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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 24, 1922)
:' " CCTOAT10 AMf JMnWJ , Jv 22 r , . fcdr 5557 pr 8Jr ; 510 i.nr for 6 mouth eudioc Jaoutrr Ta Statesman metres the leased wire . report of the Associated Press, the. greatest and most re liable press assoclatloa la the world. E .i 1922 g.'r on'r -s- sr,02 " Sunday 6106 , SEVENTY-FIRST YEAR SALEM, OREGON, FRIDAY M ORNING, FEBRUARY 24, 1922 PRICE: FIVE CENTS m m , - - i .. : ' . 1 . - nnr liniinrn life Five Big Brokerage Firms Swept Into Bankruptcy ka Result of Fai ures in Speculation. ASSESSORS MEETING HERE IN FAVOR OF UNIFORM TAXATION General Property and Livestock Levies Are Discussed at Gathering of Western Oregon Officials Semi-Annual Conferences Planned Nickell of McMinnville Elected President, Holman Secretary 4-POIfi PACT LL FOOTRA II SESSION Administration Move for Compromise on Reserva tions Fails of Success in Committee. IMERICAN CUSTOMERS SUFFER HEAVY LOSSES Jwelve of Thirty Breaks t Since First of Year Show Fraudulent Methods i NEW YORK, Fen. Z3.-FInan- clal storms In speculative Wall Itreet, which swept ' the broker to firm of Kardos & Burke into HJankruptcy last night, hit four mors nouses lousy. m Involuntary petitions in Danjc fUDtey were filed in federal court against: , S. S. Ruskay L Co.. liabilities estimated at $2,500,000 and as sets at $1,500,000. L J. W. Ball k. Co., liabilities es timated at 1150,000 and assets at SlO.tOO. Rodney t Co., liabilities and jtssets not given. The New York Curb market announced the suspension of Ras fnusien A Co. for alleged failure Jo meet Its engagements. Irregnlarities , Reported A steady stream of failures tor the last month with resultant he&vr loss to customers through out the United States and Canada recently led : District Attorney BantOBt to start an . Investigation di alleged Irregular practices .-by brokers, the most common of whlca.waa alleged to be the "hue-; ketlag" of orders. . ' ;' at 10 odd firms that have gone Into bankruptcy, since the. first of the year, 12 have been . found Dy grand; juries to have operated .In a manner to , win indictment of tome of their members. Nineteen nersons are under indictment and several - of them are reported to nave disappeared- from tne city, . Rurko Held High Poet TJntiBual attention attaches to the . Kardos at Burke failure be rmiBA nf the' Junior member of the firm. John Burke, was treas irer of the United States under ex-President Wilson. He resign ed that nost to go into business with Kardos, a 28-year-old broker who started in Wall street eignt years ago as svllO a week, mes senger boy, : 4t. vl Kardos. son of a wealthy Chi eagoan, was reported out of the tltr today. Burke said he under stood his partner had gone to a suburb for a few days, . Agreement Iron Clad Burke said : his contract with Kardos ' had an Ironclad proviso that neither member of the firm Should engage in trading on his ?wn account nor engage In any rading on the exchange without the other's consent. Although he admitted he had not followed the 6ffalrs of the firm closely, he de clared his belief that Karoos naa it no to the letter of the con- tract. Burke said he had lost verythlng in the crasn. County assessors from 10 counties in the Willamette val ley assembled in Salem yesterday, at the call of O. A. Steel hammer, Marion county assessor, to discuss a more uniform system of taxation for counties in this part of the state. Among assessors it is felt that with general personal property and stock on farms, as well as farming property, there should be a uniform assessment in this part of the state where conditions are similar. conference yesterday are as fol lows: C. L. Tallman of CorvalHs. for Benton county; W. IV Cook or Oregon City, for Clackamas county; H. E. Walger of Eugene, for Lane county; J. S. VanWinkle of Albany for Linn county; Oscar A. Steelhammer of Salem, for Marion county; Fred J. Holman of Dallas, fof Polk county; James A. Davis of The Dalles, for Wasco county; W. W. Nickell of Mc Minnville for Yamhill county and J. E. Carpenter of HiUsboro, representing W. F. Boley, the as sessor of Washington county. ! SCENE MOST STORMY SINCE VERSAILLES ROW In order to bring these condi tions about, it was thought that a series of meetings should be held by assessors for a general conference from time to time, and yesterday it was planned that these meetings 'should be held at least two times a ye.-tr. In order to form a permanent organization, officers were elect ed and W. W. Nickell of MtMinn vllle, assessor for Yamhill coun ty, was elected president and F. J. Holman of Dallas, assessor for Polk county, secretary. Assessors who attended me MORE KNOTS II BONDS STATUTE TO, BE UNTANGLED IN COURT BY FRIENDLY SUIT: HASTE ASKED FIELDS STORY NOT VERIFIED, BY OFFICIALS 4 CHARGES ARE LODGED ON RICKARD Bail of Fight Promoter Raised to $25,000 Relative to Assault Allegations Revised Draft Presented by .Senator Lodge Without Recommendation DALLAS MILL i ; r X OFFER IS NOT BY; FLAX GROWERS The Offer of-citizens of Dallas to sell the mill site in that city to the Willamette Valley Flax and Hemp Growers Cooperative asso ciation was not accepted by the directors of the company, follow ing their inspection of the site Wednesday. : The warehouse and buildings are suitable, but it was found that the company would need more land. For this reason, it was decided by officials of the company and citizens of Dallas that efforts - should be made by which more land adjacent should be acquired. In the Rickreall-Dallas-Inde-pendence district, there has been signed up a total of 356 acres for this year of which 273 is for a five-year period. The Tnrner-Aumsville and West Stayton district has signed 517 acres for this year of which 279 are for a five-year period. While no authority was given for the statement, it is understood that Turner will make a bid for the first flax plant in the way of taking $10,000 in preferred stock. HI I CLUB IS ORGANIZED BY YOUTHS AT JEFFERSON Chinese Tragedy Staged " on California Seed Farm mol.TjISTER. Cel.. Feb. 23. ' t fhtnnaa f nrpman of JT7h Alorse Seed company's ranch 5 I Vll1s1 nAflr nen. was buui . I late today and Hun Can, a labor r. was shot and seriously wound ; d br Ynne Ley Ho. who after r the shooting, Inflicted probably " .fatal wonnds upon himeslf with a knlle. rung lxj no, aM would clve no motire lor the shooting other than "he did not like the men." Yung ly Ho is said to be a ember, of the Hon Sing long. 'and police expressed belief that I Wong Lyn's death may be a tong latfalr. 1 ! V Edwin Socolofsky, returned last night from Jefferson, gratified with the success of the Hi Y club organization meeting held there early in the evening. The ciut was formed with eight members to begin with, but a number of Others wanting to come in. Uns sey Doty was chosen president, Keith Allen vice president, ana Lloyd Arnold, formerly of Salem, secretary and treasurer. Ernest Powell, a live-wire mall carrier out of Jefferson, is their choice for adult leader, and after the organization the crowd visit ed him and he signed up for the job. Roys Meet Weekly The boys are to meet weekly to discuss school aand moral prob lems .to do a little systematic Bible study, and to have an ad dress on some timely topic by some one whom they feel will briny them a big message. Rev. E. IJ. Lockhart of Jefferson, who has traveled widely In Europe and in many parts of the world, is to address them at their first regu lar meeting, next week. They will probably meet in the Tandy real estate office for a while, until their number grow beyond that size. S. It. Tandy, recently elected as a member of the Marion Coun ty Y.M.C.A. committee, is active in helping the movement along. ong Task Ended. Mr. ocolofsky reports that they found it a long job to arouse in terest in Jefferson. One good man averred that "There are no bad boys in Jefferson; we don't need WASHINGTON. Feb. 23 An administration move for a compro mise on reservations to the four power pact treaty failed of im mediate success today after it had stirred up a spirited debate in the senate foreign relations commit tee. Coming directly from a confer ence with President Harding, Chairman Lodge of the committee laid before his colleagues a re vised reservation declaring in spe cific terms that the treaty does not contemplate an "alliance" and was drafted to take the place of the blanket reservation to which a majority of the committee mem bers previously had indicated their support. Session Is Stormy Those who had sponsored the original blanket qualification im mediately opened fire on the new reservation and the hour of debate which followed was described by senators present as the stormiest passage witnessed in the commit tee since the days of the Versail les treaty fight. Senator Borah of Idaho, and Senator Johnson, of California, among the republicans, and Sen ator Pomerone of Ohio, on the Democratic side, were said to have led the opposition to the adminis tration proposal, while all the other reservationists reserved fi nal judgment. In his advocacy of the modified draft. Senator Lodge was seconded by Senators Kellogg of Minnesota, and New of Indiana, both republicans. Breach Still Wide Without taking action, the com mtitee adjourned until tomorrow and various groups began confer ence in the hope that more sat isfactory ground for compromise might be found to prevent a long reservation debate in committee consideration of the treaty. To night the opposing elements ap parently were no nearer together than before. j The precise attitude of the pres ident regarding reservations was not explained to the committee by Senator Lodge, but members gain ed the impression that Mr. Hard ing was not disposed to the blan ket proposal introduced several days ago by Senator Brandegee, Republican, Connecticut, and now awaiting action. It was indicated clearly that the White House would like to jtee all reserva tions voted down, but failing that, would continue to seek whatever softening appeared possible in the reservation proposals. Every Move Cautious In developing their position, however, the administration lead ers are moving warily. Senator Lodge did not present his revised draft to the committee today as an administration proposal NEW YORK. Feb. 23. "Tex" Rickard. sports promoter, tonight was under four indictments charg ing him with misffandect with four school girls whose ages range from 11 to 13. Two of the indictments, alleg ing abduction of Nellie Gasko, 14. and Anna Hess. 11, were returned today by a supreme court grand jury. The other pair, handed down several days ago, charged the promoter with criminal as sault upon Alice Ruck, 14, and Sarah Scboenfield. 13. Justice Wasservogel raised Rickard's bail today from $10,000 to 125,000. The promoter plead ed not guilty to all of the indict ments and supplied the $25,000 in cash. District Attorney Banton asked for 150.000 bail, saying he un derstood Rickard no longer was connected with his business in terests In this city, including the management of Madison Square garden. Immediately Max D. Steuer, the promoter's lawyer, ar gued that Rickard was .anxious to remain in New York to estab lish his innocence and would stay here to that end. Today's indictments alleged that Rickard abducted the Gasko girl on November 12 last and the Hess child on December 18. th latter date, being the one on which he was accused of assaulting her companion, Alice Ruck. Another action before the supreme court to clarify legal points' in the state bonus law will be launched shortly by the American legion acting in conjunction with the state bonus commission, it was learned here yesterday at headquarters of the commission. A number of important points are in volved which will have to be brought into court by man damus proceedings, it was stated, and the commission has elected to have this action expedited in a series of friendly suits instigated by department officials of the ex-service men's organization. s What use can be made of the money received under the loan feature of the bonus law. This is cited by members of the commis-j sion as the most important point to be settled. It is known' that this would have been before the supreme court long ago except for the danger of affecting the pending sale of bonds under which the first funds are being raised for distribution. Now that the constitutionality of the law has ben determined and the first bonds disposed of. delivery or bonds being now ready for com pletion, the incidental legal tan gles will be unwound as rapidly as possible. Xo Delay Paused These suits, coming at this time, will in no wise operate to delay bonus payments, it was ex plained. Thousands of checxs are now being written for casn bonus settlements and the loan machinery is actually in operation with appraisers on the job all over the state, and a genral dis tribution of funds will be made the moment the funds from the sale of bonds are actually in the hands of the state authorities for distribution. Pending a supreme court inter pretation of the law loan pay ments will be limited to building, improvement, or buying of homes and farms. Without further le gal authority the commission finds itself unable to go further than that. In fact there are 3-PLV DEBATE IS ON TONIGHT those who believe that the courts may place such a limitation on the use of the loan money. Others contend that the limitation de prives a large- number of service men from the major benefits un der the state law Other Questions Up Another moot question that will have to be Interpreted by the courts is whether or not non-resr dents are entitled to receive t bonus in any form. Still another question is wheth er or not relatives of dead ex service men who lost their lives in war are entitled to receive the state loan. While the commission has traced the intent here as be ing against the loan to relatives there are members who believe that the wife or dependent rela tive of a man who was killed in France should have the same rights as the wife of a man who fought in the spruce division. Several conferences between members of the commission and representatives of the American le&ion have occurred in the past few weeks and a plan of proced ure agreed upon'. The same plan will be followed as when the constitutionality of the law was tested last fall in order to sell the bonds to raise bonus funds The commission will turn down certain selected claims and will be mandamused by a represents tive ex-service man in order to get the case before the Supreme court for final, classification. Salem Negative Team Jefferson, Affirmative Meets Silverton Here to (Continued on page 6) BLIND SCHOOL HEAD FOUND EFFICIENT By C011TTEE The special committee appoint- ter Meyer should be dismissed. Uioer reconinieuuanwus u report are In substance as fol- Wftman Wparv! Lnses Mind: u W vll lUI I we J J w v w w r 5 Set Self Afire; Is Dead A. SANTA CRUZ., Cal.. Feb. 23. Mrs. Frank Zanelli. 35, died to I day of burns received yesterday when. according to neighbors, she ! went to the front yard of her ; home, saturated, her clothes with foil and then deliberately set her i self on fire. The woman had f staffed a towel In her mouth to 'prevent outcry. 8he is believed to have been I affected by the strain of a 10 day vigil at the bedside of her s daughter who was seriously ill. . , . . . WEATHEB ' Friday fair: fresh to moderate ed by the state board of control to investigate conamons at the Oegon Employment Institution for the Blind in Portland, has filed its report after 12 confer ences! and upholds Superintend ent and Mrs. J. F. Myers, declar- inr that Superintendent Myerj is entitled to great credit. "We do not find," says the re port, "Mr. and Mrs. Myers to have been at fault in tne present trou ble, nor has anything been estab lished in this hearing that would warrant their dismissal." Dismissals Arf Reviewed Relative to several inmate who made complaints and other wise caused trouble the report says: "The dismissals of Charles J Bishop, O. L Johnson and Ellen Silverson, hereto ire made by he board of control and the super Intendent should be made im mediately effective, and, in addi tion, Charles S. West and Syll able to the president, nor did he formally offer it as a substitute for the Brandegee reservation. He is understood to have only "sug gested" it, without committing either himself or Mr. Harding to Its support. The text of the new reservation also was held in confidence and members of the committee said I they had promised not to make it public. It provides, briefly?. that the treaty is not understood Salem high school debaters will meet their first district contest- tant tonight when they will en gage in a triangular debate with Silverton and Jefferson. The Sa lem negative will go to Jefferson while the local affirmative will remain here to defend the school honors against the Silverton negative. So far, the odds have been dis tinctly against the red and black orators for they have prepared for- debates twice only to have them cancelled shortly before the appointed time. While several other schools have already won the championship for their dis tricts and are preparing on the question for the state champion ship, the Salem teams have not entered their first district debate. The debate tonight will be de livered on the subject "Resolved, That the Prumn Plan of railway accept- control and management should Willamette Women Debate With Britishers Tonight Tonight at 8 o'clock the wo men's debate team of Willamette university will talk for honors in the first debate of the season. The University of British Columbia will meet Willamette in a verbal encounter, the first international meet in the history of Willamette forensics. The question. "Resolved, That the western nations and Japan are justified in refusing to relinquish their territorial rights which they hold in China by traty," will be upheld by Miss Lorlei Blatchford and Miss Louiso Jougbin. Miss Sallee Murphy and Dorthy Walsh will hold the negative side of the question for the University of British Columbia. nvestigation in Los Angeles Fails to Bear Out State ments Made by Drug Fiend in Detroit PRISONER ONCE HELD IN WALLA WALLA PEN Names of Film Notables Telegraphed to Califor nia Authorities ED RECALL NIPPED IN Petitions to Oust Officer Not Acted Upon Monday California Sends Man To Narcotic Conference be enacted into law." The debate here promises to be an especially lively contest. The local team will be upholding the arrirmative which is the nlost difficult side of the question and which forces the speakers to rely largely upon bril liant oratory and rebuttal. Ward Sov.thworth. who will deliver the rebuttal for the Salem high team. is one of the most capable rebut tal speakers that the high school has ever had, while he is to be op Governor Stephens of Califor nia has notified Governor Olcott that his state will be represented at the narcotic cof nerence in Port land March 4 by J. S. O'Callaghan of the state board of pharmacy. Governor Hart of Washington writes that in addition to himself his state will be represented by Canon W. H. Bliss of Trinity Parish church, Seattle: Thomas P. Revelle, United States district attorney, Seattle, and Harlan I. Peyton, chairman of the White Cross society. Spokane. by the United States as forming Dy a team which is reputed InwR Immediate provision and equip ment of additional shops for in struction and work in Droo.i making, rug weaving, massaging and other work that the blind are able to do, together with addi tional teaching force. Better Home Needed Immediate provision of a Per" manent home for the institution. Monthly reading to the inmates of the rules and regulations of the board of control governing the institution. Instruction to the superintend ent as to what police power he should appeal to in case an in mate refuses to leave after re ceiving order of dismissal. Simple gymnastic and recrea tional facilities. ' The members of the special committee are Otto R. Hartwig, an "alliance or as committing this government to use of force. or as providing for the exercise of any power by this government except through the usual proces ses laid down in the American constitution; It's language flo- lows almost exactly the words of the president in laying down the treaty before the senate to be unusually strong. Benoit McCroskey, his collegue, is a new man this year but is a strong and convincing speaker. The team which the local school is sending to Jefferson to meet the Jefferson affirmative is com posed of two letter men from the team of last year, Ralph Emmonv who spoke with Robert Littler throughout the season last year and Kenneth Perry, who spoke as n dtprnatn nn the team last is Given Bluebeard I year. The debate at the high school tonight will begin at 8 o'clock in the auditorium One Chance for Life (Continued on pate 6) PARIS. Feb. 23. Henri Lan- dru. the "Bluebeard of Cambals." whn was to have been guillotined this week for the murder of 10 uomen and a boy, has Deen given a additional few days or grace Mcro-Giafferi, his chief counsel- WOMAN IMPLICATED GRANITE CITY, 111.. Feb. 23 With a young woman driving lor, during the trial presented to their automobile, bandits held up President Millerand further ar- nuucu iuu ui vUU., y.-- Th nresldent nrom- pneiur oi a son unus. jjuhui tuiuiuw r - I . . ..u C.a ronilor a decision within 4uuu. Tne gin, it was saia. was - for iIiti nnnn tlie anneal tor aooai years oiu, uenuj i- V " " V - W ' " I . , , . . J i 1 1 commutation of Landru's sen- urea ana appearea aaepi iu tence iuuug u huiuiuuuuc. BOAT TAKEN BOSTON. Feb. 23. The auxili ary schooner Gracy and Ruby, a former fisherman, was overhauled by the coast guard cutter Tampa today after a chase along the coast of the vessel from which 0,000 worth of whiskey and gin was transferred outside Salem harbor yesterday. SEVEN KILLED MINNEAPOLIS. Feb. 23 Sev en persons were reported to have been killed and a number injured tonight when the Winnipeg Flier on the Great Northern railway was struck by a snowplow near Delano. 30 miles west of here. Efforts to recall Traffic Officer Fay JIarned of Woodburn made little headway at Woodburn Mon day night, although a petition for Harned's recall" had been present ed at the council meeting during the evening, it is reported. Mayor J. J. Hall, of Woodburn, gave little encouragement to the petition. Friends of Harned had' prepared to fight the ousting pro cedure, asserting that, agitation against Harned is based upon the latters arrest of several individ uals who claimed immunity be cause of official or financial prominence. Friends of Harned assert that the city's present method of re munerating traffic officers should be changed anad that the "speed cops" should be given an adequate salary. LOS ANGELES. Feb. 23. Mabel Normand, film actress, is critically ill, her physician ' announced tonight, according to a story the Los Angeles Examiner will publish to day. The crisis in her case was expected to be reached soon, it was stated. Miss Normand was said to be suffering from "an aggra vated case of influenza" fol- lowing a nervous breakdown resulting from the murder of William Desmond Taylor, film director, and one of her dose; , friends. Miss Normand, who was one of the last to see Taylor alive, collapsed at the funeral. Although she was revived suf ficiently to respond to a sum- -mons from Thomas Lee Wool-' wine, district attorney, to be questioned as to any dew she might be able to give to, the murderer of Taylor, she short Iy afterwards left her Los An l geles residence for one in Al tadena, a suburb of Pasadena, Her parents who recently arrived from New York an4 two nurses are with her. Her physician said he had "hopes for her recovery," but expected the crisis tonight. Los Angeles, Feb. 2X A ChJ- neie bearing the name of Wong Ijp the Mim m that of the Uhlnme said by Hairy M. Fields, in lHtrolt, to have been a mem- -Iter of the group of thrwe pernons he drove to the home of William Immond Taylor, the Bight the film director waa murdered left Lo Angeles Chinatown two days ago, ft waa announced tonight by the sheriffs deputies at work on the case. Tf le officers said they had noth ing to lead them to believe that the Chinese had anything to do with the, slaying of Taylor, bat they pointed oat that his depart ure wm fflmultaneou with the first intimation from Detroit that Fields might have Important evi dence to offer. LOS ANGELES. Fe. 23. Los Angeles authorities said tonight they had been unable to verify any of the statements bearing on the murder of William Taylor, film director, alleged to have been been made in Detroit by Harry Continued on page 6) ED BARRY If! FOUND GUILTY BY JUSTICE TR1BUNA FIVE IN HOSPITAL NEWPORT NEWS, Va.. Feb. 23. Five men are in the hospital at Camp Eustice as the result of an explosion and fire last night. CRAIG ARRIVES BELFAST, Feb. 25. Sir James Craig, premier of Ulster, arrived here today from a tour of inspec tion along the Ulster border. He expects to go to London Friday "A clear case against the ac cused." This was a Juror's statement last night following a verdict of guilty returned by a Justice court Jury against Ed Barry, who was recently arrested by Police Ser geant Birtchett following a raid by Chief of Police Moffitt. Barry refused to take the stand in his own behalf after Lester McConkey. "surprise witness' for the state, had told of Barry's op eration of a still at 1205 South Fourteenth street during the month of January last. Barry Proud of Still McConkey told the Jury' that Barry had been so proud of the huge still seized by Chief Moffitt that Barry had called in S. Al. Sanderson, local photographer The photograph made by Mr. Sanderson was the one seized by officials and used as state's evi dence. McConkey told the court. Walter DeLong. constable for the Salem district, was called to the stand and said that he had made efforts to serve a witness s subpoenae yesterday upon San derson. Constable DeLong testi fied that Sanderson could not be found and that be was reported to have "left the city for the day." Picture Plays Part Next to McConkey' testimony. the picture played a part In con victing Barry, court officials said yesterday. This picture shows the still in operation and revealed its location as being at the South Fourteenth street residence, ac cording to experts who testified yesterday. The still is the largest ever seized In Marlon county. Part of the equipment was found in a hoduse at 319 South Eight eenth street while the remainder was unearthed by Chief Moffitt in a lonely spot near Hopewell in Yamhill county. . Chief Moffitt was too ill to ap pear in court yesterday, his Ill ness being attributed in part to exposure and overwork in con nection with the Barry case. Po lice; witnesses who gave strong- (Continued oa page t) easterly winds. -