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Consolidation of Mackay and
International Interests
Published
NEW YORK. Mar. 26. (AP)
Formal announcement of a fusion
of Interest between the communi
cation systems of the Mackay com
panies and the International Tel
ephone and Telegraph company
was made here tonight by Clar
ence H. Mackay and Sosthenes
Beha, respectively presidents of
the two corporations.
The merger will bring together
a coai muni cation system reaching
to all parts of the Americas and to
European and Asiatic countries. A
wireless service to supplement ex-
i.o.cr fsMn and wire systems also
win be operated under the new
arrangement.
Tte plan, which is subject to
approval by the respective boards,
contemplates the formation of a
new Commercial-Postal company
under the chairmanship of Mr.
Mackay. The new company will
acq aire the outstanding stock of
the Mackay companies, which con
trol the submarine cables and
land wires of the Commercial Ca-
. blea and Postal Telegraph systems.
Eventually the formation, of a new
international Cables company, al
so ander the chairmanship of Mr
Mackay, Is contemplated to take
charge of the operation of com
merclal cables.
Terms of the proposed consol
idation embrace the exchange of
'three shares of seven per cent non-
camulative preferred stock of the
new Commercial-Postal company.
pirns one share of 9100 per value
of the capital stock of Internation
al Telephone and Telegraph com
pany for each four shares of Mac
kay companies common stock.
Tie proposed enlarged system
. will operate telegraph wires ex
tending throughout the United
States with connecting agreements
for business in Canada and Mexi
co; cable systems extending across
the Atlantic and Pacific and to
the important countries of South
America; telephone systems in
Mexico, the West Indies and South
America, and an organization en
gaged In the manufacture of elec
' trleal communications equipment
widely distributed throughout the
world.
Wireless communication to Hon
olulu is expected to be operative
by the company about the first of
June, and later in the jsummer
similar service to Manila will be in
force. These services will parallel
transoceanic cables already oper
a ted by the Mackay companies.
Extension of ship to shore wire
leas communication, and its trans-
mission Inland over wires now op
erated by the Postal Telegraph
system also Is planned.
E
Agriculture Committee Fav
ors Idea By Vote of 13
To 8, Yesterday
WASHINGTON. Mar. 20. (AP)
For the fourth time in fire years
the house agriculture committee
today approved the equalization
fee provision of the McNary-Hau-gea
farm relief MIL The vote was
IS to 8.
Preceding this action the com
salltee adopted an amendment
which, Chairman Haugen explain
ed, the federal farm board has
proposed, to endeavor to stabilize
the agricultural industry by means
of loans to cooperatives. In the
event that this should fail, it then
.would be empowered to pace the
equalization fee machinery in op
eration.
The vote on the equalization fee
casee upon a motion by Represen
tatfve Clarke, a New York repub
lican, to eliminate the proposal
from the but Seven republicans
a&d six democrats voted in support
or the fee while six- republicans
joined with two democrats in op
position. After the vote Haugen
aid that within a few days, pos
sibly tomorrow, the committee
trowld vote to formally report the
measure. He predicted , that this
motion would be supported by pro
bably 19 members.
.... The committee approved the
canalisation fee first in 1124;
again in 19XS, 1927 and today. In
1925 the proposal was not acted
apon pending the fate of legisla
tion recommended by the farms
conference called by President
Coolidge.
" The senate agriculture commit
to) only a few weeks ago approred
the fee provision and the amend
ment adopted by the house com
saittoe regarding use of the loan
provisions Is Identical to a;' provi
sion In the senate bill.
This loan provision is one of a
number of changes that have been
made in the McNary-Haugen farm
relief plan since It was rejected a
year ago by , President Coolidge
attar passing both house and sen
At that time one of the chief I
objections raised by the president
waa against the equalisation fee
proposal and Haugen said that the
loan amendment was designed to
require the : d to first try to
DICED
EQUALIZATION FE
APPROVED IN
stabilize agriculture by the loans,
which have been favored by the
administration la preference to the
fee machinery.
CDOLIDBE REQUESTS
DEBTS BE SET ASIDE
Recommendation. Made To
Congress Monday In
Case of Austria
WASHINGTON, March 20.
(AP). President Coolidge in a
special message to congress today
proposed that the United States
temporarily set aside its mone
tary claims against Austria in or
der to enable that country to bor
row additional capital for econo
mic reconstruction.
Along with the mec-sage the
president submitted a report from
Secretary Mellon explaining the
obligations which the United
States now holds and the policy
toward Austrian finance which i
is willing to assume along with,
other nations who are creditors ol
Austria.
Mr. Mellon explained that in
1920 the United States furnished
Austria with S24.055.708.92 for
the purpose of purchasing food,
while European governments pro
vided $95,000,000 additional. All
of these food loans were subordin
ated as liens in 1923 to enable
Austria to borrow 1125,000,000
for reconstruction and the coun
try now desires to float a new
loan of about $100,000000 to
complete its enterprise. The pro
ceeds would be applied to the re
pair, improvement and re-equipment
of the Austrian railway, tel
egraph and telephone systems,
Secretary Mellon explained.
WALL STREET MART
SEI
Radio Corporation As Wei!
As General Motors Shows
Heavy Gains
By STANLEY W. PREXOSIL
Associated Press Financial Editor
NEW YORK. Mar. 20. (AP)
Cries of a "corner" resounded in
brokerage houses today when com
mon stock of the Radio Corpora
tion scored a spectacular gain of
123 a share on the New York stock
exchange, duplicating the record
high price of $1(0 established last
week and starting a fresh turmoil
of speculation In other Issues.
Sharing market leadership with
Radio, which lost 6 fo its gain on
profit taking, waa General Motors,
which Jumped $6 a share to a new
record price at $174 and closed
1 a share below the top price.
Combined sales of Radio and
General Motors ran close to 500,
300 shares or about one seventh of
the day's entire volume of busi
ness. It was the eighth consecu
tive full session in which stock
sales had crossed the 2,000,000
share mark.
The average of 20 leading In
dustiial shares, compiled by the
Associated 'Press, advanced nearly
1 V points today to a new high
record for all time and were ap
proximately 20 points above the
year's low.
Stock exchange authorities have
been lnvestigtaing reports of an
alleged "corner" In Radio for
about a week, demanding dally re
ports of all transactions from ac
tive members but no announce
ment has yet been made as to the
progress or result of their inquiry.
The stock broke from $110 a
share in the first few days after
the Investigation started, prob
ably inviting a renewal' of "short
selling" on the part of venture
some traders. But when thn atrwk
started up today, it was apparent
that there was still not enough to
go around as It Jumped from $155
to $160 between sales. At the
close of the market the stock was
loaning "flat" to those who bor
rowed It in order to make delivery
against short sales, which means
that borrowers who were forced
to deposit with lenders the current
market price of the stock as secur
ity,- received no Interest on their
money.
SEEKS FLIGHT RECORDS
Lone Aviator Wants to Establish
New Non-Stop Mark
ST. PAUL, Minn.. Mar. 21.
(AP) Gene -Shank, young St.
Paul aviator trying for endurance
flight records, was forced down
early today by a broken gas line
feed after he had been in the air
12 hours and 21 minutes. -
ST. PAUL. March 10. (AP).
a solo filghl In quest of sev
eral records especially that for
sustained flight Gene Shank, IS
year old St Paul aviator, was . In
the air tonight after taking oft at
1:17 p. m. from the ice of White
Bear; lake. . ;'J-' V
, Circling over the St, Paul air
port, he set himself to the task in
the hope" of bettering ': the world
mark of nearly I1H hours Inci
dentally brekalsg Colonel Lind
bergh's solo Clght record of more
I than It hours, made In his At-
Untie hop." I t;
Another mark aimed at by the
young .pilot was ; the endurance
flight for light planes of the type
he is' flying, now set at 11 hours,
and the refueling- record - of ST
ES FRENZIED DAT
THE OREGON
hoars.'. ' 1
He viU attempt refuelling his
plane while flying alone. In the
other instances of refuelling In
the air two men have been aboard
the refuelled plane.
Many Pupils Not In School
At Auburn; Illness Cause
AUBURN, March 20 (Special)
Twenty pupils were absent from
animal last vck ineanaeitated
due to measles, pink eye andJwne8 of Tillamook and Lyons of
colds.
Mr. and Mrs. Roy Hammer
visited at Netarta Sunday.
Miss Nellie Morgan gave a piano
recital Saturday. Pupla taking
part were Kenneth Morgan, Ethel
Johnston, Nadine Earls, Elsie
Graham, and James McKenney. A
number of1 guesta were present.
Refreshments . were served by the
hostess. The decorations were ap
propriated to St. Patrick's day.
Mr. and Mrs. Frank Verblc
were in this vicinity last ' week
calling on old friends. They have
located in North Salem tempor
arily, but will leave for Idaho as
30on as weather and road condi
tions are favorable.
Mr. and Mrs. Moses 'Honaker
were visiting in this vicinity last
reek.
Mrs. E. T. Peltier accompanied
her mother and sister to Portland
.ast week for a short visit.
Hurlie H. Moore Accepts
Position At Stiff Store
Hurlie L. Moore, who for seven
years has owned and operated
"Moore's Music House," has ac
cepted the management of the
piano, radio and phonograph de
partments of the H. L. Stiff Fur
niture company where he will be
glad to meet all old -customers
ind friends.
It Is the purpose of the Stiff
Furniture company to build up
the largest and best musical In
strument business in the Willam
ette valley.
Earl Heider. who has for the
past two years handled the radio
service department at Moore's
Husic house, has been added to
the service force at Stiffe. This
department will be equipped to
handle service on any make set.
SPORTS Continued from P 4
COLEMAN SELECTS
BEST HIP STARS
CORVALLIS, Mar. 20. (AP)
But one player at the state high
school basketball tournament at
Salem stood out enough among
the rest of the prep hoop athletes
to merit an undisputed all-star
place according to Ralph O. Cole
man, who refereed the tourna
ment. Lewis of Washington high
school was given the all-star cen
ter berth by Coleman without any
hesitation.
Picking guards and forwards
was not so easy but Coleman final
ly settled the question by naming
three men for each Job on his all
star first string.
Duffy of Salem, Dolph of Wash
ington and Melvln of Medford
were placed in forward positions.
Coleman gave Duffy the credit
for keeping Salem in the running
up to the last by means of his bril
liant shooting. It was about a
stand off between Dolp and Mel
vln with the Medford youth hav
ing a bit the edge in aggressive
ness. Both were extremely hard to
guard and plenty fast on the
court.
Another Salem youth In the per
son of Kelley rated th mythical
regulars as a guard. He was In on
every plany and ready to come
through with a basket when one
was needed. McDonald of Medford,
although playing forward in the
tournament, feels more at home in
his regular position as guard and
In Coleman's opinion rates an all
star defensive Job.
STATESMAN, SALEM, OREGON. WEDNESDAY MORNING, MARCH 21,
. Knowlton of Tillamook, a good
man under the basket and a clev
er floor worker, rated the other
guard berth.
The second string waa somewhat
easier to name with five schools
each placing a man. Washington,
Salem. Bedford and Tillamook
aaraln took ratings with Astoria
supplying the fifth member.
Guards for the second team are
McCartney of Washington and
Phlpps of Medford; forwards are
Salem; center is Wilson of Astor
ia. Honorable mention were given
Chapman of Marshfield, Page of
Tillamook, Gibson of The Dalles,
Beechler of Salem and Arvola of
Astoria.
O-
-o
I
Bits For Breakfast
Hoover- meeting tonight
S
And nearly every one in Salem
is a Hooven man or woman; al
most irrespective of party affilia
tions. Marion county mapped out her
second market highway improve
ment program in 1925, for five
years beginning in 192 6. It was
110 miles. Finished 25 miles in
1926 and about 4 8 miles last year.
and will complete the program
this year. - And perhaps more.
Quite likely a good deal more.
m S
The Howard Auto company, op
erating in all three Pacific coast
states and said to be the largest
distributor of automobiles in the
world, will spend a thousand dol
lars this spring in filming the Mc
Kenzie river, the McKenzle high
way and the McKenzie pass.
These pictures, with others taken
at various points along the coast,
ill be shown at theaters
throughout the state of California.
They are designed to show to tour
ists and to other prospective
travelers what there is to be seen
in the great outdoors empire
stretching from Canada to Mexico
and reached by the greatest of all
highways the Pacific highway
the highway that has been called
the "longest street in the world."
reaching -from Vancouver, B. C.
to the Mexican line below San
Diego.
Mayor Baker announces that
when the Chicago grand opera
company comes to Portland he
will not greet Mary Garden with a
kiss, and Oregon paragraphers,
putting two and two together, con
elude that the law has been laid
down to the doughty mayor at
home. But how about Mary?
Doesn't It seem that under the
circumstances the public is en
titled to a snappy comeback from
her? Eugene Register.
"Girls were harder to kiss in
your day, weren't they, grandpa?"
"Wall, mebbe; but It wasn't so
blame dangerous. The ol' parlor
sofa ..wasn't apt to smash into a
tree Jest about the time ye got all
puckered up."
GENEVA HEARS BRITISH
SCORE SOVIETS PLAN
(Continued from page 1.)
Soviet proposal, he added, ought
to be carefully considered.
At this the Soviet delegation
became very attentive only to
discover that the consideration
the speaker gave them was more
than they expected. He proceeded
to dissect with merciless precision
the plan paragraph by paragraph.
to show that It was contrary In
every way to the covenant of the
League of Nations.
LOST BANKERS
CAR DISCOVERED
(Conttnaed from psf 1.)
marshals office were here yester
iay and today to question Barker
regarding a Are at Central Point,
Dre., last August.
The fire destroyed the Freeman
ind Wiley warehouse in which
barker had stored furniture and
Lxtures which he had purchased at
ledford. Officials said Barker had
iken but $10,000 insurance on
he property.
Without Extra Cost
The management of property and therttiitable, economical
administrAtion of estates requires the supervision and judg
ment of an executor trained along .that line of endeavor.
WherTypu appoint the Trust Division of this bank as execu
tor under your will you may be sure of that sort of service
without extra costT
. :; ,. ' ' , , ' .. , - 1' ... ? - ';. '
" .V. ',- ' . f - - y
United States NatLial Bank
The Bank That Service Built
NEW MONASTERY TCT BE
DEDICATED, MT. ANGEL
XCentinae
page 1)
the former monastery and college
buildings stood, and Is built in the
shape of a capital "E" with the
church as the middle wing. The
south wing includes the reception
room and the archbishop's room
as well as the space now to be used
for the seminary. The spacious and
beautifully decorated dining room
is in the north wing. The fathers'
and brothers' living quarters are
on the second and third floors.
At the rear -will be planted an
unusually beautiful monastery
garden, overlooking the valley to
the northeast.
Despite the age-old use to which
it Is to be dedicated, the building
Is strictly modern in every respect,
and has been greatly admired by
visitors. i
SMITH REPLIES UPON
SINCLAIR FUND CHARGE
(Cootinaed from page 1)
you have made by your pretense of
disclaiming desire to cast reflec
tion on me or stating' that your
committee has no concern with the
matter."
After the governor had written
the letter, word was brought to
him that Mr. Sinclair had contrib
uted on one occasion to a demo
cratic campaign fund in New York
state. The contribution, made in
1918, to the New York county
democratic committee, amounted
to $1,000, records in the secretary
of state's office disclosed.
G. O. P. Donation Shown
The same records disclosed how
ever, that in 1922 the vear thai
Nathan L. Miller oDDOsed and wa I
defeated by Governor Smith Mr
Sinclair contributed $6,000 to the
republican state committee. The
payment was made, the record
showed, to Anson C. Goodyear,
treasurer of the state committee
Careful examination by Secre
tary of State Robert Moses ol
contributions to the governor's
personal campaign funds failed to
disclose any mention of Mr. Sin
clalr s name. The examination
covered every available by the
data filed in the department oi
state and other state offices.
Walsh Flays Colleagues
WASHINGTON, Mar. 20 (AP)
A rift in the senate Teapot Dome
committee between the " youthful
chairman, Gerald P. Nye, of North
Dakota, and the silver haired pros
ecutor, Thomas J. Walsh, of Mon
tana, appeared on the horizon to
day as the committee prepared to
reopen Its public hearings tomor
row.
For some time there have been
under-surface indications of dis
agreements between the republi
can and th democratic senator and
today the Montanan brought the
matter into the open with a formal
statement generally viewed as crlt
icizing the course of the chairman
in certain matters.
"It is singularly unfortunate,"
Senator Walsh said, "that publicity
should have been given to some of
me pians oi me committee, or
what individual members conceive
to be Its plans, and equally that
there should be, allowed to become
public information affecting price
less reputations until it is con
firmed upon inquiry to such an
extent as to warrant the develop
ment of the facts through wit
nesses."
Demand To Be Ignored
That sentence appeared at the
end of a statement by the Montana
That Baby YouVe
Longed For
airs, nanon vises women on
Motherhood and Companionship
For eTrl years I was denied tht
bleating of Brotherhood," wrttei Mr.
Margaret Burton of Ka&sae City. "I wai
terribly nervosa and subject to period
oi tempi eunennr and melancholia.
Now I am the proud mother of a, beauti
ful Mule daughter and a true com pa a
Ion aad inspiration to my huaband. . )
believe hundreda of other women would
like to know the aocret of mr aaDninesa
and I will gladly reveal it to any married
woman who will writa ." Mr. Bar
ton offer nor ad rice entire! without
i-harge. she na nothing to sell. Latter
thoold bo addreaaed to Mr. Margaret
Barton, $029 Maaeaehasetta, Kansas City
To. Correapondeac will bo strictly evidential.
an in which he stated that the
committee would ignore the de
mand made in the senate yesterday
that Governor Alfred BJ. Smith be
called before the committee "for
the plain and simple reason It has
no ground to bellere that he can
shed any light upon the subject oi
Its inqulry."
The precise reasons for Waisn s
strictures on the chairman were
not specified, but those closely
fiiowfnnr the Investigation acco--
tfc.m n. referring especially to
Nva's announcement yesiero
tt..- th committee would Investi
gate the records of the tiarowa
and the Dermlttlng of re-
Mrtn t leak out at Chicago wnicn
.mr. h. lmoelled both Associate
Justice Frederick L. iSddons of the
metric of Columbia supreme
Chief Justice George E
Martin of the District or coiumDin,
rt nru la to issue state
ments.
Jurisdiction Defined
While Walsh's statement was In
nrenaration. the chairman ampli
fied his previous statement about
the Harding estate inquiry by say
ing that the investigation would
be comprehensive enough to en
compass the questions of whether
the late president became the rclp-
int of "any returns whatever from
any of the interests Involved in
the Continental Trading company
and these other oil deals."
Lu his announcement that Gov
ernor Smith would not be called
In response to the demand of Sen
ator Robinson, republican, Indi
ana, Senator Walsh called atten
tion that the committee was "di
rected to investigate generally the
leasing of the naval oil reserves
and specifically to ascertain what
disposition was made of the bonds
of the Continental Trading com
pany." Ulterior Motives Deplored
"The committee would forfeit
whatever measures of respect it
ASS'S
Here
. .V-h Its labor IX W
has earned thronfh us xaoor
eould bepreralled upon to go-out-.
side of the field prescribed tor
by the resolution nnder which It
acted." he added. rM- 'J f?l
lerre unirersal contempt If it did
mi. r Impair tne pout-
pU of any individual or
,cai prv f difficult to con
ceive 'thai the sugfe-tion that Gov
ernor Smith be caiieu w ----
ta the honest belief
mittee ought to or would do any
. i 9 ik Wind.
Tortunities 1 n n o m erable
have come to me to depart from
the strict line ol
the committee has been limited by
the senate. I have even been sub
kA n rriticlsm and accused -of
a purpose to shield personal or
political friends.
"I am convinced, hwoever, that
the duty of the committee Is plain
to resist all such appeals and that
any departure is more than likely
to result disastrously to the value
of its work."
HINT DYNAMITE CAUSED
BLAST; QUIZ LAUNCHED
(Continued from page 1)
i ... nnolvelo nf the
neers to m " ". -
... . u . aKah tha rm-
cauee whicn Drousui
-si
mm
fnnsBnFSOJiSiiBwnnn
MEN WHO WISH
THEIR CLOTHES
TAILORED IN
OUR OWN SHOP
a i
We have the privilege
of having with us to
day the representa
tive of the world's
largest .woolen house,
showing several thou
sand stylings for
Spring. We cordially
invite every man who
has his clothes tailor
made to see this un-
a
only.
i a i
In our Custom Tailor
ing Department.
0
...... . Ilia 1IK tant klefi .4
w - . o- uaig
release of a roaring
rem w ' ' ui
death-dealing water. 1
" Among the phases to be (4'
up by the federal probers win ta'
the possibility that the collap tf
the 1 0,0 00 cubic yards of ,ntu
erete was caused by eiplot-ut
that land slides brought unat,'ic.
lpated pressure against the stnJC,
ture, and that the failure or 'h
dam may have been due to U:.T
construction or location.
Old Threats Recalled
Sheriffs deputies recalled tu.'sy
that nearly a' year ago wh0
Owena valley residents were p.;r,c
mating with dynamite their wK
upon the city for water rciar.v
tlons. an anonymous warning as
.iAnhond the sheriff lntlmu:
w.ar . . I
. . . v CP rrinni nam r..
ua
Kjt rfvnamlted. As a result j;uar 3
were posted on the dam night h-.i
day for several days.
In Santa rauia, nean oi
flood-devastated area, the s
Paula claima committee Imr;
work today. In a few hour-
150 claims had been ruea
for damages totaling half h
Hon dollars, for the loss oi t
and citrus
Paula.
orchard's In