-
4 .
. SERVJCE .
" We rnarantee our
. TIIE WEATHER
, Iacrcaaed cloudiness to
day, unsettled Snndt y,
probably rain; Mar. Temp.
Friday 62, Mln. 80, river
8.4, calm, no rain.
Her service. U) your paper
does not arrive - by B:SO
call 50O ana a copy will be
delivered. !
FOUNLDP0 1891
EIGHTIETH YEAR
Salem, Oregon, Saturday Morning January 31 1931):
No. 2C3
ri fl I II I f Mil T 1 1 m. i - i I . l I
i aii i i i i iiiiiiiiiiiiiiii
-'-i -' : 1'"' T '" ' i ' ': : ' 1 '' T ; - - : :
sissp ejwpssssa, sSTP ' BP"
II 1 r I I I i II
' - : . '.'(- -L
BILLS FOR TAX
OtiIKE
KiGOI READY
Will Drop Into Hopped on
Monday; one to;. Hark ,
- r Back to:i929 ; . '
No Breach of Faith, Claim
' Commission Members; .
Changes Noted
Two Intangibles tax jblll. pro
duced by the state tax commla
eion, are slated for Introduction In
the legislature early neit week.
The bills are alike sae that the
first ons . reaches back to 1929
and taxes intangibles on a differ
ent basis than the jaw (enacted la
1929 which the state supreme
court has held is unconstitutional.
The second bill provides for the
continuances of the tax in 1930
and succeeding years.
Technically entitled as the "In
dlTldual Income Tax Acjt of 1931"
the measures are In Reality in
come taxes solely on income de
riTed by indiTlduals friom all in
tangible wealth. The point on
which they differ fromj the 1929
enactments, now held unconstitu
tional, is" that only the; net from
the Income received bf an indi
vidual on rereniies from money
and credits is tfxed, whereas in
the former measures th gross in
come from intangiblef was as
sessed. " . I
Tay S Per Cent -
On Net Income 1 :
Under the two bills) to be In
troduced, indlrlduals rejcelTing In
come from Intangibles iwould pay
a 5 per cent tax on all the net
rerenue. after exemptions of 1200
for Bingle people and! $400 for
people who are married.
The tax commission J In. reach
ing back to the 1929i tangibles
revenue, declared" yeeltfrday that
It had not broken faith, witb its
former promises whlchj were cur
rently understood " to i pledge the
commission to refund jthe 18.94,
000 collected in 1930 on the 1929
Intangibles act. The commission
said it had made such promises on
the expressed prorisioii that the
refund would be favored only if
the present legislature was unable
to devise any method ot taxing all
intangible owners in 1929 on the
same basis. i
If the proposed law j Is passed
and held constitutional, the tax
commission said' yesterday It pro
posed to collect the residue of In
tangibles taxes not obtained la
1930 when the measure was taken
into court February 0, before
little more than half of the 1929
tax was paid. ' i
Adjustment of 1 1
Payments Planned
Certain adjustments ' would be
made with payers of the tax. said
(Turn to page 2, cbl. 1)
HYD10:EIEC1C
III TUESDAY
A public hearing- ; o Senator
Brown's bill provldingl for the
creation of a hydro-eleitric water
commission will be hfeld before
members of the Joint railroads
and utilities committees ot the
house and sen's te Tuesday at 8
a.m. This was decidedat a meet
ing of the senate committee on
railroads and utilities Friday. Re
ports indicated that a large num
ber of persons would attend the
hearing. j
The hydro-electric Commission
would be composed of the state
engineer and two persons to be
appointed by the govefnor. The
bill is designed to conserve the
water resources ol the state, and
has the Indorsement of jthe admin
istration, i
The senate railroads! and utili
ties committee voted j to report
out favorably Senator Burke's bill
repealing the law requiring cer
tificates of public necessity and
convenience. Senator Eberhard
did not Join In the report, al
though he said he probably would
vote for the measure.
The committee also I voted to
report out favorably a bill by
Senator .Woodward providing that
municipal corporations -shall be
exempt from filing power applica
tions with the federal power com
mission. - j
Marine Bodies
From Nicaragua
Reach Virginia
. - 1 s
NORFOLK. Va., ian. -30-
(AP) Fiv pine boxes contain
ing bodies of 'American marines
shot from ambush by Klcaraguan
Insurgents near Managua, . De
cember 31, lay at the j naval hos
pital at Hampton Roads tonight.
This morning they! were un
loaded from the U. S. 8. Vega,1
naval transport, and it Is expect
ed tomorrow -they will' be sent to
their final resting- places, i ;
Now Sees; Was
Totally Blind
r
u
i ;'v!
JlL.
: BOOTH TARKINQTON
NGTON
BATTLE IFOR LIGHT
Numerous Operations Aided
By. his own Detrmina-
j tion, Successful
1 By PAUL C. HOWE
BALTIMORE. Jan. 30. (AP)
With the aid of medical science
and his own determination. Booth
Tarkington has fought j his way
back from total blindness to the
beauty of light. r
"At present the picture Is a
smudge but I can distinguish col
or and form and my doctors say
that my vision will return," the
Indiana novelist said today as he
prepared to leave Johns Hopkins
hospital.
His fight for light started many
years ago and during the long
struggle cataracts' were1 removed
from both eyes and detached re
tina In the right eye corrected.
Last August, Tarkington revealed
today, be became totally blind.
Early this month be entered the
Wilmer Institute at Johns Hop
kins, for the final phase of a long
series of surgical treatments.
Another cataract -was removed
from his left eye. This week the
bandages were removed and the
(Turn to page 2, col. 4)
GUIT GETS
II
KLAMATH FALLS, Ore., Jan.
30 (AP) A lone bandit en
tered the ChUoquin, Ore., bank
this afternoon, forced J. O. Nich
ols, cashier, into the vault and
escaped with currency estimated
at $4000.
Nichols, reports here said, was
standing with his back to the
counter in the bank . when the
robber came up, placed a gun
against Nichols' side and ordered
him into the vault. After ob
taining the currency; he- locked
the cashier in the vault. Custom
ers who came in later heard
Nichols' calls and freed him.
The bandit was . believed to
hare f escaped In an automobile.
He was described as about 25
years old, five feet, nine inches
tall. He wore old clothes and a
tan hat.- : ' r i".
Soviet Exceeds
Expectations is
Meshlauk i Claim
:' ! .!-
NEW YORK, Jan.? 30 (AP)
Valery I. Meshlauk. vice chair
man ot the supreme : economic
council of the ; soviet ! republic,
told of the progress of Russia's
five year plan at the annual
luncheon of the ' American-Russian
chamber of commerce today
at a bankers club. F i !
The first two years of the plan
he asserted. Industries had ex
ceeded by four, per cent the pro
gress outlined for them and in
agriculture the production of var
lous erops exceeded from two t
30 per cent the expectations o:
the farmers of the program.
t raws
UK
The Legislative Calendar
1 HOUSE YESTERDAY
j Resident supervisor " of
dogs proposed in bill; gaso
line "cowboy" act amended.
I Monday said by Hamilton
to be last day for introduc
ing new bills.:: ,
! Three bouse bills and two
senate bills passed. .
t Co'ngress memorialized to
put embargo on wheat. ,
r SEXATE YFJSTERDAr
i Crook county salary of
.treasurer, increased. :
I Six Correlated i bills on
state banking dropped into
hopper. . . : ; t r -
COICT PAID
ELUDE POSSES
SECOND FJI6HT
Clues That Seemed "hot"
At First Fade out After
r p r officers Trace X r
Latest Report . Asserts men
In Portland; Regarded
( '--.As Dangerous Cons
t Lee Duncan nd Dan Flynn,
convicts who escaped' from the
state penitentiary here at 0:15
p.m. Thursday night, were, still at
large early this morning with the
officials here admittedly baffled
in their search. : . ;.
A clew from Halsey, where an
automobile was stolen yesterday
by two men, was thought to be a
warm one early In the day, but a
thorough-going investigation by
Warden Lewis at Halsey yester
day afternoon convinced the war
den there was little probability
that Duncan and I Flynn' had
made the theft and taken the
car on south. :
The search continued unabated
last night with 15 men divided
Into several parties, postsd in
strategic spots about the valley
checking avenues of escape for
the two prisoners. Radio mess
ages were being sent out ss well
as continuing wire notices to of
ficials throughout the Pacific
coast district.
Both Considered
Desperate Youths ' S
Both men are 2 years of age
and are considered desperate
(Turn to page 2, coL 1
The popular Scotch program,
presented as one of the regular
Friday night programs of the T
was given for the fifth consecu
tive year In the social rooms of
the Y. M. C. A. Saturday night be
fore an audience estimated at 600
people. Many people were turn
ed away for lack of room.
William McGllchrlst, Sr.. was In
charge. The bag pipe band, the
members of which were dressed in
costume, gave several numbers
which proved exceptionally pop
ular with the audience.
Soloists were Mrs. W. J. Lin
foot, Mrs. Gordon ' McGllchrlst,
Mrs. WHUam Eschapp, James Mc
Gllchrlst, Lyman McDonald, and
Robert Hutcheon. ;
Mrs. Ted Gordon was the ac
companist and Mrs. C. L. I Bowes
presented several violin . numbers.
A popular feature with the audi
ence was tbe.jerlea of character
dances gives by John Charge.
Mike Colster also pleased with
drum solos. ' - - i
In addition to the Scotch pro
gram the Y. M. C. A. was the cen
ter of basket ball games In both
gymnasiums, a swimming party
in the pool, and hand ball on -the
courts. In all about 1000 folk
enjoyed the Y Friday night.
Murder-Heart
Failure Case
Goes to Jury
i VANCOUVER, Wash.. Jan. 30
4-(AP) A circuit court Jury
was locked up here tonight t to
consider the fate of Waino B.
Makl, Portland, charged with the
murder ' of Andrew : Hindrickson,
of Hocklnson, Wash. ,
The state charged Makt attack
ed and beat Hendrickson to death.
The defense contended Hendrick
son died of heart failure. Makl
admitted under cross-examination
he had a "flght with Hendrick
son. "V i .;. ; i
CHILD IS SOUGHT
GRANTS PASS, Ore., Jan. 30
(AP) National guardsmen
were combing the hills 12 miles
north of here tonight In an effort
to locate the 2-year-old son of
Mr. and Mrs. Carl Houston, ranchers.-
, "
California asked In mem
orial to do Its part on Lake-vlew-Alturas
highway. -
HOUSE MONDAY ,
Third reading house bills
2. 21. 22, 20. 28. fl. 2, 93..
100. 104. r "
. House Joint memorial 7.
Third reading senate bills
33, 35. 30. 44. 47. 59. 09.
Senate joint memorial 4.
SENATE MONDAY
' Third reading senate bills
102. 9, 93. 10, 20. 07.
Third reading house bills
.35, 41.
10 Elw SCOTCH
PROGRAM AT Y.i
Doctor Braves
Storms to Aid
Suffering Men
JUNEAU, Alaska, Jan. SO.
"(AP) Braving . a blisxard " and
sub-zero temperature. Dr.: W. -A-Borland
returned to Kanakanak
from Toglac, 70 miles distant, to
day with two badly Injured men,
radio advices received by Gover
nor George A. Parks said here to
day. The men whose names were
not .given, - also ; were ' suffering
from frost bite.
The radio report said Dr.
Borland had amputated ' the leg
of ope. man and both feet of an
other. The j reports did not say
how the men were Injured. Dr.
Borland 1 with the Alaska bu
reau of education. Toglac is on
Toglac bay, west and north ot
the Alaska, peninsula. . '
WATER PURCHASE
.CASE RE-
Whether Petitions Filed or
Checked First, Moot
Point for! Court
Decision on the Salem water
ease Is expected from Circuit
Judge Gale S. Hill the latter part
of next week, following rear
arguments presented before the
Judge yesterday-afternoon by. At
torneys Keyes and Adams for
the water company and Attorney
Trindle for the city.
In re-arguing the case yester
day on two Questions presented
by the Judge, the. water -company
attorneys alleged that the peti
tion filed in the matter was not:
filed until It had! been checked J
which would . mean It was filed
2 days, rather than 30 days
prior to the election, Inasmuch as
five days were required for;
checking. Water company attor4
neys also claimed the election at
which the vote was cast was not
a general election. U
' Attorney WT H. Trlndle "lor the
city argued that the petition had
to be filed before it was checked.
and that the election was a gen-j
eral one.
v I
The suit is one to test 'valid-'
lty of the charter amendment un
der which the city seeks to take'
over the plant of the water' com-j
pany. In 4t, W. H. Henderson ap-j
pears as plaintiff and F. G. Deck
ebach as intervenor. :
PORTLAND, Ore., Jan. 30
, (AP) Nelson C. Bowles, young
Portland millionaire, and Irma
G. Loueks, Ills former secretary,'
Indicted for murder, cannot ob
tain a fair and impartial trial in
Multnomah county, said affida
vits filed in the county clerk's
office here today in support of a
motion for a change of venue.
Bowles and Miss Loncks were
indicted last month for the mur
der of Bowles' wife, Leone. Mrs.
Bowles died from knife wounds
inflicted while she was in Miss
Loueks' apartment. The defend-j
ants told police she -stabbed her
self. V i I
The motion for a change of
venue was filed by W. Lair;
Thompson one of the defense at
torneys. The supporting i affida
vits bore about 1600 signatures'.;
District Attorney Lotus Li
Langley has not announced what
course he would take to oppose)
the motion. j
Mildred Arnold
Prevents Leslie
Getting Divorce
Plinrcvix. ,' - Arlx- Jan. 20
(AP) Leslie P. Arnold, former
army around-the-world flier, was
denied a - divorce from - Mildred
Averv Arnold In Maricopa coun
ty superior court tonight. I
. The former war nurse, wno
succeeded "more than a year ago
fn havinr a nrevlous decree ob
tained by Arnold, reversed by the
Georgia supreme court, won a
three-day battle of depositions to
maintain her elalm of wifehood
over that of Priscllla Dean, mo
tion picture actress, vnom at
nold married at Agua i Caliente,
Mexico. I
Buck Indicted
In Death Case
PORTLAND, Ore.," Jan. 4 0-t
AP) The Multnomah county
grand Jury today Indicted Dr.
George H. Buck. Portland physi
cian, on a charge ot . man
slaacbter. i
The, charge grew out ot .'the
death of Helen Cleator upon
whom Dr. Buck Is alleged to
haver performed an illegal oper
ation. . j
Bail was set at 5000.
ARGUED
SlES ISSOUfiHT
HEFLirj AVERS
BUTLER STORY
If BE TRUTH
' ' . i .. i - . . . i
Opposes Courtmartial
; : Mussolini : didj run
'Over' Child 1
If
Preparations for Trial go
Ahead at Washington;
Court Is Chosen ;
WASHINGTON. Janu 30 (AP)
Premier Mussolini; had "al
ready forgotten" Major General
Smedley D. Butler's Philadelphia
speech tonight but an approach
ing courtmartial forcibly recalled
It to the fighting marine.
While the first ripple of com
ment swept across congressional
waters, preparations went ahead
for the prosecution and defense of
the marine ' who distinguished
himself in carrying the battles of
the sea soldiers to their enemies
all around the world. I ,
Mussolini cabled Italian Am
bassador De Martlno that he had
felt sure be "would obtain Just
and prompt redress from the fair
ness and loyalty and jthe friend
ship of the American govern
ment" ..'.):: i -
Ha Instructed the ambassador
to "communicate to the federal
government that I consider closed
the Incident which, for my part I
have already forgotten."
Heflim Wonders if
Story Isn't Trn
-. In the senate, Hefllin of Alaba
ma demanded that before Butler
was disciplined an Investigation
be made Into the truth of the
statement that Mussolini ran over
a child and did not stop. 1
, ' "It sounds exactly like- Mussoli
ni," Heflln said, recalling "I stood
here: three years ago and related
stories of Italian -Masona. being
murdered at the instance of Mus
solini. There were 137 ot them
in one' night if I remember Cor
rectly." . . . ' I..
"Why should any! American
general bow down and crawl in
the dust to the most 'red-handed
tyrant on earth Mussolini thai
monarch of tne old world 7 - I ,
Late today,! Secretary Adams
approved a list of six rear admir
als and one major general of the
marines for the court to try But
lers The list included:: i
-Rear Admiral De Steiguer, pre
sident of the eourt and comman
dant of the third naval district at
New York; Rear Admiral Phelps,
commandant of the Portsmouth,
N. II., navy yard; Rear Admiral
Taylor, head of the plans division,
navy department; Rear 'Admiral
Clark, director of fleet' training
at the navy department: and- Ma
jor General John H. j Pendleton,
U. S. M. C, retired, of Coronado,
California. r i j
, . : i : . . ! .
K.
. . - i.
PROHI CHIEF AGAIN
PORTLAND, Ore., Jan. 30.
(AP) William K. Newell re
ceived word today from Amos
W. W. Woodcock, national pro
hibition director, that ne baa
been returned to his former po
sition as deputy federal prohibi
tion administration Jfor Oregon.
Announcement of the appoint
ment also was released at Wash
ington. , l-;;.- r .
Newell succeeds Jesse E. Flan
ders who succeeded Newell last
summer after Newell j had been
suspended for failure! to accept
another assignment after the pro
hibition bureau , had been trans
ferred from the treasury depart
ment to the Justice department.
North Bend Man
Drowns When He
Falls Off Boom
' - : ! j; t. i
' MARS HFIELD, Ore. J Jan. 0
(API Ray C. Smith. .35 of
North Bend, drowned I list night
when he fell from a log boom on
Isthmus Inlet, , Julius Conrad and
Peter Nellson, who were with him
were thrown into the water.
Thelman Smith, 21, a port dock
employe, rescued Conrad and
helped Nellson to safety. He at
tempted to save Smith but became
exhausted and was taken from the
water in, a semi-conscious condi
tion. "-I'v--. m::
German Flying
Boat Leaves on
- f Hop Over Ocean
LISBON, Portugal; Jan. lj
IAP1 Tba DO-X. siattt Herman
flying boat, left here at 8:08, a.
m., EL S. T., for Madeira and the
Canary Islands the first lap of a
traas-Allan tic trio to Rio de Jan
WILLIAM
JEWELL
eiro, Brazil. l : ; j ,
Departments Plan j
Appropriation of $20,000 for! This Purpose is
Asked of Ways and
:,' ''Cleanup"-
; Governor Meier yesterday
nouse ways and means committee into his office and in
formed its members that he intended to make a special in
vestigation of every state department and institution, "be
ginning: at the top and working:, right down the; lineV
The governor asked the committee to appropriate $20,
000 to cover the cost of the ln-O
vestlgatlon. 1 ,
Declaring that his motive was
one' ot economy and that the
move i was in line with his de
termination to be a business
manager for the state, the gov
ernor i said he believed the ap
propriation would pay for itself
"twenty times over". I
A number of other smaller
amounts were requested by the
governor, making the total ap
propriation requested for the ex
ecutive department ' 960,796, or
325.070 In excess of the appro
priation recommended by the
former ' governor, A. WJ Nor-
blad. ! ,
Will Ask Advice
About His Salary
Relative to his salary, a sub
ject frequently mentioned in the
campaign last year, the govern
or said be was going to ask At
torney General Van Winkle
whether the $7500 'remuneration
fixed by law or the 11500 a year
salary: provided In the state con
stitution is the correct amount.
"I know," said Governor Mei
er In ; commenting upon his pro
posed j investigation, 'that some
of these state offices are ' filled
by-Tery good men. i But there
are many offices and commis
sions that need cleaning up. That
Is the purpose of the special in
vestigation fund. - Requests for
my approval of trips by officials
are frequent." - Already" I hawrftwewn to have- tnretrBrne men,
stopped five; trips east and in
one department I have approved
one man's going to Salt Lake
City, Instead ot three as re
quested." ' - :
PORTLAND, Ore., Jan. 80.
(AP)--Higher monthly compen
sation will be paid to workers per
manently disabled in Oregon in
dustrial accidents if the legisla
ture adopts a recommendation to
be made by the Interim legislative
committee. . !
The recommendation, together
with others, will be filed with
Governor Meier in a few days.
Henry. L. Corbett, chairman, ' Is
drawing up the report In Its final
form.:' , .. I '';!' ; . -At
nresenf workmen under jur
isdiction of the state Industrial
accident commission receive com
pensation on a basis ot wage loss
which continues during the heal
ing period or until the workman's
condition is stationary. An inn
married man may receive a maxi
mum of $55 and a married man
maximum of 897 monthly. If
the workman remains a cripple,
he draws a monthly compensation
of 825. or $30 If totally disabled.
. . j,.
Attack Renewed
On Enforcement
I--.-, p .. I ; '
CHEYENNE, Wyo.. JahJ SO
(AP) A bill to abolish the state
law enforcement department of
Wyoming, similar to one ! killed
in the senate yesterday, was In
troduced in the house of repre
sentatives late today. Both meas
ures were designed as an attack
on prohibition in Wyoming. ,
Votes Bought,
Witnesses
WASHINGTON, Jan. $6
(AP)A charge votes I were
bought for former Senator Thom
as F. Bayard In the 1930 ! Dela
ware ; democratic convention
which nominated him for anothJ
er senate term was made ! today
before i the senate campaign
funds committee. -
It came from Wright Diier, a
friend of the late Joslah Marvel,
wbo lost to Bayard. He added
while! he was not certain of the
source of funds used for Bayard
the "general suspicion is that It
lay between" John J. Raskob,
chairman of the democratic na
tional committee, and Pierre S
Du Pont, wealthy Delaware man
ufacturer. : " 1-
Dlxer. an unsuccessful candi
date for the house at the pri
mary,! said the democratic nation
al chairman appeared on the
platform at the state convention
to "see the goods delivered that
were bought and paid for Bay-
PROPOSE USE
'f COMPENSATION
Means Committee;
is Forecast
called trie joini senate and
'BAD JOHN' jDHTi
OF VIRGINIA DIES
Man who Inspired Charac
ter in John Fox's Novel
Has Unique Record
. i j
POUND, Va., Jan. 80. (AP)
"Bad John" Wright, wbo made
the law feared in j the mountain
country where he himself had
been a feudist, Is dead.
The Inspiration for '"Devil
Judd" Tolliver in John Fox's
"Trail of the Lonesome Pine,"
Wright In his 8 8 "years had an
even more colorful career than his
fictional counterpart. His 40
years as a peace officer In the
Cumberlands, where success often
depended on a steady nerve and a
lightning-like trigger' finger,
brought him fame and a host of
friends In his native hills.
"Bad John" died' early today In
his little mountain cabin near the
Kentucky border. He had been In
bad health many, months.
Wright, who was definitely
never' took a life as a peace offi
cer except In the Case of the fu
gitive refusing to submit to ar
rest It never wks established
whether "Bad John" killed any
one in the famous Wright-Hall
feud in which a number of men
were killed. In later years he re
fused to discuss the feud.
THREE EXECUTED
FOR SAME MURDER
COLUMBUS, Ohio, Jan. 30.
(AP) Three men died In the
electrlo chair at the Ohio peniten
tiary tonight They were Fred
Massa, 27; Earl Sites; 27, and
Kennety McCartney, 25, all of
Mansfield, Ohio. They were put
to death for the murder of Ralph
Wilcox, Galcion filling, station op
erator, during a holdup on June
27, 1830. ' " ... i '. , ' .
Thirty-two minutes were re
quired to electrocute the trio, the
second triple election in the his
tory of the Ohio penitentiary.
. The death chamber was crowd
ed to capacity with newspapermen
and witnesses as tne first of the
condemned murderers. Sites, was
led in. He was pronounced dead
at 7:41 p. m., after the usual
three shocks. . j
McCartney was second. He was
dead at 7:50 p. m. Last came the
trigger man In the Wilcox mur
der. He was dead at 7:59. p. m.
. The condemned men were cool
and collected as1 they
came
through the
chair.
final
door to the
ESKIMOS ON TOP
SEATTLE, J4n. j 30. (AP)
Staging a sensational third per
iod uphill battle, the Seattle Es
kimos tied Portland 2 to 2 - here
tonight to take the lead In the
Pacific coast hockey league.
Delaware
Tell Probers
A majority of the delegates
were elected, he said, with In
structions to vote for Marvel but
many "switched their votes."
' Marvel plaeed Raskob's name
In nomination fori chairman of
the democratic national commit
tee in 1&2S at New York and
"was largely responsible" for his
selection, Dizer testified.
Bayard was defeated ' In the
election .by Senator Hastings, a
republican, running tor reelec
tion, "'v. j '
The Investigation of the Dela
ware elections was I completed to
day. Chairman Nye- said it was
made primarily for, the purpose
of revealing shortcomings in
Delaware's primary . system in
which delegates axe elected to
party conventions and then per
mitted to cast secret ballots for
candidates.
John Hammond, Georgetown,
delegate, druggist; said "they
went out and bought , delegate
votes , for Bayard."
AUDIT IttiLS
214,033 LOSS
OVER 3 IfElS
Ratio of Liabilities to A;r
sets 2 to 1, Says; Ds
tailed Report
A
Reduction of Inventory is
Large Item; Analys'13 '
. Given by Kubin
A loss of $214,032.64 for the
state flax and lime Industries at
the state penitentiary is disclosed
by the audit completed by Otto F.
Kubin of the auditing division of .
the secretary of state's office.
The report covers the period
from September 30, 1927, to
September 30, 1930,1 and Is oa
file In the office ot the secretary I
of state. Of this $214,033.64
loss, $70,177.85 is attributed to
"net loss from operations";
$143,665.79 to reduction of in
ventory of flax products; $259
loss from sale of automobile.
The audit further rereale a
ratio of current liabilities te
current assets of two to one, re-
marking "a desirable condition
would be rererse". The loss on
bad accounts for the period Is
given as $6,561.83. None of the
accounts receivable are secured.
The Oregon Linen mills was la .
debt to the state flax Industry oa
the final date of the audit. 3,20,
886.49. Col. W. B. Bertram,
manager of the state flax indus
try, was manager of the Oregon
Linen mills when this indebted
ness accrued.
Cost -Records
Lacking k
-The report notes a lack ot
cost "records covering the manu
facturing processes; and relate
that no adjustments for depre
f (Turn-to page 2, coL 2)
PILOT SET SOU
., Jan. 30
PORTLAND, Ore.,
(AP) Funeral services for Wal
ter E. Case, 39, air mail pllet
who crashed to his death on Bal
dy mountain last week, will be
held here Monday afternoon.
The body of the dead pilot was
brought out early today by a res
cue party that toiled for 26 hours
In the face of bitter winds to
reach the wrecked plan -and re
turn to Skye, the nearest settle- ,
ment.
Case left Portland at 6:30 a.
m., January 22 to take 250
pounds of mail to Pasco, Wash.
He was last heard from at 7:04
that morning when he radioed
the Portland airport he was fly
ing above the outskirts of Port
land, evidently confused by the
fog. The first Indication of hts
fate came Wednesday when AI
Davis, Varney pilot, sighted the
wrecked plane.
Rescue parties immediately
were sent out and reached the
plane yesterday. They found Case
in the cockpit of his plane, dead.
His dash board clock had stop
ped at 7:07.
Book by Cause
; To be Reviewed
Oyer the Radio
"Pilgrim and Pioneer Dawji
In the Northwest," by John M."
Canse, will be reviewed la a
book talk to be broadcast over
KGW Sunday night, commencing
at 9:45 o'clock. Richard O.
Montgomery of the J. K. Clil
company will give the talk,
through arrangements made
with the Methodist Book con
cern. Dr. Canse was president c?
Kimball School tf Theology un
til It was disbanded. lie Is now
at Montesano, Wash.
Hall Also. Wins
Over Ex-Champ
CHICAGO, Jan. 30. (AP)
Allen .Hall ot Chicago handed
Johnny Layton of Sedalla. Mo4
one of the worst defeats in his
brilliant career tonight, defeat
ing the, former champion, 50 to
29 In! 33 Innings for second place
money. In the world's three-cush- 1
Ion championship tournament,
New Capitol of r
Alaska Occupied
'.' JUNEAU, Alaska, Jan. 30
(AP) Occupancy , of Alaska'
new capitol building began bore
today - with the customs offic
first , to be Installed. The gover
nor, George A; Parks, will take
possession of his new quarters
Monday. Other departments wl
be Installed immediately.
HEM M l
i