CIRCULATION WEATHER Unsettled todar b4 tfiarsday; Lower tempera ture Tnnraday. Max. tem perature - Tuesday 4S; Min. S; Wind sonth. 10 miles; Rata .17. atty itrnp 4tciriktia far tkm 'Math air Jkaaaiy SI, lit : 6,793 Ivans sVily t 6,zz - Member Audit Bureau eX Grcalatlana., SEVENTY-NINTH YEAK Salem, Oregon, , Wednesday Morning February 12, 1930 No. 277 BIT IS flEIEDSOUi Financial Aspects of Munic ipal Ownership Proposal Are Analyzed .System Should Pay for Itself In 20 Years at Present Rate of Income . If the city of Salem - should lake over the water utility and 'operate it as economically as the Oregon-Washington Water Serv ice company has done In the last year and one-half, it would be possible for the city to pay for th system out of the earnings in 20 years provided also that the present rates were maintained and that the taxation laws were sot changed so that ..municipally owned utilities became taxable. This Is the conclusion reached fn an analysis of financial as pects of the proposed purchase or condemnation of the system, pre pared at The Statesman,' re quest' by Fred H. Paulua, deputy state treasurer. Ownerships Favored Vlth Reservations The analysis Is based solely on figures available in various de partments at the statehouse, and Mr. Paulus did not include there in his personal views, but stated after completing -it that he fav ored municipal ownership with the qualification that the city council should make a thorough V ivestlgation into the condition tf the water system and find that ile need for replacements is not too extensive. He also took occa sion to correct an unintentional misquotation of his previous re marks on the subject... His analy sis follows: "In case the city should even tually take over the plant of the Oregon-Washington Water Serv ice, company, it should not, in my Antnfftn itlnflnvvlA a 4tatt a Ha ft at Chat are not general obligations of the city. Examination of the water bonds of cities in Oregon of the same class as that of Salem, discloses that all such bonds were Issued as general obligations of therdUes, nd that the fall faith and credit of the cities "were pledged toward payment of 'the principal and interest. City cf Portland water bonds also are is sued toward as general obliga ' tions'of the city. 4 "Another reason why the bonds could not be issued merely as liens upon water revenues is the fact that they would not com mand as favorable a sale price as would be the case if they were is (Turn to page 2, col 1.) If 61 PIS 1 BIG CELEBRATION There's going to be a big Fourth of -July celebration in Sa lem -that much was rather def initely agreed at Tuesday night's meeting of Capital Post No. 9, American Legion. But as to Just what sort of celebration it will be, was a ques tion which provoked 'long and loud argument, and at an early liour this morning ' legionnaires were still arguing in groups on street corners and in restaurants. while faithful wives waited at home-and wondered if the ; war had broken out again. . contiderable support tor the proposal to sign up the big Indian congress which has been offered for three days around Indepen denes day. was expressed, and there was another group-which favored a less extensile and more typical Ksurth of July program. A decision win probably be reach ed at the meeting two weeks hence. A Lincoln address, by James Mott. entertainment arranged by Bill Brazeau and a feed topped oft an unusually lively meeting, Plans for a large delegation from Salem to attend the Forest (Prove post's building dedication Febru adv 22 were discussed. ? Annan" -tment was made that the mia k "ffehlp ' campaign was m i -1 W . - 1 1 111. a at A proceeding aiuwiy, aunougu szu members are now signed up. 1200 Unemployed Storm CitjpHoll CLEVELAND. Feb. 11. tAP A mob-of 1,200 unemployed men and women, gathered togeth er by communistic agitators and Incited by alarmists, stormed the city hall today and were beaten back by police after Injury to 20 Of their number and to two police officers. "- s. v- Two men were treated for ser ious Injuries at Lakeside hospital and two other men were held by police. - The riot started about 1 o'clock and - lasted" -about-; 20 minutes. Most of the fighting occurred In little Nuelie, around each of the 200 policemen on the steps. of the hall and; In' Lakeside avenue fn front. - - -' "' Trouble started after all but 100 of the mob had been held out side tho chamber of the city coun cil, whero tho council welfare committee had under considera tion ft petition lot lob which was 2 Men Enter JaU And Then Proceed - To Become Dnaik Scandal in tbe city haU! Things looked very much like it when two of the In mates of the basement space .which Is officially a part of the city Jail and under con trol of the police were found to be thoroughly intoxicated. Furthermore, there was evi dence that they had done their drinking right there In the Jail. However, there are exten uating circumstances which clear teh police of any com plicity in the alleged dnnken orgy. This room is used, ex cept in emergencies, exclus ively for housing transients, and-the door Is not usually locked. These men didn't make the customary call In the police station to ask the priv ilege of a bed; they Just walked in at the Chemeketa street entrance, taking their canned heat with them. They gave the name of LoaJs Lang, Detroit, Mich., and Mike Donohne, Spokane. They were transferred to a ground floor cell. SMMIS IS PLEA DF ENVOYS Abolishment Found Impossi ble at London Disarma ment Conference By FRANK H. KINO Associated Press Staff Writer LONDON Feb. 11 (AP) Al though the Anglo-American effort I M A. to aoousn suomannes irom me high seas was thwarted today by the opposition of France and Ja pan, the five nations represented at the London naval conference, sitting in formal plenary session, voiced complete agreement to outlaw barbarous activity. They launched a definite con ference program toward this ob jective which delegates hope will be the beginning of the end of the wartime horror and peacetime death trap of the oceans. Briefly, the sea powers declared their stand on submarines as follows: Italy supported abolition In principle, contingent upon dras tic redaction in other classes of warships. -4 Great Britain, through A. V. Alexander, first lord of the ad miralty, proposed abolition in the general interests of humanity, based on the war time terror of the submarine and Its peace time calamities. Stlmson Takes Strong -Stand Against Sub Colonel Henry L. Stlmson of the United States delegation sup ported Mr. Alexander and later presented a constructive proposal for restricting submarine war fare. The most tensely dramatic moment of the session came when Secretary Stlmson declared: "The use of the submarine in the world war revolted the conscience of the world, and the threat of its unrestricted use against merchant ships was what finally determined the entry of my own country into the conflict. France maintained that the lesser naval powers could not do without submarines; that the submarine was only a death deal ing instrument like all other war ships, and like other warships, could and should be regulated and limited. (Turn to page.?, col 4) Spe cial Radio Broadcast to Be Held Today OREGON STATE COLLEGE, Corvailis, Feb-r 1 1 ( Special )- The next series of radio lectures or' heroines of the Oregon coun try in which Marion county club women have shown special inter est will be broadcast Wednesday afternoon at 3 o'clock over KOAC when Dr. J. B. Horner, director of historical research, .recounts the story of Madam Dorion, the holy woman of the Sioux, who was the heroine of Washington irvlng's book "Astoria." The Hubbard women's club has written Dr. Horner-that it is meeting at the hour of his week ly lectures to listen In as a group. Other groups over the state have expressed similar Interest. At Cleveland presented last week by the newly formed "council of the unem ployed." x . The rioters had gathered earl ier In the afternoon around the stone "soap box" In public square; where speakers shouted "we want work or wages, one or the two of well fight." .y- Gathering recruits they walked doggedly, behind - police escort to the city halt; determined to be present at the committee meet ing. Arriving at the hall those who .were ahead, of the line were permitted to enter the council chamber. " The remainder of the crowd lined op on the front steps, or were herded on the sidewalks across the hall on Lakeside ave-' nue. .. Inside the hall four' women had pounced on Jacob GrauL chief of police, and a sotaer policemen an- .ITuxn to pas h ftPi U F III EXCELLENT Representative Citizens of State Gather at Call Of Governor Permanent Economic Body Organized at Portland Meet Yesterday PORTLAND, Ore., Feb. 11. (AP) Representative Oregon citizens, called by Governor A. W. Norblad to Portland today for the first economic conference held in the west since President Hoover set the pace several weeks ago, found their state a lusty young ster with great ideas and possi bilities of growth and develop ment and laid the foundations for a permanent economic body which is expected in the future to ad vise how best to keep the wheels of progress and Industry rolling. At the conference Governor Norblad told the 60 or more rep resentatives that "prosperity de pends upon, the circulation of money, and I believe as does the president, who has prescribed construction in large doses' for the business structure." The governor outlined the po sition and resources of the state, then threw the meeting open to discussion. Nearly Hundred Million Spent On Construction George B. Herington, executive secretary of the Portland chapter, Associated General - Contractors of America, declared Oregon will spend 194,934,200 in construc tion during 1930, exclusive of public improvements before the people for approval at coming elections. - A suggestion by C. C. Colt, con ference chairman, for the ap pointment by the governor of a permanent body of 20 or more men to be called the Oregon eco nomic advisory board was an swered by the state's executive in the affirmative. "I shall appoint such a committee by the end of the week," the governor said. The members of the committee. according to a resolution adopted "shall be selected as to "he pro gressive and intelligent apprecla- lion of economic standards and tendencies and - their-1 exeeu tire ability . . . to lay plans to ad vance and make certain the pro per functioning of the various steps toward executing the com mitted and probable construction projects available now and here after." ... The board will serve without compensation. cbo conmiES E CHICAGO, 111., Feb. 11. (AP) Chicago showed today that it meant buisness against crime. The Cook county grand jury swung into action to back up the sweeping drives conducted by city and county authorities and laid a heavy hand on nearly a score of known gunmen brought before It today. Indictments were reported to have been returned against 19 men alleged to live by pistol and machine gun and bond on each was filed at $10,000. Meanwhile, spurred by public indignation at the recent outburst of murder and bombings, police continued to comb the half-world and by sunset had ferreted out an other 800 hoodlums and gang sters. The total lnmeshed in police toils and brought to the bureau of identification since the city-wide clean-up started Saturday is ex pected to reach 2,000 -by tomor- w and with another week of strenuous activity on the part of police. Commissioner William F, Russell hopes to have broken the back of hoodlum lawlessness In Chieago. Great s ( t OREGON HID CONDITIO Mill cm 1VE n- "11; r vlw,t4l BhssomD&Jfill' Be Advertised in ' . -Extensive Fashion A ... Plans for the annual ob servance of Blossom, day were launched at Tneeday. night's meeting of the Cfaer rlans. A publicity commit tee was appointed and given authority U arrange for a contest to obtain -new and attractive pictures which may be used in advertising the event. Members of the , committee are- Cberrians Olinger, Myers, Worth and Hixson. The proposal to deck the Chenians out In linen uni forms was discussed and the council of nobles instructed to obtain samples of the ma terial and prices and report back at the next meeting. It was proposed that the Cberrians hold picnic in lieu of one of the regular monthly dinners. There was some discussion of partic ipating in the Portland Rose festival again this year, but nothing was done pending word as to whether the fes tival will be held. STUDENTS TOLD OF PRINCIPAL S PLANS Salem High School Pupils Warned to Cease Hood ' lum Activities Salem high school students can produce a quiet assembly. That was clearly 'demonstrated yester day when Principal Fred Wolf called a special assembly to tell students of the plan he had de vised to keep assembly noises at a minimum. In a determined manner the principal told the students that he would no longer allow the in sulting conduct which has char acterized previous assemblies, and said that regardless of what the students thought of him, he was going to see that all talking was stopped and that In future, there should be no vacant seats during assembly. To make sure of these require ments, he announced that he would place a teacher every fourth row In the assembly, the Instructor to report any talking and the students found so doing to be confined to a smaller study hall for the -rest of the. year. Teachers were assigned to their positions and the 150 or so stu dents who hare been standing up asked to find seats, .further, upon dismissal teachers are to march out ahead of the students. That the plan is going to be a success was predicted following the orderly assembly yesterday. Students even gave hearty ap plause at dismissal as teachers left the room ahead of them. Moonshine Still Confiscated by Cops Last Night A moonshine still of the "wash boiler" type and 21 gallons of al leged liquor were discovered by Salem4 police and state prohibi tion officers who raided a house at 470 Locust street Tuesday night. Two men were arrested. One, who appeared to be the tenant of the house, gave his name as-Gus Martin, but the officers found on his person a driver's license made out to W. H. Houston. The 'Oth er was Jaek Clements. The "can" and 10 gallons of its product were transferred to the plocle station, the remainder of the liquid having been spilled when a five gallon jug was brok en at the time of the raid. BLAST WRECKS SHIP NEW YORK, Feb. 11. (AP) Raked by a fierce fire which followed a series of explosions in her hold just after her 349 pas sengers had been discharged, the North German Lloyd liner Muen ehen tonight lay wrecked at her pier. - Emancipator iLXy IsyCfrTri ttskx tmi esq g tjrsfzim ";rxa HUGHES TO BE f liiDl: SEiTf TODAY Borah and Glass Join Oppo sition Voicing Numer ous Objections Leaders Nevertheless Confi dent of Backing by Big Majority Vote By FRANCIS M. STEPHENSON Associated Press Staff Writer WASHINGTON, Feb. 11. (AP) Severe condemnation of the views of Charles Evans Hughes rang forth in the senate today at unexpected opposition to his nomination as chief justice of the United States developed and forced over until tomorrow a vote on- his confirmation. Senator Borah, republican, Ida ho, and Senator Glass, democrat, Virginia, assailed Hughes' atti tude on public questions. They stirred up a debate which brought two democrats Wagner and Copeland and .the veteran Senator Gillett, republican, Massachusetts, to their feet in praise of the nom inee. " Western Independents Lead Opposition The opposition to Hughes, cen tered principally in the group of western republican Independents, appeared overnight after the speech yesterday of Senator Nor ris, republican, Nebraska. Lead ers were confident toinght regard less that Hughes' nomination would be confirmed tomorrow by a decisive majority. The nomination was left as the order of business for the senate tomorrow. Senator Watson of Indiana, the republican leader, predicted a vote before nightfall and was likewise confident of a "decisive majority." The opposi (Turn to page 2, col 5) EHEED EXPLIS BECENT PURCHASES Hugh Rogers Assumes En tire flesponsibi!ity for Buying Manholes Entire responsibilty for the transaction- whereby three man holes and one extra cover made by the W. W. Rosebraugh com pany were purchased by the city through a third party, is claimed by Hugh Rogers, city engineer, who Tuesday branded attacks made by the afternoon newspaper on Alderman Rosebraugh in this connection as unwarranted. The three manholes were used in extending the Market street sewer to serve the Reid-Murdoch plant, Mr. Rogers explained; and he obtained them indirectly from the Rosebraugh foundry because the type of manholes used on this sewer line could not be obtained, at least on short notice, from the Salem Iron Works. The manhole cover was purchase for a similar reason to replace one near Ferry and Church streets which had been broken. Mr. Rogers said he bought these supplies through A. H. Moore, because Superintendent Colling of the Rosebraugh found ry refused to sell them direct to the city, citing the charter pro vision which prohibits council members from transacting busi ness with the city. As to whether this method of procedure was ethical or not Mr. Rogers said he was not worrying, inasmuch as the parties who are so indignant over this bill of ap proximately $45 remained silent while Mayor Livesley rented space In his building to the city for ap proximately a year and a half. "I don't owe Mr. Rosebraugh any favors, but I bay supplies when I need them and where I can get them," the city engineer concluded. Honored on Birthday Alliance Rumored Between Royal Families of Spain and Rumania 4 3:- '4 '' ,1 -'ms"'v -. : 'V W VV p v Reports In diplomatic circles In Bucharest that Prince Nicholas, ' 'member of the regency of young King Michael, soon would become betrothed to the Infanta Maria Cristina, second daughter of King Alfonso, of Spain. The report said the marriage would take place before the end of 1030. Prohibition O. K. Declares Edison Ultimate Enforcement to Be Achieved in Opin ion of Science Wizard; Opinions Written on Birthday for Newspapermen FORT MYERS, Fla., Feb. 11. (AP) Emphatic opinions on prohibition, disarmament negotiations, science and invention were scribbled with a stubby pencil here today by Thomas A. Edison, the electrical wizard, celebrating his 83rd birthday and answering ques-V tions from newspapermen. Mr. Edison believes that abso lute prohibition eventually will be enforced in the United States and that manufacture of light wines and beer in the home through modification of the Vol stead act 'would not aid temper ance. The Inventor said that the age of fully automatic machinery would find the laborer with a home and many new things-providing alcohol does not intervene. Faith Expressed In Disarmament Confab Belief that the London disarm ament conference will "arrive at a sane compact to limit future troubles," was expressed by Mr. Edison. He cautioned, however, that developments in electrical and poisonous destructive ele ments have ' not made a future world war impossible or improb able. The aged inventor, somewhat failing in health, but still active and alert, answered more than 20 questions. Asked regarding his health, and how old he actually felt, Mr. Edison's eyes twinkled as he re plied that he "generally felt 60 years, but lately some microbes have spotted me andv done some experimenting with my internal machinery, so I feel about 85." Mr. Edison who is recovering from a recent attack of pneumon ia, appeared to be in only fair health. Rumor Has Portes Gil Assassinated EL PASO, Tex, Feb. 11 (AJt) El Continental, Spanish language newspaper here, after investigating a rumor that Portes Gil, former president of Mexico, had been killed, tonight declared the rumor was unfounded in fact. THE SPEECH OF jGETTESBUSG BIS M0JT E&K003 DTTXBAWCE 'mm '"1 v " A!w 5 i V NEUNER NO LONGER II) Present Office Declared to Be Handicap to Effec tive Campaign PORTLAND, Ore., Feb. 11 (AP) George Neuner, United States district attorney, today withdrew as a candidate for the republican nomination for gover nor of Oregon. This action was said to hare been expected since the decision last week of 'Tom Kay, state treasurer, that he would not run. Remaining in the republican race now are Governor A. W. Norblad. Henry L. Corbett. Charles Hall and J. E. Bennett. (Turn to page 2, col 3) Oreg ifhuiv Oil to Briefs . Albany Won't Join ALBANY, Ore., Feb. 11. (AP) i- Reaffirmation of their with drawal from the State Game asso ciation was voted unanimously by members of the Santiam Fish and Game association here last night despite efforts of the Salem Rod and Gun club to persuade them to remain in the state body. The reason given by the Santi am members tor their refusal to remain in the association was the contract which member clubs must sign. Settlement Offered "PORTLAND, Ore., Feb. 11. (AP) Payment of $45,000 in cash and surrender of virtually all of her personal belongings, includ ing her home and jewels, has been offered by Mrs. James P. Cooke 10 j. u. uuungnam, inuiee li bankruptcy for the defunct brok erage firm of Overbeck and Cooke, in settlement of two pending suits against herself and her hnsband. who Is serving a penitentiary sen tence tor misappropriation of funds. Lightship Tested PORTLAND, Ore., Feb. 11. (AP) 'Under supervision of an offlciarboard, lightship No. 113. which will be assigned to Swift- sure bank, off the . Washington coast, underwent - trials today. Captain W. B. Hatheson of the Columbia river pilots was skipper for the occasion. , . Trail To Star; PORTLAND. Ore.. Feb. 11. CAP) Howard Polly, charged with larceny In connection with the resurrection - of bonds - sup posed to. have been destroyed with a recalled issue, will go on trial in circuit court here tomorrow. Polly, deputy prosecutors said. was chief engineer of tho Ameri can uanic Building nere, wnere tne securities of the Interstate Utili ties' company, .Washington con cern, were throws Into a furnace. Some of the bonds reappeared lat er at Dea Moines and San Fran- faaoji . CORNISH ARMS BOTELlg Second Exclusive New York Establishment May. Be Closed by Cops Nearby Restaurant Also Un der Supervision of Fed eral Dry Agents NEW YORK. Feb. 11 AP) Twenty-four hours after raid ing the hotel manager, federal prohibition agents tonight des cended on the Cornish Arms ho tel, In f 3rd street, and the near- j. by Cavanaugh's restaurant, one of the oldest and best known dic ing places in the city . Four prohibition agents who had been living in the Cornish Arms since January 1, swore out 10 warrants before United State Commissioner Francis O'Neill and nine agents and three feder al marshals went to the hotel with the warrants. At the same time, nine other agents, not armed with warrants, raided Cavanaugh's. One More Warrant Remains to be Served Nine of the ten warrants for persons in the Cornish Arms were served toiitght. The tenth war rant was for John P. Murray, des cribed by Major Maurice Camp bell, prohibition administrator for the New York district, as a receiver tor the hotel, which is In bankruptcy. Murray has been in Florida for the last five weeks. Major Camp bell said, adding that he expect ed him to be served there short ly by a federal district marshal. Two of the nine men arrested at the hotel were described, by Major Campbell as the hotel bar ber and the hotel bootlegger. The others were bellboys and waiters. Major Campbell said he had a much stronger case against thi Cornish Arms than against ISO manager, raided last night, siaee, he said, the bellboys had accepted money for liquor and made deliv eries. He added that he would seek to have the hotel entirely padlocked, not merely the reams in which the alleged offenses were committed. The prohibition administrator issued a warning to other hotels to cease liquor sales under pain , of badlock proceedings, if they do not, he also threatened to pad lock restaurants and night clubs which serve "accessories" to pa trons who bring their own liquor. He announced that irom now on persons who drink or display liquor publicly in restaurants and night clubs, would be arrested by federal agents. Heretofore, b pointed out, such arrests have not been made, but from now on such persons "must be prepared to accept the consequences of their law violations." BOMBS SHAKE- TRAMS NEW ORLEANS, Feb. 11. (AP) Three street cars were rocked by almost simultaneous bomb explosions tonight. flttnvimmB-n A ttmtt Hold Aloof From State Game Association; Cooke WUe Offers All She Has Pastor Given Call EUGENE, Ore., Feb. 11. (AP) The Rev. Bryant Wilson, pastor of the First Baptist church of Sacramento, Calif., has been ex tended a call to the pastorate of the First Baptist church pf Eu gene, it was announced today by the pulpit committee. It he ac cepts he will succeed Dr. C. L. Twain, who recently resigned and now pastors at Fresno, Calif. Women to Debate -EUGENE, Ore., Feb. 11. (AP) - To exchange arguments by ling uistic methods, three Eugene girls left today for Moscow. Idaho, and Pullman, Wash., where they will . . represent the University ot Ore- -gon in debates with co-eds at-the University of Idaho and Washing ton State college. Mary Klemm, . Margaret Edmundson - and "Flor ence Holloway, the latter acting ' as alternate. 'compose the Oregon. team. The local debaters will upheld the negative side of the question, "Resolved, that modern diversion of women free front the home to - business and Industrial occupation is deterlmental to aociety." Crash Proves Fatal PORTLAND, Ore., Feb. 11 (AP) Dr. William Rees, 8, re tired physician, died today at local hospital as the result ot in juries suffered Monday when his automobile collided with a street ear. He had practiced medicine in Portland for about 15 years, re tiring a year ago. He then sold his property, and took up bis resi dence at Nelscot! Beach, where he and Mrs. Rees lived in a log cottage erected i for them. ' ' Grades Are Perfect, EUGENE, Ore., Feb. 11 (AP) Securing a perfect grade in IS , hours " ot study,Mrs. polda C Wiekham, Roseburg. a sophomore in education, scored $5 points to lead the list of men andwomen students at the University of Ore gon In scholastic rates ratings Yer the fall term, the registrar's of fice announced today. Mrs. Wick ham scored the highest number.fc5v points obtainable by students a the nniveralty 0