", i, , . . . - - - - V- ' J'iandlpon(;Couiitie,'i : : ;i.!.Armf, l' ' -mlkAl ('''JJ' !'.' I, SEE THE MARKET .PAGE ft S&.i:fl!W-lS-..:: iwillt , mMJtwM : itiStftt i fv I' 4-''-ztf r-v 'y . : in food supply. : ! SEVENTY-THIRD YlJAR ' SALEM, OREGON, SATURDAY, MORNING, MARCH 1, 1924 .PRICE FIVE CENTS, V it pi I. i' It I' i it1 ill 1 I: I i Eorraer-Oirector of Veterans Bureau and' .Thompson Charged With Bribery i Report BfetJ v ' MUCH GRAFT UNCOVERED OUTSIDE JURISDICTION Permits for Liquor Were Ob. tained By Other Than At. torneys for Money I ClUCAaO. Feb. 29.- (By The Associated Press) Colonel Char les R. Forbes,! former director of the United : SUtea Veterans bu reau, and John Thompson, con tractor, of Chicago and St. Louis were named In- iour Indictments returned "today fcy f the -; federal rErand jury Vhlch-has spent a J,nionth inTe8tIgfcing charges of waste; graft and ? debauchery In connection with Col- Forbes' ad in"in1sfratIon. i I f;' t. , Forbes and Thompson Were nam- , ' ed. JoiatJy lii ' two indictments charging ''conspiracy to" tommlt bribery1, and offenses against the : goTernraent and conspiracy to de fraud . the; United States gOTern rnent.'' "Forbes was named alone In tho" third Indictment on a charge of accepting a bribe and Thompson J. a fourth charging that he bad Indirectly given ., a bribe. ' ' ' " f Report Filed . Inr a special report which ac companied too Indictments the grand Jury Indicated that -other sensational derelonments inTolT-fno lag alleged graft had been un- c6vered, Irat because, they were not within the Jurisdiction of the tourt had not been pursued. Wo'da-not feelthe specially Sunday morning all Salem report" said. 'tha ft would terra churches will sound a call for snp tne best' Interests of the govern- piles." Each church will handle its irient for thlsJury at this time to own donations- and will arrange make public the. details of these 1 transactions. This Jury feels that It will suffice to report that they J Involve: - v ' . t ; - '1 Speculation by one or more otficlala of th government where- In 'H har been asserted that offi- cial Information wa used for pur- poses j of speculation ; - ' "i-.-Thaf certain sums 6f mon ey' wer paid to two members In coBaress: ' ' ' ' ' "j That possession "of-the tile of -on of the departments " for about a' month waa bad by persons having no official connection with such department; , , "4-That money wasf- accepted by certain individuals (not attor- T.T' SSy-: U through their Intimacy with offl-l CU''W:,Bo.lth. -5-That money was coneciea A decreaae 0, more than J50, by cortaialhdlvlduals (not attor- 00() lg 8hown in the tax levy for neys)j forr obtaining' through such Urlon county according to the rntimacy permiis ior lBunicauBg liquors.1 The Indictments cnargea mai Forbes wblle director oi me vei- cfans' bureau receivea oriDe oi 1 $1000 and certain auaiwonaiiemoi i uments on ijreeiuEui iu contracts' to government work to , the contracting firm ot Thompson ; Black. of which Tnompson ana i Jamea W. Diack, deceasea, were , the heads. V i I for , state, county, county school ' The contracts wore to bo award- a s dllbrary, high school tuition ed, ft was .charged. In .connection Xund aad county road, being pure wlth i the building and equipping ly county, taxes' as distinguished ot hospitals, for soldiers Ior whicn 1 from . epetf!al taxes is $1,009, tlie rovernment appropriated $12.-1 5iS ,7 . These same taxes for the 000,000.'. .Charles F. Cramer, for- mer -general .counsel. ior tno du - rciui'iwho commuted: suicide after InvebllRalloTt of the? department Ws proposed, was named id the indictments ar hating aceepiea a tnWTf6m Thompson and oth .fi of '$100,000 (n'return for his approval of 'the contracts. Kilas Mortimer of PhUadolpMa, knneared before the senate t cbmmltteo which Investigated the veterans bureati and maue imiret and - who also appeared befoje the grand Jo ry was named ( Continued pae 4V THE WEATHER ORWGON:' rrobably fair Sat- iirday, gcutlo variamo wtnua. ' L LOCAll !VATHBR . , Maslmum tcmparatiire.55 ' .. Mlnmum',(chibcraturc, 39. RIu, trace. , ''4' ; niYcr.'O'feftlV''1 jH Atmosphere, cloudy. -'j, Wi;ncln.orthwest.r, ; DAUGHERTY DELAYED; SESSION Action Forced Over . Until Today RoW Un precedented for Exchange of Bitter Perso ! nalities ' and - Insinuations . of Misconduct Officials from White House Down Charged WASHINGTON, Feb. 29. The row over Attorney Gen eral Daugherty plunged the senate into a violent session to day almost unprecedented for the exchanges of bitter personalities and insinuations of misconduct. As a result, action was forced over until tomorrow on the proposal for an investigation of, Mr. Daugherty's official record. 1 The storm which broke about the investigation resolution of Senator Wheeler, democrat, Montana, swept over all bound-, aries of senate rules and decorum. There were charges and counter charges of attempts to "pack" the investigating committee; there were attacks upon numerous officials, present and past, from the White House down and upon the personal1 conduct and affiliations of presidential candidates and senators. i v.', - ; F6r more than five hours the nil TO BE SOUNDED Effort Being Made to Assist Needy Families Until Work "Opens Up In order to bridge the gap be tween the end of winter and the opening of the , fruit-picking sea sons, the Associated Charities is putting on a final campaign for supplies to assist needy families hare managed to weather the winter but who are now short of funds and supplies and who will suffer unless their condition is re lieved at once.'-7 , . for their accumulation and aeuv- ery. The First Presbyterian church hai already announced that it will receive Its donations Thursday night Other churches are expect- ed to state the time and place. - The greatest need at present is ior Deaamg, coon-iug uiensws,. clothing, vegetables and some act ual cash. DIE DECREASE - in TAX LEVY Tax Rolls are Turned Over io . Sheriff' 0 the UOUnty ASSeSS0' tjx roli5 ttrrned over the sheriff by the county assessor. The total tax for the county Is si,6io. j7 82 The for 1923 is .0076 as against 009 for the prev- ,ous n T vauation for 1923 was 1 43 120.134 as acainst a valuation of $4jt209,01, or an increase of $830,115. The t6taI amount to bo raised preceding year, amounted to $1,- mos,958.88. This i a' decrease in tiie prC8ent roll ot $97,363.21 for tne general county levy. .,. .Y -k-;-;-' ,?- i 1 :-. . WASHINGTON, Feb 29. A comparison .of income rate sched ules involved in tax fight Id theJ house- follows: The i Long worth compromise which" was adopted on final pas sage of the bill provides Normal rates of 2 per. cent on net incomes not in excess of $4, 0'00: .5 per cent ou net Incomes over $4(oao,.and not in excess of $8,000. and 0 per cent above that amouBf. ' v" " ' ' ' - ' " -Surtax's ratoHj 25 per cfnt lesi than (hos'e In ihe exlstlngllaw on the same firacMeta'slarUng it Itf per1 cent on the amount of income i k execs of; $ 1 0.0 0 0 up . to , $ 1 27- BILL IS flflflPTE PROBE VIOLENT IS HELD battle raged, amid frequent out bursts from crowded galleries de spite repeated warnings and threats from the chair. The sen ile recessed tonight with the de bate in full swing, but with adop tion of the investigation resolu tion in prospect tomorrow after another hectic period of discis sion. Most or today s Uattlelied was the attorney general's official records in various matters, includ ing the oil scandal. Many old charges were repeated and one new accusation was made by Sena tor Heflin, democrat, Alabama, who declared the attorney general had written a letter seeking to protect from his "unidentified re publican national committeeman pf the west." Senator Heflin said he had seen a letter to a western district attorney saying that any favors to the committee would be appreciated and adding that "he is pur; man." , ' Senator Wheelefrchargihg the attorney general with seeking to ''intimidate" senators,' added that President Coolidge lacked "sta mina" to call upon Mr. Daugherty for his resignation. Mr. Daugherty was defended by Senator Willis, republican, Ohio, Who asserted that the attorney general would be vindicated com pletely If given an Impartial trial The Ohio senator was the only republican to speak in Mr. Daugb- erty's behalf but Senator Bruce, aeinoerai, Aiaryiana, wane ex pressing the opinion that Mr. Daugherty was not qualified for his position, said It was yet to be proved' that he was not an honor able man. Says Labor Against Church Because it Is for . Capital PITTSBURGH, Pa.. Feb. 29. Labdr does not' think very much of the church' because the church does not think very much of la bor, delegates to the council of cities of tho Methodist Episcopal church were told tonight by War ren S. Stone of Cleveland, presi dent of the National Brotherhood of Loeomoitve Engineers. Trouble between labor and ca pital usually finds the influence of the church on the side of capi tal, said Mr. Stone, adding "and this la easily explained when you realize that they depend upon capital for their support and not upon contributions from the work ers. . ; 'The Protestant chnrch. as such has lost It i fondi 'with the com mon, people'. 'The working man is ho longer welcome In many of our Protestant churches. The re- verso is. true ot the Catholic rirurehv. No matter how lowly his position in tne social scale, no matter, how ragged ho may be, the doors of tho church always open to him." v ' ' '"We are largely to blame for this," declared Mr. Stone, "be crai!!" ministers arc qept busy pre paring sermons and have no time for the week day problems that FOUBK NOTIFIED UVAKHTKtfTON, Feb. Z9.-Cot Charles Forbes,1 former direcfof k the veterans bureau received word litre of. lils indictment fh Chicago arid Immediately -went la to' con1 fctence with James S. Easby-Smith bis : ouael UBOBITE TALKS AT CHEinCH MEETIIU DARING RESCUE r ACCOMPUSHED- BY SHIP CREW Norwegian Steamer Sent Men Ashore With Rope Other Men Followed VICTORIA, B. C, Feb. 29. The crew of the Norwegian steam- er TatJana which was driven on th rocks near Pachena point, on the west coast of Vanconver Island shortly after midnight Tuesday, crawled to saftey to a barren rock through icy waters hand over hand along a rope, members of the crew related When they reached here today, by the steamship Armen tieres. Anxiety reigned on the TatJana as she was leaking badly, the sail ors said, and' it was thought that she might slip into deep water any minute. Early in the morning Captain Molvig gave orders to make ready to get ashore. Sea man Samslng volunteered to swim to shore. A rope was tied around his waist and he jumped overboard I and after a long struggle reached ! rock near the ship's bow. The heavy seas threatened several wiues io uasu nim against tne rocks. STllQBFJF County - Wide Organization Will Work With State Chamber of Commerce Perfection of a county-wido or- ganiiation to cooperate with the land settlement program being car- nea on oy xne siaie onamDer oil Commerce, will be made Thursday J night at 7:30 o'clock, March 6, 1 by representatives of every' com-1 Mill IS SUBJECT , iMTjnii munity in the county who will I versity of California spoke to meet at the auditorium of the Sa-night, declaiming their views on lem Chamber of Commerce. Whitney 1. Boise, chairman of I the Portland committee, will out-1 line the project after which it will be open to a general discussion, Marshall Dana, special writer for the Oregon Journal, will 1bo be present, as will W. G. Ide of the agricultural department,' All of the communities represented by the Marion County community fed eration will be asked to have rep resentatives present for this meet-1 ing. As outlined by J. W. Brewer, general secretary of the state or ganization, the state is being or ganized by counties to complete the service inaugurated by the land settlement committee. This committee meets people upon their arrival in Portland, learns of their ability and needs, and then directs them to the secHion of the coun try where they will be able to ac complish the best results, it a man is used to farming an irri gated tract, ho will be directed to southern or eastern Oregon; pear men will be sent to the Rogue river country; prune men to either the Willamette valley or Umpqua valley, and so forth. Upon his arrival In the district he will get in touch with one of the county committeemen, who Will be selected for their ability to. see that he pays a fair price for his land and to be given an im - partial appraisal of the land. It has been estimated that approxi - mately f.OOO.OOO people will visit Oregon duriug 1924, and based on figures compiled by California. It is estimated that one out of every io w a prospective seiner. t is for the interests of this 40th man that the land settlement is directing its attention. Polk county orcS-nlaed this week and the committees were ap- nnlntnd Thn mpMinr attend- ed by large delegations from Dal- la. Monmoutn, lnacpcnocBce ami r ans tniy. Mr. Boise la a brother of Rrnbru I. Boir.e, and jhe son of Judire Boise, well known pioneer. He if a fermer Salem man. Incumbents Undecided About Leaislative Race .There Is a prospect that T. B. Kay will again be a candidate for membership in tli state legisla ture: L. H. McMahan Is In a doubtful frame of mind On the question:' Lloyd T. Reynolds and Otto J. Wilson are almost certain to be candidates to succeed them selves. The above four men comprised th Marlon coiinty delegation in the- legislature last session, and if they all run again, indications bow ; re that not more than twft or three other candidates will be the field to compote wlthMhem for the 'nomination. Blaina Mcj CdrL' Wbodbura attefnoy hbefcn mentioned as a possible candidate, bur-h H said Uo be In doubt as to whether be win enter the race MODIFICATION OF.EMB ARGO IS BEING SOUGHT Chicken Men of - California Want to Ship Day Old Chickens OAKLAND, Cal., Feb 29. 'The state department of agriculture moved today to obtain a modifi cation of the embargoes placed by other jstates ' against California cattle, small livestock, dairy pro ducts and other goods as a result of the foot and mouth epidemic in central California on the show ing that the epidemic is subsiding and strict measures hate appre ciably contracted (the area of in fection. Some of the embargoes weie said to be unduly strict. nine squaas moved among a number ot herds in Contra Costa and Alameda counties today, de stroying all infected cattle and swine. When this work is done it is believed the epidemic will have u virtually stamped out Petnluma chicken raisers, who are now in the midst of their sea - son for shipping newborn chicks. I have sent out a widespread appeal that existing embargoes acainst such shipments be removed as the care exercised in the shipments makes contagion impossible. i BoK Peace Plan Declaimed to Entire Continent 3a- IGlTi LISienS in . 1 1 1 i it i'uki-laau, eo. as. To an invisible audience that spanned the continent, debaters of the Uni versity of Oregon and the Uni- (the Bok peace plan. The , Oregon debaters were at radio station KG W, the Oregonian. Portland, and those of California fat Station KLX, the Tribune, Oak land. It was the first intercollegiate debate ever held by radio. The Californians took the affirmative and the Oregonions the negative on the subject: "Resolved, that the' Box peace plan should be adopted." At Btation KGW a powerful re celvlng set, as well as the trans mitting set, was used. The small gathering of persons in the radio room and the ' Oregon debaters were able to hear quite clearly what the California debaters wera I saying in Oakland. Rebuttals-were formulated and broadcast on th basis of the primary arguments a9 received over the radio. Decision as to the winning team Is to be made by vote ot radio listeners in the two states who heard the debate and wlll be an ftouhced March 9. The debaters Were Joseph A. Frazier and Walter A. Malcolm'for Oregon and Harold Chernish and Raymond Sanders for California. Many Salem radio fans were among those getting inside dope tn the Bok peace plan last night. I Many reported to The Statesman that both stations were easily picked up and the debater speech jes, easily heard J, g, (ay Confers With Mail- afrpr n Portland U 13111- bcr of Commerce PORTLAND. Ore. Feb. 29, T. B. Kay4 of Salem and Colonel S;.8:: conference here today with W. D. B. Dodson. manager of the-Port- land chamber of commerce, ard made a request that a committee of "business men be appointed to lend encouragement to tentative plans for the establishment of a linen and flax mill at Salem, ac cording to; Dodson. "The appointment of he or.v mlftce wa asked in order that conditions-may be studied ,to se If there is foundation for estab lishment of a linen mill." said Mr Dodson after the meeting. "The committee Is to ascertain whether iuf conditions in flux 'production are sufficiently sUble to. warrant es- I tabllshment -of.a. factoxju'; w Mr. Dodson added that netiou in 'naming the committee, wiiuld probably bo taken by the chamber noxt weok.- ncHnuuiLniifliiui UMI FLAX MILL PLANNED HERE Longworth's Compromise supported By House in surgents Mellon Sched ule Turned Down MANY EXCISE TAXES REPEALED IN MEASURE Surtax Rates to Be Cut One Fourth Under Schedule Finally Adopted WASHINGTON, Feb. 29. By a TOte of 408 to 8 the revenue bill was passed late today by the house. As "sent to the senate, the meas ure carries an income tax sched ule offered by Representative Longworth, the republican leader, as a substitute for the democratic rates. This was adopted 216 to 199, after the house had refused, by a vote of 261 to 153, to rein sert in the bill the original Mellon schedule. The Lrongworlh substitute, which was supported by republican in surgents who previously had thrown their lot with the demo crats, provides for a normal tax reduction to two per cent on in comes below $4,000, to 5 per cent on incomes between $4,000 and $8,000, and to 6 per cent above $8,000. It also would cut by one- fourth the present surtax rates, making the maximum 37 54 Per cent, on incomes exceeding $200,- 000. No increase in existing per sonal tax exemptions would be al lowed. Rate Changed The house also approved a pro posal for a flat reduction of 25 per cent on alt personal .ycome taxes payable tow year, two un successful efforts were made to eliminate this provision . Specific rate changes carried in the bill will not become effective until tax payments are made next year on income and profits of 1924, except those made in the excise levies which would go into effect 30 days after enactment of the law. In addition to the new income tax schedule, major provisions ot the'bill as approved today are A 25 per cent reduction In taxes on earned income, all incomes un der $5,000 being defined as earn ed for purposes of this reduction Repeal or reduction of many of the miscellaneous of excise taxes involving about 1120,000,000 in revenue-annually. Deductions Changed Tightening of the limitations of capital and gross income deduc tions which, it is estimated, will yield about $60,000,000 revenue annually. y Increases in the estate tax rates of about 38 per cent. Institution of a gift tax with the same ratesaas carried in the es tate tax. Creation of a board of tax ap peals to decide tax disputes be tween the treasury and tax pay ers. Opening of the income tax re turns tq inspection by certain con gressional committocs- llouse leaders admit that the bill undoubtedly will be altered in important particulars by the senate. The decisWc recotd vote by which th5 Mellon rates were rejected today, however, makes it certain, they say. DALLAS DEBATE Both Affirmative and Nega. live Teams Win Severance Tax Argument Both the affirmative and the negative debating teams, of Salem high school won from Dallas high school last night in a dual debate, taking the contest both here and at IaHas by votes of 2 to 1 by tbo judges. ' '' The Question debated was: "Re solved. That the severance tax should be mado an issue' in local and state taxation" The Ealcm affirmative . team was Benoit McCroskey and Edgar Tibbcts, and the negative ; team was Elisabeth Fairchild and Ber- nlce Mulvey; am WINNER OF FRIDAY IN WASHINGTON Plans were announced for tak ing Up next week in the house the bill for leasing Muscle Shoals to Henry Ford. An i Increase In tariff rates on wheat as a result of the tariff commission's Investigation was forecast at thfr White House. After five hours of bitter debato the senate recessed until tomor row without .voting on the resolu tion fo investigate the administra tion of Attorney General Daugh erty. It was announced Attorney Gen eral: Daugherty would be r-jtained on the list of Coolidge delegates at large from Ohio regardless of the fight being made on. him in Washington. a The senate asked that income tax returns of a number of indi viduals and corporations connect ed with the oil Inquiry be opened to Investigation by the oil com mittee. The senate oil committee ques tioned A. Mitchell Palmer about his relations as attorney for Ed ward B. McLean , and further examined Karl C. Schuyler of Denver about leases ,of Teapot Dome territory. . '. . ' It was said at the White House that special government counsel would be appointed to inquire into the validity of title held by the Standard Oil company of Califor nla to sections of naval oil re serves. The sf ato department received reports that the American consu late at Ceiba, Honduras bad been fired upon by revolutionists and a detachment of marines rrom the cruiser Denver had been landed to act as consulate guards. Continental Life Not- Allowed to Alter its Policies in Oregon . Policies carrying deferred divi dends written in Oregon by the Continental Life Insurance com pany with headquarters at St. Louis, Mo., shall not be changed or disturbed, according to an agreement reached at a meeting of state insurance commissioner: and their deputies held "at the Multnomah hotel in Portland yes terday. . The action taken at the meeting was reported here last night upon the return of Will Moore, state Insurance commissioner, "who rep resented the Oregon department. Mr. Moore said that the Continen tal Life Insurance company had requested to change or transfer its policies written in this state so as to eliminate the deferred dividend feature.' He declared that the Mis souri insurance department bad been notified that this would not be allowed. In attendance at the meeting were 11. u. Fishback, insurance commissioner of the state of Wash ington; J. O- Rummens, chief deputy to Mr. Fishback; R. E. Daly, deputy Insurance commis sioner for the state of Missouri; Harry B. Smith, director of In surance for the state of Idaho; George P. Porter, auditor and ex- officio insurance commissioner of tho state of Montana, and Mr Moore. MONTANA WINS MISSOULA. Mont.. Feb. 29 Distinctly outplaying, the Univer sity of Idaho Vandals throughout the fray exeept for a few minutes in the second half and outfighting the visitors all the way, ' Univer sity of Montana's Grizzlies earned a 36 to 17 triumph in a conference basketball game tonight, the first of a series cloring the season here. UJU1DE , NOTICE TO OUR READERS The Statesman carriers will , call, to make their monthly collections today. , Your newspaper boy is just starting, in business, for himself . This is his first effort to learn business and his success or failure depends to a considerable extent on' your good will and co-operation. A pleasant smile ' and a cheery word will encourage your boy and help him make a success of this, his first venture in business life. He will appreciate it and show his good will in any ; way he can. . f. . If your subscription is already paid, ignore this no-'; tice and accept our thanks. STATESMAN PUBLISHING CO, Oil Inquiry Brings Forensic Encounter; Between Len root and Heflin Visit Is Cause CALL OF TWG SENATORS ON FALL LEADS TO ROW Smithers of White House Staff Is Storm Center at Oil Committee Meet WASHINGTON, Feb. 29 Inci dents in the oil inquiry were made the subjects of a stirring debate today in the senate which culmi nated in a. bitter forensic eaconn ter between Chairman Lenroot of the oil committee -and 'SCaator Heflin, democrat, Alabama, i . -Thia clash grew out of tne visit which Senator Lenroot and Sraoot, republican, Utah, mads to Albert B, Fall at a hotel here be- fore the former interior' secretary . J ; misled, the oil investigator by his statement that he had borrowed $100,000 from Edward B.. Mc Lean, publisher of the . Washing ton Posw ' Resenting what he, regarded as insinuations o( Senator . JUf lift that be had aided Fall to concoct the story. Senator Lenroot. de clared that "about the most des picable of human baiBgs Is the assassin of character'. " Clwgc Returned r -- - - ' Senator Heflin retorted that be could net think of ''anything: more despicable,"' than the visit 1 ot th senators 'to the "criminal charged under indictment." V '-! Called upon by Senatof Lenroot.' Senator" WaisH, chief prosecutor In I the , Inquiry saiJhecould see ; added that It would hare been, Va i happIcIrcumsUnce-!' irne son- i ators had promptly informed tha j oil committee all about It V Another incident of discussion was the employment b'y McLean of E. W. Smithers; chief communi cations office at the White Hou$e, to man the private wire the pub-: Usher had installed between ' hia Palm Beach cottage and the Post building here. Senator Dill, dem ocrat, Washington, calling atten tion to this, declared "the trail of this going the rorund ot the eie cutive'S office and seems even in his own office." . Denial Mado ' ! f Before the senate discussion got under way, the oil commlttejs heard flat denials ot several of the sensational statements . made .in telegrams sent to McLean la Flor ida by his employes In Washlngi ton. . - A Mitchell Palmer, attorney gen eral in the Wilson, admlnistratph who acted for a time as counsel for McLean, told the committee he had not asked Senator Underwood of Alabama or anyone else to bring pressure to bear on Senator Walsh, that he was not a "partner" of J. W. Zevely, attorney for Harry F, Sinclair and that he was5 not look ing after the interests of FalL YMCA Boxing Classes ' 1 Attracting; Interest There Is considerable Interest In the mens' boxing class recently or ganized at the YMCA, 'according to Bob Boardman, physical direct or. These classes arc ( held be tween 12 o'clock and 1 o'clock Tuesday and Thursday noohs. Several business men have already enrolled and there is room and op; port unity for more. ; "These classes are not rough," Mr. Boardman said. "Boxing,' is one of the best physical exercises and we do not engage inf any prize fight stuff.. We box and that is all- No man, is too old to learn to defend himself." 3 ' 3 -1 .M :j 'I ! , I , 8