TTie Board of Control Is With 680 Limatcsihfihe- Proceeding-ds There Are Indications Thai Itilsx Oiregoh State Penitentary Yesterday, There Were Only 39 Idle; 11 Being Women and 12 In Hospital Weather forecast: Fair; gentle variable winds. Maximum temperature yesterday 60, minimum 29. river 1.9, rainfall none, atmosphere clear, wind southeast. in The gentleman who insists that "all suf fering is in the mind" never ran his toe into the end of the chair rocker as he gal loped from bed to answer the telephone call for a wrong number. Philadelphia Bulletin. SEVENTY-SEVENTH YEAR SALEM, OREGON, SATURDAY MORNING, FEBRUARY 18, 1928 PRICE FIVE CENTS we SENTIMENT ALL OPPOSED TO S3 Lively Meeting At YMCA Forum Shows General Opposition To Plan ROAD PROGRAM PERILED Thirty-Four and a Half Million in Bonds to be Taken Care of, Pointed Out by State Trea surer Kay The Salem Y. XI." C. A. forum had a star performance last night in the basement room given over to such meetings. The subject was thf proposed $3 license fee. There were about 25 speakers in all, mostly making fiyfc minute talks.' They were all against the J3 fee proposition, though Rich L. Rei man took the negative, in order to draw the fire of the speakers who opposed that proposition. Mr. Rel- nian is actually not in favor of the $3 proposition, but he does favor a radical rearrangement of the auto license fees under the present law. Some Outstanding Talks State Treasurer T. B. Kay show ed what a disastrous thing it would be for the state to adopt the $3 idea. It would wreck the program for good roads in this state. It would leave the thirty four and a half million dollars of road bonds in the air. The state could not tax itself enough to pay the interest on the outstanding bonds and meet the principal of the maturing annual serial issues, because of the 3 license proposi tion would amount to a vote for repudiation. Mr. Kay read official figures -Showing tl fSefee TJ.a.'Jenger Rowing that the average cost in fees and gas taxes for eacl. car owner in Oregon is $40.03 annually, under the pres ent law. In Washington the aver age is 36.33, for the same, plus property tax on automobiles. In California it is $32.68. So the auto owners of Oregon, in their better system of roads, which they are paying for through their license fees, are getting better values on the average than the auto ownerr of ourtwo neighboring states are enjoying. Besides this, said Mr. Kay, the S3 license fee would be very un fair in that many car owners whe pay no other taxes at all outsidt of their car licenses would be get ting the benefit of our 100,000,- i Continued on page 2) BIDS ON BRICK CAUSE MUDDLE 8ALEM FIRM REALLY LOW BUT OFFICIALS ERR Fail to Figure on Cartage From Tracks to Dormitory Site, Shown "Contract" for construction boys new dormitory Chemawa will pro bably be awarded to United Ma terial company, San Francisco, pri- hntn Whnrtnn. TV I . says. Their bid was $4,600. Salem Brick and Tile bid was $4,800. In response to telegrams from Salem urging local bid,1 officials bureau of Indian affairs say no other course open than to accept low bid." The above FYI (for your infor mation) dispatch came tp The Statesman last night over the As sociated Press wire. There Is Controversy The contract Is not for the con struction of the dormitory. It is for the brick for that dormitory- it is for 297,000 brick. The bid ders were the Salem Brick & Tile ompany, Salem, and the San 'i ancisco firm named above In the wire. , The bids show that the Salem Mice for the brick delivered by truck on the Job is approximately 1 3 rents a thousand below the Cat ron ta bid. The Salem bid was ac I 4. by Superintendent Lipps of '"."tfbemawa school, on the basis f price, quality, service and low breakage due to short haul. The rh-ks are needed at once, and San f-'rancisco is a long way from Sa-i'-m. . . The Salem nroteets may possibly 'a use an investigation at Washing I tr, ton that will glTe the contract to the Salem bidder. It la evident that the Washington authorities have made some mistake in comparing 'he bids. The California bid is for he brick delivered at Chemawa on the cars. It will cost at least 1 2 a thousand to get the brick front the cars to the Job. AUTO TAX BILL COOKING SCHOOL REACHES CLOSE! MANY HOUSEWIVES AIDED BY METHODS DEMONSTRATED Cake Mixing and Baking Arc Fea tures of Iast Day; Re ceipts Useful After a successful four-day ses sion, the cooking school which has been conducted at the armory in connection with the Better Homes exposition, under the aus pices of the Vollmer-Clearwater company, the H. L. Stiff Furni ture company, the Willamette Gro cery company and The Statesman Publishing company closed yes terday afternoon. Mrs. II. M. Cummins and Mis Ethel A. Murdoch, the two cap able demonstrators whom the, sponsoring firms were fortunate enough to secure for the four days have given many valuable hints in meal preparation and time sav ing to the interested women who have been present each day. The capability of these two wo men combined with their friendly manner and engaging personali ties has won for Jhem many friends in Salem. The school has been conducted in the armory, the scene of varied ind interesting displays whict have been arranged by local, firms n observance of Better Homes Week. The exposition will con tinue open until this evening al though cooking school closed yes 'erday afternoon. Mrs. Cummins and Miss Mur loch have demonstrated the pre paration of practical and palate pleasing dishes in the modern kitchen which included attractive and up-to-date furniture from tlu H. L. Stiff Furniture company. Those who have heard it salt that the kitchen is slowly but surely going out of existence tr be replaced by an alcove hardly large enough to turn around in would certainly have doubted th truth of such an observation if they had been present at the cook 'ng school either Tuesday, Wed nesday, Thursday, or Friday af ternoon, for a large assemblage ot women, completely engrossed 'n. the-ia-trirarles-of f ood-trepra tion enjoyed the demonstration -n each day. Cake mixing and baking occu Died the attention of the 450 vomen in the audience as well at that of Mrs. Cummins' and Miar Murdoch yesterday afternoon. Mrs. Cummins displayed an at tractive "Checkerboard Cake" which she had made earlier in the lay. She was unable to mix and bake another for the pleasure of her audience because of lack of time. The recipe for this unusual "ake which is sure to make your quests exclaim with pleasure and receive enthusiastic greeting from (Continued on pt 3) ROBBERY ATTEMPT FAILS One Bandit Killed and Another In jured In Gun Fight PEELL, Wash., Feb. 17. fAP). One bank robber, George Allen, was killed and his compan ion, Robert Stevens, was wounded on the calf of his -right leg at 11:30 o'clock today when they held up the Peell state bask here. Three thousand dollars in cur rency, gold, eilver and nickels which was taken was recovered when Allen and Stevens were brought to bay 20 minutes after the robbery while attempting to make their getaway into the brush at Peel automobile park, a quar ter of a mile east of town. Viser, Peell butcher, with a 25-20 Viser, Peel butcher, with a 25-20 rifle. He was hit three times. Stevens, who had been wounded In a street battle with Cashier E. Lee Dunlap of the bank, immedi ately surrendered. The sudden downfall of the rob bero is attributed to the fact that in their eagerness to make their escape safely, Allen tore loose a burglar " alarm wire to prevent Dunlap and others in the bank whom they had tied up in the vault giving the alarm. MURDER SUSPECT TAKEN Eugene Police Nab "BlackJe" Mathews, Wanted In Idaho F.lTfiENE. Feb. 17. (AP). Walter Mathews, alias-"BUckie" n.r.t.va wantori In BurleT. Ida- " - ho, in connection with the murder there of John J. Terry, taxtcao driver, was arrested in a pool hall here tonight by police officers. He offered no resistance when taken and was not armed. . The arrest was made on the in formation of a former acquaint whn wont to the Dolice sta tion to complain that Mathews had stolen a fun from him some time ago. Tonight was the first time he had seen Matnews since, -nrv... .. tnld nolice the name. It was linked up with a poster from the Idaho town anu u -,f imA nolice to the. place There ht kmew Mathews to be. TRIO BURGLARY SUSPECTS HELD IN COUNTY JAIL Men Under $5000 Bail Each, Woman $3000; Waters Store Entered Here SUSPECT OTHER CRIMES Quantity of Merchandise Found in Anto When Group Arrested at McMinnville; Stayton Post office Robbed Fred Taylor, Wallace Crews and Marie Crews reposed in the county jail last night following their ar rest early yesterday morning at McMinnville for robbery commit ted at the George E. Waters wholesale tobacco establishment at Salem. Officers declared that a large quantity of loot, including money and valuables from the safe and cigars and tobacco from the stock, was found in the car in which the three were speeding through Mc Minnville when arrested. Arrest Early Friday The arrest at McMinnville was made at about 3 a. m.-yesterday, :he robbery having taken place shortly after midnight. The trio appeared in justice court here yesterday afternoon, ind asked time in which to consult an attorney. Their request was granted by Justice of the Peace Brazier Small. Bail for the two men was fixed at $5000 each and for the woman, who claims to be Lhe wife of one of the men, at f 3,- 000. Falling to furnish their bail money, all three were lodged in the county jail. That there is Btrong possibility tmrt-t he three-arrested 'yesterday have some connection with the re cent robbery of the safe at Bllgh's (Continued on page S.) PEACE OVERTURES MADE Conflict Between Sandlno and United States May End MANAGUA, Nicaragua, Feb. 17. (AP) Communications said to deal with terms of peace have been exchanged between Augusto San dlno, rebel leader and Rear Ad miral David S. Sellers, commander f the United States special ser vice squadron who arrived at Cor into yesterday. Letters said to include peace terms written by. Admiral Sellers for Sandino and dropped by air plane over Sandino's positions were received by the rebel chief tain. Sandino replied to the let ters, giving the terms under which he would lay down his arms, but the terms have not been given. I v Vi VHA 2 DEFENDANTS FOUND GUILTY VERDICT RETURNED AGAINST WHEELER, OLMSTEAD Misapplication of Funds Proved in Seusational Trial; Appeal Possible PORTLAND, Feb. 17. (AP) Emery Olmstead, former president of the Northwestern National bank now defunct, and J. E. Wheeler, former president ef the McCormick Lumber company, were convicted in federal court here today on each of 22 counts of an indictment charging specific misapplication of funds of the Northwestern Na tional. A sealed verdict arrived at 1:15 a. m., was read at the open-; ing of court today. The Jury had deliberated for 10 hours. The de cision was reached on the 15 bal lot. The two- defendants were ac quitted on the first count of the indictment, which charged con spiracy to defraud the bank in the manner set forth in the 22 counts. Under the law, the maximum penalty on each of the 22 counts on which Olmstead and Wheelen were convicted, five years in a fed eral prison, or a fine of $5,000, or both. The defendants were given 10 days in which to move for a new trial and 30 days In which to file a bill of exceptions upon which to predicate an appeal to the cir- (Continued on pj 4) M00RES FILES PETITION Announces Candidacy For Seat in State Legislature A. N. Moores of Salem Friday filed with the secretary of state here his declaration of candidacy for the republican nomination for one of the four seats In the house of representatives for the first rep resentative district. "A sound, economical and business-like administration of public affairs," is the slogan adopted by Mr. Moores. " Charleg 2. Randall of Pendleton has filed for the republican nom ination for the office of district attorney of Umatilla county. Mr. Randall requests that the following slogan be printed after his name on the ballot: "Justice without animosity. Ex perience applied to the discharge of public duty." DOESN'T ASK VERY MUCH Young Lad Sends Ambitious Re quest to Secretary Davis WASHINGTON, Feb. 17. (AP). Secretary of War Davis, who every now and then receives a letter asking for a pup or a ba by, got one today which exempli fied the martial spirit of young America. "Dear Uncle Sam: Please send me 10 battleships and one destroy er," read the letter in a child's handwriting. It was postmarked Mt. Vernon, N. T. CELEBRATING THE ANNIVERSARY THREE INDICTED LARCENY CHARGE TRUE BILLS RETURNED AGAINST FIRM'S OFFICERS Affairs of Dcfanct Brokerage Hoose to be Probed Before Federal Court PORTLAND. Feb. 17. (AP) Indictments charging larceny by bailee were returned today by the Multnomah grand jury against James P. Cooke, Charles S. Good win and Howard F. Philpot, offi cers of the bankrupt Overbeck & Cooke brokerage house which failed January 31. The three men surrendered themselves through t heir attor neys and posted bond. The specific charge against the three brokers grew out of the al leged conversion of 40 shares of Crown Willamette Pulp and Pa per company stock which had been left with the firm by J. L. Shepard. The Indictment charges the three men with converting this stock, valued at approximate ly $4,000 to their own use. The date of the alleged crime ie given as January 31, the day on which the firm closed its doors. No statements were made by the accused men and they could not be reached by telephone to night. All are In the city, how ever, their attorneys said. A statement to the effect that the Indictments were but an open ing wedge in a general Investiga tion of the affairs of the wrecked firm was made tonight by Stanley Myers, dietrict attorney. HOWARD OFF TO BOSTON State Superintendent to Attend National Meeting Charles A. Howard, state super intendent of schools, will leave here today for Boston where he will attend a meeting of the Na tional Education association. At a meeting of the national committee on research and secon-! idary d a oat ion, Mtv-Howard win represent the northwest associa tion of secondary and higher edu cation. He also will represent the northwest association at a meeting of the officers of five regional standardization associations. On Saturday, February 25, the superintendents will be guests of Henry Ford and the Massachusetts department of education at Suds bury Inn, the scene of Longfellows "Tales of a Wayside Inn." This property recently was pur chased by Mr. Ford. RESIGNATION ACCEPTED Argentine Ambassador to Wash' lngton, Havana, Quits BUENOS AIRES, Feb. 1T.- (AP). The Argentine govern ment has accepted the resignation of Honorio Pueyrredon, as ambas sador at Washington and also as president of the Argentine dele gation to the Pan-American con ference at Havana. CROWD SWEPT BY HUGE WAVE 7 PERSONS DIE Early Reports of Many Deaths Disputed By Lat er Announcements ACTS OF HEROISM MANY Accident Occurs Late Yesterday; Believed All Persons Rescued From Water by Other Craft Close at Hand SAN FRANCISCO, Feb. 18. (AP) Seven persons are missing from the 20 or more swept over board from the ferry boat Peralta. said a statement Issued shortly after midnight by an official of '.he Key System Transit company. William F. St. Sure, assistant to the company's vice president, issued the following statement: "According to the best accounts we have of the accident twenty persons were swept overboard and 13 have been rescued. We have nothing further to say at this time because this is all we know. We do not know definitely what caused the accident. We are still Investigating." Boats which cruised the scene of the accident reported that no bodies had been sighted nor had any victims been seen' struggling in the water. No reports of mlsstng persons had been received at the police stations. It was believed that had (Continued on page 2) 2 FLYERS FETED AT N. Y. Cowtes and Lebrlx' Honored By Americans In Big City NEW YORK. Feb. 17. (AP) The French aviators. Lieutenant Commander Joseph Lebrix aaJ Captain Dieudonne Costes at work md at play today won new trib utes for their flight from Paris tt New York by jay -of Africa and South America. "Between roundt of receptions in New York Captain Costes visited Mitchel field, where he Inspected the biplane that has carried him and Lebrix almost 25,000 miles since they left Paris four months ago. The two air men and William P. McCracken, Jr., assistant secretary of commerce for aeronautics, were guests of honor at a luncheon of .he direct air mail group of the advertising club where they were greeted by Captain Rene Fonck. French ace, and Frank T. Court ney, British flier. In the little time when they ant hot occupied with welcome engage ments, the French aviators are completing plans for their flight to the Pacific coast next week. A new motor to be installed in their Briguet plane, the Nunges-ser-Coll, was aboard the French liner Degrasse, which arrived to day. 1 PERALTA NEWLY BUILT Description Given of Fast Electric Ferry at Frisco SAN FRANCISCO. Feb. 17 (AP) The fast electric ferry Peralta, which went into a fatal "dip" while crossing San Fran cisco bay is the newest of the Key system fleet of electrically drivei boats. It was built in 1926 at the Moore Shipbuilding company Plant at Oakland. It was pro pelled by two huge motors which were powered by a steam turbln engine fed by oil. It was equip ped with wireless apparatus. It was powered by screws both fore and aft and presented the same open appearance from either end for speed in approaching the landing aprons. Reports tonight said the vessel was balanced by a system of water tanks and any "failure of the au tomatic con trolls to balance the passenger load might have caused the vessel to "dip" as reported by passengers. ADMIRAL HAS AUTHORITY Comments Made In Washington Circle On Pence Reports WASHINGTON, Feb, 17 (AP) Although it was said at the nary department today that no official advices had been received from Nicaragua regarding reported peace negotiations between San dino and Rear Admiral Sellers, it was pointed out "that the admiral, in command of the fleet In Central America, had authority to repre sent the United States In such ne gotiations. ASK ARBITRATION AS PEACE MOVE ABOLISHMENT OF WAR IX NEW WORLD FAVORED Major Committee Proclaims Prin-c-iple at Pan-American Con ference at Havana HAVANA. Feb. 17. (AP With the endorsement of the Unit ed States, compulsory arbitration was proclaimed today by a major committee of the Pan-American conference to be the key to the maintenance of peace in the west ern hemisphere and as providing a logical means for the settlement of international disputes. After a three hour session to day the sub-committee of the committee on public international law agreed unanimously on the report which calls for "an arbitra tion conciliation conference" in Washington within the next year to draw up a collective Pan-Amer ican arbitration convention. According to the report, the specific duty of the Washington convention would be to discuss the minimum exceptions to compul sory arbitration to which all countries would be expee'ed eventually to agree for the pur pose of excluding from such pro cedure questions involving their Independence, sovereignty, domes tic affairs and problems affecting third parties not signatory to the convention. The action in this matter served to a large extent -to detract at tention from Dr. Honorio Pueyr redon, who yesterday resigned as bead of the Argentine delegation He was reported to be enjoying a much needed rest at a suburban hotel and completing his ar rangements to leave Havana for Washington Wednesday. While he refused to discuss his immediate plans with interview ers it was understood he intends leaving Washington for Buenot Aires with the least possible de lay. He would make no comment is to the probable action of the Buenos Aires government on hi. resignation beyond pointing out that he had insisted his resigna tion be accepted. Just whom tht Argentine republic might place in his stead as ambassador at Wash ington or which course he planued to follow when once back a' Buenos Aires were subjects he avoided. 200 DEMAND PROTECTION Accident in San Francisco Baj Scored By Oakland Pastor SAX FRANCISCO, Feb. 17 (AP) Father E. T. McCarthy pastor of the Church of Our Ladj of Lourdes, Oakland, a passenge on the ferry boat Hayward which aided the Peralta victim, gave ar eye witness account of the acci dent. He said: "Water poured over the boa' of the Peralta as if it had dashed from a cataract. People wert swept overboard like dummies Men and women fought like mad It was eight minutes before a boa was launched from the Haywan" and then it appeared as thougr the deckhands did not even know how to row. The rescue work such as it was. was done almost entirely by the sailors of Goa Island. "I have a list of 200 names of people who will demand that ac tion be taken by the railroad com mission to prevent another such occurrence as this." LEVIATHAN GETS STUCK Huge Liner Meets With Mishap While Approaching Port SOUTHAMPTON. Eng.. Feb. 17. (AP). Commodore Harold A. Cunningham piloted the United States liner Leviathan safely through many a mine field and submarine zone during the World war, when he was navigating of ficer of the big ship, but tonight, on his first trip into this port as master, he got stuck on a sand bank. Although the vessel was in the hands of a Trinity House pilot at the time. Commander Cunning ham was in such a state of mind when v lei ted by the newspaper men that he pulled his cap down over his eyes hurricane-fashion and refused to discuss the mis hap. NEW INDUSTRY PROBABLE Track Assembling Plant May Be Located if ere. Stated . Salem -mar be selected as the site for a truck assembling "plant, R. Randall, of Seattle, a repre sentative of the Oregon-Ken worth company said yesterday. . V --, ; Randall is In the city display ing a truck at Ramseyer Broth ers, S44 Ferry street, v & The firm is ' new in the truck business In Oregon and is survey ing the - field . to see where the central plant is to be located. , The firm specialises in making track to order. - . EXTERIOR PLAN STATE BUILDING GETS APPROVAL Board of Control Will Seek To rtave Appeal To U. S. Court Abandoned COMPROMISE POSSIBLE Kay Will Go to Portland to Con for With Attorneys for Kau- -em and Western Lumber Co.; Slay Avoid Delay Approval of the exterior plans for the new state! office building to be located in Salem, and an nouncement that an effort will be made to reach an agreement with Wilson and Iteilly, attorneys for the Eastern & Western Lumber company of Portland, whereby the proposed appeal of the office building case to the United Statee supreme court would be aban doned, were Friday's development in this much involved problem. The Eastern and Western Lu ru ber company filed suit to restrain the state board of control from borrowing $600,000 Trom the state industrial accident commis sion to erect the building on the grounds that the state has no au thority to create a debt in exctws of $50,000. The supreme court. In a four to three decision, held against the lumber company. Kay Keeps Agreement State Treasurer Kay, at a meet ing of thft board of control Frl- lay, announced that he would go to Portland within the next wet-k nd confer with the attorneys. He ;aid he would carry a letter frcm .he state industrial accident eoiu ni(sIoners approving the propewd investment. The state treasurer Indicated that he would not object to any ninor amendments to the law au thorizing the loan iu case they did lot interfere with the plans of tbe joard of control to proceed with he erection of the building. Will Ask Karly Hearing In event it is not possible to each an agreement witn the at-! 'orneys Mr. Kay said he. would appeal to Oregon's delegation in congress to have the case ad vanced on the United Slates su preme court docket. The board of control Friday approved the exterior plan of the (Continued 91 1) p BETTER HOMES SHOW TO CLOSER "MISS SALEM" WILL BE AN NOUNCED AT IIP. M. Florence Miller Leading Night With Two Others Close Behind , Tonight is the last time that Salem folk will have an oppor- tunity to witneis the attractions at the better homs exposition that has been running at armory this week under au.-ipices of tbe Salem Realty board, and staged by Bolton and Smith of Tacoma. Again this evening the feature attraction on the program will be an attractive pretentious style show arranged by M. Buffe Morr rison of the French Shop. Tbe many gowns will be shown for the first time and are all the very latest word In elegance for mi lady. ' At 11 o'clock tonight the suc cessful candidate in the ".Mie Salem" contest will be announced . and car presented by, manager? of the exposition. First announce-' ment of the rote count was made last night, with Florence Miller in the lead. Bessie Blackley. and ,4 Amanda WIrlitsch stood second and third, respectively, at the early evening count. The largest crowd of the week gathered last night to see the at tractive booths arranged by local merchants for the better homes exhibit, and to witness the .pro gram of vaudeville, orchestra . music by Thomas Brothers, tbe auction of groceries, merchandise, and moneyes, the style show, and the Cottage Garden revue by5 Helen Rodolf. ' , . : A number of extra features will be addei to the program tonight andv famish delight aplenty to those who - had better hurry if they want to see the attractive display of new things to 'make ' home better. . "' Last . evening .; the doorman picked up a lost article that lead -, him to suspect some' ot theelder r generation are taking an Interest in these "new ' tangled" home -( pllances.. It wm a silver key, need to wind one of those 14 f ash toned watches : that t grand father displays. withpride. L: i I i t .. i . t 1