of changes and ad
mittedly never -could have ob. .
tained ratification had it not been
necessary to check the threatened -htente
military movements,
ii! In his speech in the reichstag
Kir. Wirth said:
"Our task in this grave hour Is
to obtain the decision of the
reichstag on the ultimatum of ,
t$e allied governments. In the '
protracted detailed negotiations
Ku have formed an opinion on
the contents and significance of
the ultimatum. In view of the
termination of the time limit I
ttiust ask you to express your '
opinion by an immediate decision.
There is no possibility for us
oiner than acceptance or rejection.
I AffcctiPictured.
"Acceptance means that we de
clare our readiness to bear in vol
untary Into or the heavy financial
burdens demanded-. Refusal would
however mean surrendering the
basis of our Industrial activities
and asa consequence,' dismember-
I Continued on page Jj, ,