The Oregon statesman., April 30, 1929, Page 4, Image 4

PAGE FOUR
The New O2SG0N STATESMAN. gatoa. Oregon, Tuesday Ustsh, ArrQ S3, 12
12e Oregon Statesman
"2V Favor Sways Us; No Fear SkdU Awe.
From First Statesman, March 28, 1851
THE STATESMAN PUBLISHING CO.
Chabxes A. Spraoce, Sheldon F. Sackett, Publisher
Charles A. Sprague - - . Editor-Manager
Sheldon F. Sackett - - Managing Editor
Member of the Associated Press
The Associated Press is exclusively entitled to the use for
publication of all new dispatches credited to it or not otherwise
credited in this paper.
' Entered at the Postoffiee at Salem, Oregon, a Second-Close
Matter. Published every morning except Monday. Business
of fie 215 S. Commercial Strest. - I
Pacific Coast Advertising Representatives :
. Arthur W, Stypes, Inc, Portland, Security BIdg.
Ban Francisco, Shtfron BIdg.; Los Angeles, W. Pac BIdg. .
Eastern Advertising Representatives:
Ford-Parsons-Stecher, Inc., New York, 2il Madison Ave.; ,
" '' Chicago, 360 N. Michigan Ave. .
Checking Credit Expansion
MR. (and Mrs.) AMERICAN PUBLIC have been indulg
ing in so much speculating on the stock market by .the
use- of borrowed money that undue credit expansion has re-
, suited which has been givme
end Reserve authorities. The National City bank, whose
monthly letters are a treatise in current applied economics,
has issued a special letter on
cusses the credit inflation and recommends a new remedy.
The condition, according to the opinion of Mr. 'Mitchell, the
head of the bank, causes apprehension.'. It has caused the
destruction of the bond market and consequently retarded
"the investment of new capital
except where sueh development was possible through stock
Issues. It has checked the sale of foreign securities m this
market." And quoting again from the letter: "Unless this
situation is corrected .without delay and a means found
whereby . the purchasing power of foreign markets is re
stored, it will be impossible to
agricultural products, y;
Too much money is being
get these loans liquidated or
count "rates by the reserve bank and tightening up credit
sharply1 is a drastic remedy which would cause precipitate
declines in prices of securities if not in commodities. So
- the National -City bank-urges a new proposal: to have con
gress abolish the income tax
same time grant no deductions
ory is of course that many are' now holding securities on
which they have large profits, but they will not sell and
"take their profits" because they would have to pay too big
a tax to the government.
Somehow we are not convinced that the remedy of the
National City bank is correct.
expedient to cure an immediate
laws ought to be determined not by day-to-day conditions,
bat on the basis of long-settled policy. Second we are not
satisfied that the proposed remedy would effect the cure.
There are doubtless a good many people who do not
want to sell because they would have a tax to pay on their
profits. If they are wise, they will sell or they may lose all
their profits. But the vast majority of people wio are hold
ing the speculative securities are doing so in the bland hope
of making more profits. In the present market, they are
either unwilling to accept losses or they hope the flurry will
blow over and the price advance resumed when they can
then unload. They will hold on till practically forced to sell,
then they will unload and pay of f their loans, pocket their
losses and come back again for more punishment later on.
lline situation is as the bank letter describes, the doing
away with the capital gains tax would simply provoke a gen
eral selling. The dumping of securities in the haste to take
profits might bring just the break which business leaders
fear. -
There isa third reason why we see no hope from the
bank's proposal; that is that no such measure to abolish the
capital gans tax would have a chinaman's chance in con
gsess. So "why bring that up." Some years hence, if the
capital gains tax is proven to be unsound, there might be a
. chance to have congress abolish it; but not at this session
with its complications of farm relief and tariff bills. Wall
Street may take a lesson from the farmers: by the time con
gress gets around to act, the need for "relief" will have
passed. C -
No, the way out of inflation is deflation .whether it is
expansion of credit or of commodity prices or of real estate
prices. Deflation may be abrupt or it may be slow. We
i venture the opinion that the
- trolled so that the liquidation
ized bear raids, however, might upset the apple cart. A
combination of many factors
out great disaster: the importation of gold; slowing up of
business slightly releasing credit; a decline in commodity
prices; selling ox securities to
It looks like some anxious days ahead for holders of
Rubber Keyhole preferred as
Materials
T7E have read something
f T "non-skid" asphalt paving. Well, if there is such an
' animal we would be pleased to see is. For concrete isn't prov
ing the perfect material which the world has been looking
for. The disadvantages of the
that it permitted skidding too
come corrugated, and its black
night driving."
But - concrete has its disadvantages too. Its regular
seams give rythmic jars in. riding. Then the slabs are sub
ject to fracture so that it is not uncommon to drive along and
,.. see blocks of concrete with "many tarred seams. - Concrete
. is -difficult to repair and of course not so easy to cut through
as asphalt.-, - ,:-v:-; ---.v.'; - ; '
- ; The state highway department has been doing some ex
perimenting with non-skid paving using tar by-product from
the gas plant at Portland, spreading it as thin as possible and
then covering with fine crushed rock, and following with a
heavy roller. Only enough to give firmer traction in wet
. weather. The experiments have proven rather good and
more work of the same type is planned for this season. v
The research of - engineers
and error will yet solve the problem of road material. At
. present concrete is the vogue; but any development of a
non-skid asphalt might change the balance, especially if the
price factor continued more favorable to the latter.
Where Arbitration is Appropriate. "
rpHE decision to arbitrate the "I'm Alone" sinking by the
X coast guard is a wise one! The affair was not of- large
importance, certainly nothing for the United States and
Canada td get agitated about.-It might have been the sub
ject of long-drawn out negotiations with all parties, con
cerned dead and buried before the final settlement. " As it
is, the question can be referred to an arbitral court and be
; decided oil its merits after a hearing on the facts and a
1 study of the international law involved in the case. The
findings' of the arbitral court will in large degree fix future
American policy or lead to clarification of the points in dis
pute through ' treaty4 agreement. ; . '. '
Senator Johnson . arose in solemn protest against sub
mitting the "I'm Alone" case to a world court as a danger-
. ous invasion of our sovereign rights. The contrary is true.
It is precisely the case which is best left to courts for de-
. cision- As we get the practice of assigning debated interna
tional questions to competent tribunals we will build up the
structure of goodwill which will make international peace
alarm to bankers and the red
the subject in which it dis
into industrial development,
export the surplus of our great
borrowed; the problem is to
paid off. Hoisting the redis-
on capital gams and at the
for capital losses. The the
First it is advanced as an
situation. Our national tax
situation will probably be con
of loans is gradual. Organ
might relieve the strain with
retire loans. -
well as Radio common.
For Paving
about the introduction of a
old "black-top" paving were
easily, it had a tendency to be
color hindered visibility in
and the testimony of trial
Will
They Say...
Expressions of Opinio from
Statesman Readers are
Welcomed for Use tm this
comma. AH Letters Most
Bear Writer's Rise,
Though Thld Heed Kit be
. Printed.
To the Editor:
Once upon a time in the not far
distant past, notice appeared In
the Statesman of a great meeting
of the federation of community
clubs of Marion county to he held
at Silverton. Thinking that rural
community clubs were Included; a
delegation planned-Jo go from tho
Kelzer community club, one of the
largest in the county: We took
our teats in a body as all food del
egations do and waited.
.The first thing we heard was a
great boost for Hubbard. They
told us that Hubbard was the Hub
of Marion county. Now we ean-
not see the use of a hub without
spokes and rim and tire, etcetera
and they were not mentioned.
The mala speakers-were from
Multnomah county, and their
principal subject was the Cascade
highway. Of course we believe
in highways and road improve
ment In Oregon even In Kelzer
but there were other things we
were, expecting to hear some
thing- we could carry home to our
club some methods for advanc
ing the work of the club and sug
gestions as to how we might im
prove conditions in our several
communities.
. The main spokes In the wheel of
which- Hubbard is the hub were
the Rotary, Klwanis, chamber of
commerce Tell me, how these
would succeed without the rims-
the rural communities to bind
them all together, But the rims
were not mentioned.
The only newspaper boosted
was the Hubbard Enterprise,
while we have lust as enternrlsfnr
a paper In the New Salem States
man, xne statesman Is a booster
for the rural communities. Kelzer
to going to atay on the map. In
the past ten years no less than 16
new homes have been built la the
community. Our school numbers
1SS.
We have one of the finest
school buildings In the county,
with four teachers employed. Our
community club meetings- are
often attended by over 00 people.
Good program -are rendered.
Our young people have majored
in music Lucille Cummings won
first place in the state musical
tournament last year at Forest
Grove, and this year Mildred
Gardner won first place. Last
year Glenn savage won third in
baritone. Jewell Gardner Is one
of our talented musicians and Is
planning for an operetta In the
near future.
The next time we go to a Fed
eration of Community clubs we
will expect to hear of the success
of rural community club work all
over the county.
DISSATISFIED DELEGATION.
Bandits Murder
Three American
Workers, China
NANKOW,' China, .April St, -i
( API The murder hr bndita nf
three American CaMiaII mftninn
aries last Wednesday at Chenkl.
Hunan province, was ' announced
today by the local headquarters
ot the passlonlsf order.
The fathers were the Rir.
ter Covelrou. of Petosker. Iffch..
the Rev. Clement Seybold ot Dun
kirk, N.tY., and the Rev. Godfrey
Holbein of Baltimore. Md.
: No details were given In, the re
port to headquarters but the news
was considered authentic.
Read Dr. Copeland's Health
Articles appearing on the States
That Blotter Do The
Bits ffoir Breakfast
By B. J.
Of course, of course
Salem ought to own her water
system. Should have done It from
the first high wooden tank down
where one of the paper mill build
lngs now stands
u it
Should have bought the system
In the 1910-12 campaign, when
everything was set for it, at a
valuation of about $400,000; and
the people voted it and the coun
cil passed the ordinance for the
bonds, and the mayor Interposed
his veto.
Fourteen years later, in 1926-
27. when the price 'was around
1600.000, and the obUgatlons to
do assumed about szoe.OQO, or
about double what the cost would
have been at the time of the
former effort, the city should
have acted, for it was shown then
that the operating revenues were
sufficient to justify a total cost of
$1,130,812. allowing for the then
ruling rate of Interest on such
bonds, and the saving to the city
of the taxes paid by the company.
V w
And It was shown then that the
growth In gross revenues had for
several years been' 9 per cent a
year.
S S
Aside from the question of
source' of supply, Salem should
own her water system. The price
gets Higher every day. the fran
chise or going business price, for
that depends on the else of the
city, and there is an Increase with
every baby born and every new
resident here. Every considera
tion of common' sense dictates city
ownership. There are good arm
ment in favor of this that would
fill a dozen newspapers,
b V
Mrs. E. E. Richardson writes to
the Salem chamber ot commerce
from San Diego. CaL, that she Is
an old (is3) pioneer of Oregon;
that she deserted Oregon for sun-
ay California In 1887; that she
came "the plains acress" behind
an ox team, which were left to die
on the now famous Oregon trail;
tnat she lived within a stone's
throw fatter a long throw) of
the state fair grounds gate when
that Institution was first estab
lishes. Presuming the date for
the 1929 fair has been designated,
this long . ego . Oregon ' .woman
wants to ' once more - visit the
scenes of her childhood! and note
the changes time, has , 'wrought.
She says she does not expect to
find the "the orchard, the mea
dow, the deep tangled wlldwood.
etc., she used td love so well. "Of
course. she says, th old oaken
Old Oregon's,
Talks from The States
man Oar Fathers Read
April SO, 1004
The will of A. R. Burbank of
Yamhill county leaves I10.000 to
the state of Oregon for the or
phans' homes at Salem and Port
land. Inasmuch as these iastlta
liont are long sines things of the
past, the . fund wU do the state
no good until It has an orphans
heme again.. ;
F. W. Rutherford, road super
visor of the Fruitland district, has
engaged Borate Smith's traction
engina to use la pulling tho grad
er, -and with plenty of power Is
having not trouble In pillar the
roads high and dry In the center.
Attorney L. H. McMahan Is la
Corvanls oa business.
Tho Endeavors rs of tho First
Congregational church will t hold
an Old Maids convention at the
chnrch Friday, May C. .The whole f
city Is invited to see the old
maids, proceeds to go to help pay
Work?,
71
tL:- CJ w
HENDRICKS
bucket has been used for fire
wood, and Its Iron bound hoops
have gone to the junk pile long
ago.
W m
They have, and tho junk pile
that became the city dump has be
come the Incinerator. Wonder If
Mrs. Richardson, or the reader,
knows that the son of the author
of "The Old Oaken Bucket
brought to the Oregon Country
tho first news that the year's no
tice had been given to England by
the passage of tho bill by the
United States congress, on the re
commendation of President Polk
the notice of the termination of
tho joint occupation, agreement
within 12 months? That was glad
news to the early Oregon pioneers.
and they made great demonstra
tions ot rejoicing over It. That
was early m 1840, the news be
ing brought by Sellm E. Wood
worth, official bearer of dis
patches to the United States squa
dron in tho Pacific Including the
commander of the Shark, In Ore
gon-waters. Samuel Woodworth.
author, was the father of Sellm E
Woodworth. The latter, while In
California, was one of the leaders
ot the men who went to the relief
of tho famous Donner party,
starving- In the Sierras In the
deep snows ot February, 18 4T.
W W
On Sunday this column had
something about tho celebration
of the Fourth of July at Salem
and Oregon City In 184S. There
was also a celebration la 1348 that
waa notable. It was at Fort Lee
(The Dalles), by the members ot
W. J. Martin's company, fighters
in the Cayuse war, following the
Whitman massacre. Martin led
the 1843 emigration part of the
way. He was several times
member of early Oregon legis
latures. The company at Fort Lee
was made up largely of Marion
county volunteers. One ot the
toasts at tho celebration was, "Tho
American flag, the only thing
American that will bear stripes."
V
Willamette student with a
Scotch accent gave his sorority
sweetheart a lipstick. He knew he
would get it all back. !
A GREAT NEW GASOLINE
plus
STANDARD
ETHYL
GaSOUNK
Tbt finest gasoline
, wi have ever offered
to Pacific Coast cfrlotorists
STANDARD OIL COMPANY OP CALIFORNIA
OH; FHXB1FIDES!
Some few centuries back there
was a young Greek ehap named
Phldlpldes who goj to enthttsiaa
tTe when the horn boys won a
battle from tho visiting Persians
out from Athens twenty-five miles
or so up Marathon way that he
galloped all the way back to town
with the , news. History records
that he died gloriously from utter
exhaustion just as he tottered into
the public square or market place,
and that made a bully pagw one
box sidelight feature for the extra
the home paper got out that day.
In fact that stunt was played up
so hard that in a few years no
body la all Greece could remem
ber the name ot tho general who
won the victory, but everybody
remembered Phldlpldes. They
built monuments to him. They
conducted great athletic games in
his honor. , Young men from all
parts ot Greece tested their prow
ess over the same course. Grouchy
editors, grown weary of the story,
are said to have raised sotto voce
queries from time to time as why
In time that fellow didn't grab a
horse, but there was no downing
such a good story, and the legend
grew and grew, so that though the
glory that was Greece is gone long
ago, people are still trying to run
themselves to death down to this
very day.
At this moment Mr. "Cash-and-
Carry" Pyle's so-called bunioneers
are trying to set a new trotting
record between New York and Los
Angeles. No holiday in any large
American city is really complete
until there Is a test of how many
fellows can be found who wul try
to out-phidip Phldlpldes .for any
old prise from a plated loving cup
to five dollars.' Motor races, air
plane exhibitions, beauty contests
and all the modern innovations
come and go but the Marathons
go on forever. The Marathon flag
pole sitters had their brief day of
glory, but there are Marathon
dancers, roller skaters, tight rope
walkers, anglers, coffee drinkers.
chess players, bridge players,
golfers (though we have never
heard of any Marathon bricklay
ers or of Marathons In any useful
occupation). In Frisco, a group
of young scientists has discovered
that you can dance for a month or
so on end, night Jind day, with
only occasional rest periods. Port
land Is all steamed up over a
group of perpetual roller skaters.
There's not to reason why, but
a few established tacts about this
Marathon business may be inter
esting. Dr. George W. Crlle.
great surgeon, nas made some
very accurate studies on the ef
fecta ot exhaustion.. The human
organism can stand an unbeliev
able amount of strain. Ud to
certain point Its recuperative pow
era are amazing. Beyond that
point, loss ot sleep and physical
nun start a tearing down pro
cess in tne Drain, and these tears
are never mended. Never! Oh,
well, yon may say. If there was no
Dram to atart wltli That Isn'
in pome xuaratnon stunts are
Imposed upon silly young people
by unscrupulous promoters who
hope to gain a few dollars, grains
or no brains, tBey are entitled to
a warning about the hazards.
Eugene Guard..
An apparent desire on the part
or some to continue the old fron
tier days, accompanied by wide
open gambling, open bars and
free and easy sale of liquor along
with other associate pastimes. Is
reported from some parts ot the
country. ,
The day has gone forever, and
all should understand It There
Is a new Klamath Basin, with
transportation, with Industry,
with a demand for law enforce
ment that Is paramount and ex
acting.
It Is stated that Chiloquin's
right-about-face movement when
the officials there shut up the
gaming tables, ousted the booze
peddlers and told the painted la
dies to go and sin no more, has
not met with favor in some quar
ters; that some elements in the
town are being destroyed, and
therefore some of the citizens
want the city administration to
recant and lift the lid.
Of course this cannot be done
Of course the mayor and other of
ficials of Chttoquln will not listen
to such demands. Chlloquin is
situated on the Indian reserva
tion. It has a double duty to per
form because it Influences the
lives ot the wards of the govern
ment. And be It known in pos
itive language that Uncle Sam
does not sanction Uquor being die-
ETHYL
Aids Hoover
- " , V
... , .
v . i ! '-
- V 1
French Strother, California writ,
ter, has beea appointed "literary
secretryw to Presideiit HooTer,
his dntlee being to delve Into his
torical background pf any occa
sion Hoover chooses for a speech,
the background to be worked into
the address.
pensed In or near an Indian res
ervation. The best thing for Chlloquin,
Klamath. F&U and other com
munities In the Klamath Basin is
to cease the love and admiration
for the old days, and turn to face
the new situation, which demands
that liquor be banned, that gam
bling tables be junked, and that
lives be lived here much the same
as they are lived in other com
munities of the Pacific Coast.
Klamath Falls Herald.
A STIFF-NECKED COMMITTEE
The senate agricultural com
mittee, by a narrow majority
vote, spurns the counsel of Pres
ident Hoover and will report out
a farm relief bill Including the ex
port debenture feature. That pres
ages long flights of senate ora
tory, obstruction and the delay of
real farm relief on sane and prac
tical lines. It Is a pity.
The president In his week-end
letter to Chairman McNary of that
committee showed that the deben
ture plan, if generally applied to
the leading - branches of agricul
ture, would cost 2200,000,000 a
year, which the general taxpay
er would have to pay. He showed
that not the farmer but the dealer
and speculator would reap the
vast benefits of this bonus. He
showed that if any Increased price
did penetrate to the farmer, over
production would be stimulated
with consequent depreciation of
world prices. He showed that the
artificial stimulation of produc
tion in certain commodities would
disturb the basis of diversifica
tion In agriculture. He showed
that the debenture plan would of
fer an opportunity for manipula
tion In tho export market at no
advantage to the American farm
er. To summarize, the debenture
plan would cost 1290,000.000 a
year, result In Increased taxation,
lead to over-production, fatten
the profiteers and bring no relief
to the farmer. It is a plan more
mischievous and unsound than
the equalization fee feature of for
3
mi
13
150 Years Ago Today
George Washington Was In
augurated First President
of the United States
APRIL 30, 1779, saw the birth of a new
system of government a system
whereby the people were not subjects, but
equals I Even in this early day of monar
chies and royalty when the United States
was populated with less than three million
people, America wanted progress and oppor
tunity. This bank has endeavored to keep pact
with the stady growth of this great country.
It has been our constant desire to continual
ly add to the services which we render pa
trons. By so enlarging the scope of our use
fulness, we not only encourage growth for
ourselves, but also for the innumerable busi
nesses that we serve. We are helping busi
ness men daily to grow, to expand prof it-
abl3r - -
Should you, Mr. or Miss Reader, have fi
nancial problems within our scope, which you
think might be assisted with the aid of the
proper kind of advice and co-operation, you
are cordially mvited to come to this bank
and taDe with one ef our officers. -
United States . Rational Bank .
mer farm relief bills which were
vetoed. It is a matter of no credit
to the aenata commit too
that ft favorable report on such a
plan is to be made.
Senator McNary. chairman of
the committee on agriculture, up
held the view of the President in
the committee and may be expect
ed to do so in the sepate. But the
committee majority are a stiff
necked lot. It is to the house that
the country and the farmer must
look tor a practical program of
relief. Eugene Register.
EXPOSING THE GHOST
Literary heroism has been strip
ped from Colonel Charles A. Lind
bergh, leaving exposed the ghost
which has actually written the ar
ticles in newspapers under the
name of America's premier aee.
The, disclosures of J. H. Shuman.
executive editor of the Brooklyn
Standard Union, will be a shock
to thousands of Lindbergh admir
ers who would hare preferred to
believe that the colonel had writ
ten every word of the Interesting
accounts of his flights.
Newspaper writing takes time,
thought, preparation and capacity.'
Lindbergh, as everybody should
know, is a busy man. His ghost
accompanied him for the purpose
of obtaining first-hand Informa
tion, and the colonel read the art
icles before they were submitted
to the publishers. He made occa
sional changes in the text but the
public would never have had the
stories of his thrilling air jour
neys If he had tried to do the Job
single-handed.
Walter -M. Harrison, president
of the American Society of News
paper Editors, shed some light on
the creative effort, when he said:
"I would be ready to believe that
former president Coolidge isn't
writing his oh magazine articles
except that I know so capable an
editor as Ray Long wouldn't hire
a ghost who writes so badly."
All of which proves that Mr.
Coolldge's printed utterances are
of value because of the position
he has occupied. He is terse, but
lacks literary style. There Is noth
ing remarkable about that, and
the people who follow the ex
president do not expect flowery
effects. Exposure of the ghost will
not impair public appreciation of
the Lindbergh articles, which will
not be divorced from the man who
is really responsible for their ap
pearance. Oregon City Enter
prise. BEES
Instinctively we sympathize
with the 90-year-old apiarian who
has written Senator Phil Don
nelly urging repeal of the bee in
spection laws, passed two years
ago. Inspection Is supposed to
curb bee disease, but this patri
arch has handled the insects all
his life and never heard of bees
being diseased. Apart from that,
we are against prying into the
private life of bees. Practicing
polyandry as they do, it is true
bees have practically no morals
and care nothing about benefit ot
clergy. But let us look as it prag
matically. As long as their shame
less code does not Interfere with
honey production, what Savonar
ola among us would lead a cru
sade against. bee morals?
Wo have never received a re
port from Missouri's bee depart
ment and are a little curious
about it. Have they really been
inspecting bees the last two years?
And how in the world does one In
spect a bee? Which end ot the
bee Is held while it is being in
spected? To catch them for inspec
tion, do the Inspectors chsae them
with nets as they flit in the clov
er? Perhaps it is a game in which
the inspector Is "It. If be Is
able to catch the bee and get a
half-Nelson on her, then she must
permit herself to be Inspected,
provided, however, that it she
can sting the Inspector before he
has pinioned her, she wins the
game. St. Louis Post-Dispatch..
; possioie. - - - - -; t - 1 : - - ; . - -
man feature page daily.
for new church.-'