The Oregon statesman. (Salem, Or.) 1916-1980, February 21, 1929, Image 4

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The Oregon statesman., February 21, 1929, Page 4, Image 4

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Newspaper Page TextC A. Speague . Earl C. Brownlee Oheldon F. Sacxett t publishers Salem Oregon .Thursday February 21, 1920 ,d5ftoirial f&mm v Feaftoires sBasaGsxaraBBBsaeassEssaBBanasaBBaBBa i? ' o 1 . 1 " v,urDing opecuiauye Loans i fflHE present bogeyman of the business world is the era- A ployment of vast sums of money in loans to brokers-on the New York Stock Exchange. The figures of the federal reserve banks showed a total Tof loans on brokers' collatera of $5,669,000,000 on February 6, a gain in one year of SI, 834,000,000. The stock exchange itself which has more com plete figures, showed a total of brokers' loans at the end of January of $6,735,164,242. The tieing up of such a vast amount of liquid capital in Wall Street speculation is looked at askance by conservative bankers and by federal reserve authorities. The latter have tried by warnings and by jumps in the rediscount rate to scare the public out of stock speculation. The pinch for the federal reserve board comes in this: every increase in the rediscount rate affects so-called legitimate business the same as it does stock speculation. The board can't have one set of rates for one group and another for the other. This leaves the board afloat in an oarless boat so far as making for a safe harbor is concerned. We are not among those who foresee disaster because some six or seven billions of our idle wealth is loaned to brokers upon the backing of the stocks and bonds listed on the New York exchange, surely the finest collateral to be found in the world anywhere. The loans are enormous, but so steadily has the business world been warned against their size and their rapid increase, that it is well fortified against reaction ; and those doing the loaning are well secured. We heard the same complaint just a few years, ago about the magnitude of credit tied up in installment credit. Buy ing automobiles and radios and washing machines on the in stallment plan was going to wreck the country without fail. Somehow the country pulled through, the installment loans still bulk large, but the clamor against them has quieted down because the new bogey of brokers' loans has been set to waving its arms. The plain fact, which so" many people fail to recognize, is that we are undergoing a deep revolution in the capitaliz ing and financing of our industrial development. Corpora tions are now less and less one-man or one-family affairs their ownership is widely scattered. Business now instead of confining its borrowings from banks, is now able to floa its loans to the investing public on favorable terms. Brok ers loans represent then, not just wild speculation, but in many, many cases, the sensible investment of individuals in the securities of the nation's leading industries, securities not fully paid for. This is no more reprehensible than buy lng a farm or a house on a contract. As this shift in capital ownership progresses we shall 1.1 li Ml 1 1 A! 4- 4- Lkmn es may bring reactions, but the present situation is not just . an excess of speculation ; it represents a deep under-current of change in our economic life. Some new threat will arise to give our bankers things to worry , about, and this scare about brokers' loans will be forgotten along with installment buying, foreign loans, and other financial scarecrows of for mer days. The Portland-Yakima Railroad ANOTHER of those repertorial air castles which makes papers interesting reading is the guesswork of The Ore- gonian s reporter that the Southern Pacific may be backing the; proposed railroad from Yakima to the Columbia river. We have no inside information but we venture the opinion that the Southern Pacific can find better uses for its money within the vast empire it now serves than to try to get from the Columbia river across the high Klickitat plateau or ever across the lower Horseheaven country to reach Yakima from the lower Columbia. Paper railroads are not nearly so numerous as they usee to be and filing of articles of incorporation for a railroad if now so rare as to attract special attention on that account It is chiefly journalistic buncombe from the Portland press, which tries to penetrate the Yakima valley with a railrpac1 from Portland. The terrific cost of such a venture would doom it from the start. Railway engineers are more practi cal than that, but of course speculative promoters are always looking for gold bricks to peddle to the gullible public. Port- i land papers are strong for the, water grade, but in their zeal for an air line connection with Yakima they do not hesitate to scale the heights about rlount Adams and bore 17,000 foot tunnels. - The Yakima Republic has ' the following comment tc make respecting the schemes of the railway promoters: "The country between here and Portland, direct, would be Im possible for a railroad. To get out of the valley to the top of thr ridge between the Yakima and Klickitat watersheds would cnUll enormous expense, and to cross the Klickitat and Its tributaries south r Mount Adams la a railroad undertaking that under any conditions we know now would be so costly that it is prohibited. Engineer Dwlgbt Redman 'told the Toppenlsh Commercial club all about that . . I. - J FTl 1 It LmmuI 1 .nmhln .Knnl a lT.OOO-foot tunnel over there. . "Talk about a shorter rail connection between Yakima and Port land that will be furnished 'by n syndicate is, under any conditions we know about now, merely blah-blah.' Senator Reed's Valedictory OENATOR JIM REED made his valedictory in the U. S O Senate an invective against prohibition. All his powers of scorn and vituperation were massed in his onslaught on the prohibitory law. Reed chose this as the outstanding is sue upon which to stage his farewell appears in national legislative halls. Yet this burning issue, this "greatest of all crimes" is precisely the same issue which Jim Reed, can didate for the democratic nomination, said was not a cam- taign Issue. Reed who now charges fiercely against the Volstead act is the same Reed who tried to pussyfoot into democratic"" favor by soft-soaping the issue he now rides upon. ' . , !,.;; ' : : But Reed does drive home some shafts which ostrich beaded prohibitionists ought to ponder. It is true that liquor still flows too freely. It is true that genuine attempts at en forcement on a national scale have not been made. It is true that! educational programs for temperance and for self -re- . : 1 a . m m A.1 1 . . & strains nave Deen negieciea in iavor 01 mere prauug auuui the law. Friend and advocates of prohibition have great bWama 4Yw vmbVa 4-Via 1m a nrvAoa mvA f Via trmaf. fcen n an q vaVA w nwv wv mm w wwwp-p s est task Is the education of people in respect for law and in the hazards: of Iiauor indulgence. Reed is "all wet" when he praises the virtues of liquor! dealers in Dre-Volstead days. Booze interests have always fwm lawless. corruDtlnir and criminal ' in their tendencies. That characteristic has not changed since liquor itself be- mme outlaw. . Comnared with the ideals 01 its advocates pro hibition is a failure; compared with the vicious conditions of open saloon days, prohibition even as it is now, is a vast im provement. ' -; 1 i " .. -1 Emerald Drops Editorials mHE Oregon Emerald, student daily at the University of X Oregon, announces that.it will experiment by dropping! its editorial column and substitute letters irom its reaaers. The Emerald is following the example of the Boston Tra veler (not Transcript,' Mr. Emerald writer) which gravely announced the world was tired of editorials so it would print them no more. Just a few days the Traveler tried the plan, then announced that its readers wanted editorials, so their miblieation was resumed. i, vi k We hope; it Is that way with the Enerald. Its editorial comment has been above the average in topics, in treatment and in style. ( Nor does it speak well for the school of jour nalism at the university, under whose auspices the Emerald is produced, that the Emerald should abandon its column of editorial comment." v' ! . The Fortunes of War Editorb Say: Old Oregon's . Yesterdays Town Talks from The States, man Our Fathers Read February 21, 1004 Local politics in Marion county are beginning to be pretty lively, although the republican central ommittee meeting does not meet or another week. The Liberty Good Roads lea- Tue met, with a debate on "Re vived, That the wide wagon tire a a benefit to the roads" being he feature of the program. About $20 was realized as a re mit of the "afternoon" given by the Salem Woman's club. The noney will be used to help furnish Dne or the rooms in tne high chool building. no serious cons ideration w h a t e t er to Quong Hing, Salem Chinaman, the suggestion Who's Who & Timely Views Value of Plane Carriers Outlined By CONGRESSMAN FRED A. BRITTEN take their places. Portland Is making a valiant effort to authorise the construc tion of a shortcut road from that city to the Tillamook beaches. That is the objective of Senator KleDDer's bill before the legisla ture, and he and his cohorts have struck bard to achieve it. In spite of the fact that such a road would offer a shorter route to the beaches from Portland than does the Columbia river highway through Astoria, this community is not disposed to turn thumbs down upon the project. While con eeivablysuch a road would divert some traffic from this community, it would on the other hand be the means of increasing the traffic to the beaehes of this county and would complete a loop road which would bring marfy of the beach travelers through this city one way or the other. . However, this community has a right to object to the diversion of funds from the Roosevelt highway to this new road. The coast high way has a clear claim to priority over any new road, in the dis tribution of state highway funds. The proposed new highway from Tillamook to Portland, desirable as it la, should await its turn as the Roosevelt highway has had to await its turn. Astoria Budget. NONSENSE ON EDUCATION President Hall of the Univer sity of Oregon told the Joint way and means committee of the legis lature at Salem that "if men and women of the state would drop a cigar, a cigarette or a lipstick in to the education, fund occasional ly, there would be no shortage ol funds with which to conduct in stitutions of higher learning." He was appealing for appropriations greater than many members of the legislature think that the tax payers can afford to pay. It is doubted if he made a fa vorable impression with that argu ment, for it is based on futile ex pectations, says the Spokesman Review. Funds to maintain the schools,! colleges and universities will not be had in that way. The are derived from taxes, and taxe come out of industry and business Public revenue can't be raised b. asking men and women to tos the price of a cigar, cigarette o. lipstick into the educationalfund. That wouldn't bring enough rev snue to support a one-room rura. ichool. Walla Walla Union. Chairman, Naval Attain Oommltt (Fred Albert Britten was born at Chi cago, 111., Not. 18, 1871. He wai educat ed in the public schools of that city and business collere. Since 1804 ha has been in the reneral boildinr construction busi ness. He waa alderman of the twenty- third ward in Chicago from 1908 to 1912, ami chairman of the eirit aerriee com- ission in 1909. He ha been a member of con tress from the ninth Illinois dis trict since 1913, his last term expiring next rear, and t a Republican ). VIATION enthusiasts need not fear the scrapping or decommissioning of the Lex ington or the Saratoga. It will not occur. I am quite sure that the house committee on naval af fairs will give Sunday will shoot off 1200 worth it firecrackers at 264 Liberty street in celebration of Chinese Xew Tear. Poeinnis t)hafc Live 1 rO AENONE , i Chicago police needn't worry about the ganffs. ecm pretty able to take care of themselves. .They W is it 'HAT conscience, say. in thee, ; When I a heart had one, To take away that heart from me. And to retain thy own? For shame or pity now incline To play a loving part: Either to send me kindly thine. Or give me back my heart. Covet not both; but if thou dost Resolve to part with neither, Why, yet to show that thou art jutt, - Take me and mine together! .Robert crrJcfc 1S1-1C74 SMJPPMMS GIVE! of scrapping either of these ships or even to their decom missioning in the interests of economy. In all of the maneuvers with the fleet the Lexington and Saratoga have clearly demonstrated their great value, both In offensive and de fensive warfare, while as scouts for locating the enemy it is im possible to calculate how many cruisers would be necessary to 9f3XO A.BA1TTOM With from 80 to 125 planes op erating with each carrier, they immediately assume greater com batant value than any aviatior field in the United States. Fo coast defense they are superior t our most formidable land fortifi cations. If these ships have any value at all, it must be in their constant use. Unless pilots are flying front the decks of the Lexington and Saratoga In war play and maneu vers with bombing planes, combat, pursuit and other types of plane; in constant practice, the ships might just as well be scrapped. To decommission them would be worse than scrapping. I would not trade a plane car rier for our most formidable dreadnaught. Great Britain has six plane car riers of fleet speed totaling 107, 550 tons, nearly twice the ton nage of our Lexington and Sara toga. Japan has 63,000 tons, al most equal to the 66,000 tons of our first-line carriers, and almost up to her tonnage limitation at prescribed by the Wasbingtor treaty. Both Great Britain and Japar have long recognized the snperioi value of plane carriers, not onl: for combat with enemy planes bu as distinctly offensive vessels tc go along with the first-line dread naughts. Kellogg Opposes Change In World Court Protocol Hi The Joint resolution introduced by the special committee on ad ministration providing for a cab inet form of government safely went over the senate hurdles Tues day and will now go to the house. The resolution provides for the reorganization- of the state gov. ernment into nine departments and the governor. ! Senator Joe Bailer said that while, he favored the principle ex pressed' in 1 the resolution, be thought the attorney general should be elected rather than be appointed by the I governor, i -He said thJa ' practice ! had been- fol lowed in other states where ' the cabinet form of government had been adopted. :. i f . . " V- The resolution will be referred to the voters at the next general election. IRISH GENERAL NAMED DUBLIN. Irish Free State. Feb. 20. (AP) M aJor-General Sean MeKeon today was appointed chief if staff of the Soars tat army. ' WASHINGTON, Feb. 19. (AP) Secretary Kellogg in identic notes to the nations composing the world court said today ' that the proposed revision of the tri bunal's protocol in relation to the fifth reservation of the senate for adherence would not furnish ade quate protection for the United States, The secretary of state suggest ed the possibility that the inter est of the United States might be protested in the protocol in some other way or by some otner ior-i mala. The portion of the fifth res ervation declaring for public ses sions on the court's advisory opin ions and the other four senate reservations already have been adopted by 24 of the world court governments in a 1926 confer ence. Part of the fifth reservation, however, which states aay advis ory opinion touching on the Unit ed States should be first consent ed to br this country was not agreed to by the nations. 1 The i communication of the state department head was deliv ered to the Washington diplomat ic representatives of the nations Interested. - 3 ,. t "The government of the United States," said Mr. Kellogg, "feels that such an exchange of informal views as is contemplated by the 24 governments, should, as here in suggested, lead . to agreement upon soma provision which In un objectionable form would protect the rights and interests of the United States as an adherent to the court statute, and this expec tation Is strongly supported by the fact that there seems to be little difference regarding the substance of these tights and Interests Conferences IteraUetl la connection with " Kr. Kel- logg's communication t o t h c world court governments, it is re called that Eaiau Root, who sail ed Saturday for Geneva, to attend a meeting of jurists to consider revision of the court's protocol held a series of conferences here with President Coolidge. Secre tary Kellogg , and various senat ors. Secretary Kellogg in his note reviewed the conclusions and rec ommendations of the 1928 Geneva conference of world court signa tories which accepted the first four senate reservations and also the portion of the fifth reserva tion. - "The government of the United States." said Mr. Kellogg, "de sires to avoid in so far as possi ble any proposal which would in terfere with or embarrass the work of the counsel of the League of Nations, doubtless often perplex ing and difficult, and It would be elad If it could dispose of the sub ject by a simple acceptance of the suggestions embodied in the final act and draft protocol adopted at Geneva .on September 23. 192. r More Discussion Asked "There are. however, some ele ments of uncertainty in the basi of these suggestion which would eem to require further discus sion. The powers of he council and te modes of procedure depend up on the covenant of the Leagueof Yations which may be amended at any time. - The ruling of the iourt In the eastern Carelia case nd the rules of the court are also abject to change at any time. For these reasons, without further fa mily I Into the practicability of the suggestions, it appears that he protocol, submitted br.the 24 Governments lit relation to tbe 5th reservation of tbe United State senate would not furnish adeouate, protection to the United . States. "MOXTASTA FBREZES SHELBY. Mont, Feb.: 20. (A A; TerUabIe blixzard : w Mowing here today from tbe west The temperature was 22 below. Ui PIP HELD AT BROOKS BROOKS, Feb. 20. (Special) Mrs. Charles Coffindaffer en Pertained with an attractive Valen- une pany weanesaay anernoon In her home on the Pacific high way, having as her guests mem bers of the Brooks Camp Fire gifls. The living rooms and din- 'ng room were decorated in keep ing with the valentine motif. lovely bowl of red tulips centered the luncheon table. Attractive heart shape basket? filled with heart shaped candy favors marked covers for Miss Doris Wood, Miss Edna Lesher, Miss Hatel Nys, Miss Ina Lesher, Miss Gladys Otto, Miss Emmaline 3ears, Miss Lena Rlggl, Miss Hat tie Ramp, Miss Irene Sturgis, Miss Bessie Aspinwall, Miss Margaret Wood and the hostess Mrs. Zharles Coffindaffer. A lovely valentine box with val- sntines for each was presented to the guests of Mrs. Coffindaffer. Bits for Breakfast r By R. J. Hendricks To the legislators: Tou will be glad to know that good and economical use will be made of the old reform school land that is now under the charge of the penitentiary management And a lot of work has already been done, in plowing and prepar ing for the crops that will be grown there , And they will be big crops; all the land can be made to produce, under the conditions. And the number of hogs will be increased -to 800: the band of sheep to 100, and the chicken flocks to at least 400; with white Leghorns for layers and Rhode Island Reds and Plymouth Rocks for general purpose fowls. The dairy herd will be Increased to 65 cows; bred up to the high est notch. The program Includes 260 tur keys annually, and it is planned to keep 1000 Belgian hares, to eke out the meat supply. On Monday, there was another record number of inmates at the penitentiary, 726. It was 723 at noon yesterday. But it does not matter so much about these rec ords being broken any more, so far as the taxpayers are con. cerned Because the institution Is on Its way to self support, with every tingle able bodied Inmate at work, and a large proportion of them employed in the Industries that yield a net and mounting profit; chief among them being the state flax Industry. appropriated to the revolving f the program that is now ur' way will bring that industry to point of using the product of r 000 acres of flax, the treatn of which, up to the fiber eta, will render the penitentiary . supporting; absolutely; ami take all the labor that can -spared, even up to a much h . record attendance than the n v. Monday. Some of the farmers of the va ley have lost their late sown f . oats, on account of the re freezing weather. That seenis have been the greatest farm inl from the cold spell. A number of these farmers in several -different sections, have asked for! flax acreage. Rut more canbe contracted for h. cause thefull complement that can be handed for this year la alroadv written up that is. 450$ acres against the 3000 of last year. It Is Just too bad that the sta could not step In at this time an take a larger flax acreage. Hut : could not be handled, with t! present facilities, even If the m ney were in sight to par the fan ers for their flax. But the plans decided upon m , and under way will bring i: available supply up to the prod., of 10,000 acres In a few yea: Perhaps it may be 6000 acres n. year, 7500 in 1931. and up t - 10,000 acre point by 1933. In the mean time, there wiif private threshing, retting ;u ! scutching plants, if the ways ur: ; means committee of c o n g r t -grants the request for higher pr . itective duties on fiber, which Without a cent ever again to be pretty clear certain to happen Big Oil Firms to Participate With Price Reductions Dinner guests of Mr. and Mrs. A. E. Harris on Sunday, were the Rev. D. George Cole, pastor of tne Brooks community Methodist church, O. E. Epley, and hit daughter Gladys Epley. bouthern Pacific extra gang No. 16, which is under the suDervis. ion of R. W. Perry, has returned to Brooks after spending about ten days shoveling snow at Fields which is located on the Cascade line about six miles from Eugene. Dinner guests of Mr. Molsan's mother, Mrs. Mary Moisan on Wednesday evening were Mr. and Mrs. G. J. Moisan of Oervain Robert Nusom of Woodburn was calling in Brooks recently and looking after his place here. Jesse James Jr. Is Plaintiff in Court Litigation LOS ANGELES. Feb. 20 I Am Jesse James. 56. son nt k. famed outlaw, was a nlainttff in court here today, seeking redress for claimed financial wrongs. Junes brought suit against the Famous Players-Laskv mtt.Atnm charging that they bad agreed to pay mm sio.ooo for his aid In filming the story of his father'a life, but that be has received only 1600. He said be lent costumes and acted as technician, consult ant and writer. Government Sees Defeat in Of fing LONDON, Feb. 20 (AP) The government was near defeat in the house of commons last night through dissatisfaction of Its own supporters over the anestlon of compensation to. loyalist sunnert. ers In the Irish free state whose properties had been destroyed or taken over. Prime Minister Stan. ley Baldwin was hurriedly sum moned and saved the situation bv Tirtually throwing over . Winston nurchllu chancellor ; of the ex. Ttquer. and L. C S. Amery, sec- nary oi siaie ipr tne colonies. , SAN FRANCISCO, Feb. 20. (AP) Major oil companies en tered Into the gasoline price war here today and the wholesale price reduction found retail quo tations fluctuating from 13 to 19 cents a gallon on a demoralized market with members of the re tail service station dealers asso ciation working' the war. They have called a meeting for Thurs day at which they hope a stabil ized price can be established. While most of the garage and property owner's association mem bers quoted a retail price of 1 4 cents, all members were furnish ed with 13 cent signs and author ized to retail at that price If they "considered competitive condi tions warranted." The price, offi cials of the association declared, was entirely optional. MPPflOV ES T New Cold Wave Hits Mid-West; Mercury Down CHICAGO. Feb. 20. AP) Another col dwave rode through the middle west today on the -rest of a heavy snow storm that hampered traffic and added to the iiscomforts caused by a dozen tther zero snaps that have pre eded It. The snow was expected to be followed tonight by a tumbling mercury with sub-zero readings general tomorrow from the Rocky mountains to the Ohio river val ley. A little moderation is ex pected by tomorrow night with higher temperatures by Thursday. Temperatures in the Dakotas within the past 24 hours were from 30 to 42 degrees below zero and sub-zero readings were re ported from many parts of the lorthwest. Former Action Placing Club on Blacklist Will be Re scinded, Word Mexican Revolt Put Down With Little Trouble MEXICO CITY. Feb. 20 (API The war department this eve ning announced that the situation in the state of Sonora was normal and that there had been no troop- movement or. any kind there or W the vicinity. The military com mander of the state made the of ficial report to the department to day that everything was quiet. Rumors had been current In Mexico City for several days that a subversive movement bad ap peared or was about to appear in ma ooraer state. VATICAN CITY. Feb. 20. -(AP) International Itotary i about to be Riven a clean bill of health by the authorities of the rmiy rcc. fifiiauiy informed cir Mes of the Vatican tonight saM 'his reversal of a former ruling -aa duo largely to the favoraM' !mpression created by I. I). Sut ton "of Tampico, Mexico, who i president of the International organization. Mr.l Sutton came here in tlx face of a ruling against Rotary by the consistorial congregation that members of the priesthood would not be allowed to Join Ito tary clubs. This ruling came shortly after Osservatore Romano, the newspaper used by the Vati can for its public announcements, had condemned the organization tor its alleged practice of inculca ting a religion "without God." Mr. Sutton, himself a Roman Catholic, Interviewed a number of the princes of the church and con vinced them that his organization respected all creeds. He also told them at least 350 prominent lay men and clergymen of the church were active Rotarlans In the Unit id States and the fact that one particularly prominent layman had been a member of a certain Rotary club in Indiana I faF- 1 - years was emphasized. 1 Tbe task of the international president was lightened by th- fact that he understands Italian and, after. a 25 years residence in Mexico, sjieaks excellent, Spanish OREGON VOTER MAY DE IIWESneiTEO Legislative investigation of !he Oregon - Voter, of which C. C. Chapman is publisher, was de manded in 1 a communication re. ceived by President Norblad today. The letter was etgned by Senators Joe Dunne and Hall, and was read by the clerk. The letter requested that the committee appointed to conduct the investigation be given author ity to subpoena witnesses admin. later oaths and employ such cler ical assistance as is neceasary.lt was requested that Mr. Chapman be compelled to furnish the Com mittee a complete list of persons and corporations subscribing to his legislative service and the amounts to be paid by each. A LIVING trust will place the work and responsibil ity upon us for making all or part of your investments. A thousand dollars or more is sufficient to 'rtarttk.;More may be added at any time. . j ;o.