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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 28, 1931)
t i ! . - - .1 ' ? - " ; " i . ' - . . ' -.Mi -:-.:'v . ' ": . ' , SERVICE We guarantee our car rier service. If your paper does not arrive by 6:80, call 500 and a copy will be 4ellvered at once. - THE WEATHER. ; : I Unsettled followed by 1 rains today and Sunday, .no ' change in tempera m re f Max. Tenip. Friday 47, Jlin. AO, rain .12, rlrer J.8, - FOUNDED 1&5! EIGHTIETH YEAR Salem, Oregon, Saturday Morning, February 28, 1931 No. 225 Commission Orders PufiH oi Salem Water 2 chiton COPflY GIVEfJ - - . - - -DAY PERIOD TO FINISH JOB Public Service Group Hands Down Order Following Recent Hearing Officials of Utility Await Outcome of Parley on Purchase, Stated Construction of an adequate fil tration plant or the adoption of other means to Insure a supply of potable water for the city of Sa lem, Is demanded of tbe Oregon Washington Water Service com pany In an order Issued late yes terday afternoon by the public service commission. Tbe commis sion's order calls for completion of the Improvements within the next 90 days. The order of yesterday results from a hearing held February 18 when the city of Salem, represen tatives of local canneries and rep resentatives of tre water com pany appeared before the com mission to present facts on the present status of water supply in Salem. The city and canners contend ed that the water company was net meeting the requirements of tbe Oregon code which,' requires "every public utility 1st required to; furnish adequate and safe serv lef, equipment and facilities.' Held Serrice Is - " - -X6t Btit actory i, , - : After reviewing the statu, of water service in . Salem over the last three years and pointing out the law's provisions relating -to ntlllty service, the commission finds, as follows: That tne serviee. equipment and facilities furnished by respondent. Oregon-Washington Water Service otnpany. are inadequate and on- safe for tne tarnishing of palat able, pore and satisfactory water to Its patrons in the city of Salem, Ore.: That the character and quality of the serviee provided has at times been unsatisfactory in that the, water furnished the consum ers; contains objectionable tastes and odors; hat in ordesito provide ade quate and sate service, equipment and facilities for the future the Oregon - Washington Water Serv Icejcompany should be required to install an adequate filtration plant or I adopt such other and proper means as may seem meet by the respondent, t)regon - Washington Water Service company, to insure a supply of potable water which is free from malign bacteria and will meet .s nearly as possible the requirement of the state board of health for drinking purposes, and said water should also be odorless and tasteless; That an order should be made by the pubhe service commission (Turn to page 2, coL 1) Child Welfare Study Approved By Senate Vote The senate Friday adopted a house resolution Introduced by Representative Lee providing for tbe appointment of an interim committee to conduct a study of enelM and laws affectlnr de pendent and delinquent childrenj The committee wouia do appoint ed by the governor and serve without compensation. The report of the committee . will be filed: with the 1933 legis lature. Advertising in The Statesman Pays, Pays 'Bill' Basick J Increased advertising pays, fcay "Bill' lSosick of the Market. Bnsick I has -doubled his advertising in Tbe States man the i past two months, and fa January his business increased 85 per cent and In February it Is hitting 90 per cent higher than for the same month last year. "It's a remarkable situa tion, because merchandise is selling at lower figures than a year ago. And still I dou-' ble the business, says air. Buslck. Baslck has tried to main tain, policy of lowest prices possible consistent with good business, and It Is to this good merchandising, togeth er with the Increased adver tising, that he attributes doubled 'business In spite of lower prices. Arbitration Offer O f Water Company Told City Elliott Proposal Involves Dropping Appeal on Past Bond Ejection; Representatives - Of City are Noncommittal A DEFINITE proposal on the part of the Oregon-Washington Water Service company for arbitration on the value of its plant with the city of Salem preparatory to the acquisition of the property by the municipality, was laid before Mayor Gregory, City Attorney Trindle and Aldermen Purvme and Kowitz at an informal meeting held last night at the city hall. President El Hott of the water company rep resented that firm, wi.h Walter B. Keyes attorney, and T. J. De laney, northwest manager, sit ting in at the meeting. The company's proposal will be submitted in writing to each councilman this morning and an executive session of the council has been called for 3 p. m. this afternoon at the city hall when that body will consider the pro posal, before subsequent discus sions of the matter with water company officials. The water company proposal, prepared in the form of a con tract between tbe city and the company, provides, in brief, the following procedure: 1. Mutual agreement that pending appeal of May Iff, 1930, charter amendment providing water company purchase be dropped. Z. Appointment of one arbi trator by the company and one by the city to proceed with, an appraisal .of - the water company en the basis of value. 3. Agreement that In ease "the arbitrators cannot meet on terms, they be empowered to se lect a mutually agreeable third party, the decision of - the three to be the arbitrated value of the property. 4. Resumption of filter plant construction and its early com pletion with the city agreeing to expenditures as approved by Its representative checking company expenditures and by a board of three certified accountants. 6. Submission of another city (Turn to page 2, coL 1) PREJUDICE CLAIM IS FILED BY LUPER Charged with Iareeny of public funds on secret indictment by the grand Jury, Rhea Luper, state en gineer until a few months ago, yesterday morning appeared to answer the charge. Luper came In of his own accord and while Judge L. II. McMahan was in Al bany. He was allowed to go on flftOO bond, and immediately filed affidavit of prejudi c e against Judge McMahan. Luper declares in his affidavit that the. judge is prejudiced against him and asks that the ease go to trial in another depart ment or that some other judge be called In to sit in the case. Luper's indictment, made Feb ruary 25,' came following a John Doe presentment outlining action surrounding the case of Luper handed to the court by the grand Jury. While legality of the Indict ment has not yet been attacked. Oscar Hayter of Dallas, attorney for Luper, said be will do so on grounds that the grand jury which made It is not legal be cause the circuit Judge made no order continuing the jury from the October to the November term ot court. The judge and dis trict attorney do not agree on the law continuing the jury. Protection of Lawful Fishing Gear is Voted The senate, by a vote of 18 to 12, Friday passed a bill Intro duced by Senator Moser provid ing for the protection ot lawful fishing 1 gear . on . the Columbia river-The measure was defeated in the senate Wednesday. . Pas sage of the bill was opposed by Senator Francisco vich, who de clared that the legislation was not desired by the fishermen at the mouth of the Columbia river. Senators Moser and Staples said the bill was intended to curb unlawful : operations, and would not interfere with the activities ot the honest fisherman. EDDIE THOMAS WIXS PORTLAND, Ore.. Feb. 27. ( AP) Wildcat Carter, Everett. Wash., took a severe beating from Eddie Thomas, Belllngham. In six rounds of a main : event boxing card here tonight. Leaders Ml MARCH COMES ISdlL- Here's Hoping she Roars; Moisture Shortage is Dwindling, Shown ' Tomorrow will dawn the first day of March. Will It be calm like a lamb, a few of which are even now frisking about over the wet fields, or will it be roaring and threatening like a lion beat en of Its prey? The saying is that which ever way It comes In, It will go out in opposite manner if that be true let it come in with a roar and have it over with withheld roars are nerve rack ing. . v. An effort was made to bet with the weather man as to the humor of March 1, but he would not venture. All that can 1e done la to take a look at the past few days and count our blessings tor It Is "wjth, great pleasure" that the announcement is made that the moisture shortage over, last year has been caught up to 4.72 inches as against last yean At that you can't start growling about the rain for the river Is still too low for ease. ', Painful Shortage Rapidly Reduced The rainfall comparison has been made with November, De cember, and January a year ago as against the same months of this season. February has done very well by the rain shortage. Between February 20 and 2Sthe following amounts of rain has fallen: .12; .8; 0; .32; 0; .11; and .25 of an inch. ; The river readings for' the same days were: 4.2; 4.2; 3-4; 2.8; 2.7; 2.2; and 1.8 feet above sero. One and eight tenths of a foot above low water mark in Febru ary does not speak so well for July. Just as a matter of Interesting comment it is noted that the rain fall for December, 1929, was 10. 5 inches; December, 1930, 3.98 Inches. Also that the rainfall for January 1930 was only 3.98 In ches and for January 1931, 6. 75. ' ' AH of the above just- goes to prove that there Is no use look ing for trouble because there was not as much rain in December as usual for what Is usual? Walt until It Is all through raining and then see how the weather man has "done by you." Take up Stock , Of Miles Firm; Money on Hand . ' . Flrty thousand dollars was de posited with Ladd tc Bush yester day by F. J. Gilbralth of the Miles Linen company for taking up the preferred stock Issue of that amount. The stock was called in some weeks ago to be redeemed in cash at par. The only class of stolk now outstanding Is tbe common stock. The company has no bonds or funded debt. IMDT1 The Legislative Calendar -i House Today! Third reading House Bills 403, 409, 410, 411, 412, 413,- 415, 407, 350. ' " House Joint Resolution 18. ' ' Third reading Senate Bills 78. 170. 179, 188, 205. 233, 238. 273, 284. 300, .305. 307, 317. t Senate Joint Resolutions -.11. 3. noose Yesterday ' ! Voted down by decisive Bynon measure provision tor refund ot 1894,000 in tangibles tax. - N Approved butter grading bill. " Approved $40,000' appro priation for new armory ' LaGrande. . SENATE GIVES FINAL PASSAGE Vote in Defiance of Veto Is Heavier Than Upon Original Ballot Debate is Heated, Gallery Mostly Opposing Bill Roars and Hisses WASHINGTON, Feb. 27 (AP) Congress today opened the treasury to Increased loans to World war veterans over the ob jection of President Hoover. Heated discussion of the mer its of the measure several times brought roars and hisses from the galleries . where advocates were noticeably in a majority. A remark by Senator Hastings, republican, Delaware, in opposing the bill that it would lead some veterans "to steal" their Insur ance certificates from their wires and to squander their, loans in riotous living provoked a storm of debatev More republicans voted today' to override Mr. Hoover's veto than originally supported the measure, 36, lining up behind It today as against 34 on its first passage. Only Senator Watson, of Indiana, the republican leader, changed his vote in response to the veto. Democrats Solid Against Veto - v The bill passed the senate pre viously 72 to 12. Some of the absentees on that vote were pres ent today. Democrats with one exception voted solidly against the veto. Senator King, democrat. Utah, joining with the Iff republi cans supporting the president, . A statement by Mr: Hoover In his veto message that the legisla tion might necessitate an increase in taxes was challenged by Sena tor Vandenberg, republican, Mich igan, who contended that $735, 000,000 in securities In deposit as a reserve for the Insurance fund were available for the loans. Aside from this reference to the veto, the senate seemed anxious to ballot and cries for a vote went up almost every time a new speaker took the floor. There was never any doubt about the out come. 411 CHIEFS Will MEET HERE TODAY Four-H club leaders from all over Marlon county will meet here at the chamber of commerce to day for the second local leaders' meeting called . by W. W. Fox, county club leader. It is probable that the main item of business will be organiza tion of a Marlon County Local Leaders association, as a more to that end was initiated at the meeting about a month ago. Miss Andrey L. Wiencken, as-. slstant state club leader, will be tbe main speaker, the most of the program to be devoted to round table discussions and a cookery demonstration by the McLaughlin school team under leadership of. Mrs. Emma O. Wolfard. The session will open at 9:30 o'clock. Population of Prison Now 940 Population of the Oregon peni tentiary reached a new high mark of 940 Friday night. Included among the convicts are 32 wo men. One more woman and three men were expected to be pressed in today. Senate Yesterday Approved numerous house appropriation measures. Disapproved Mott resolu . tlon for constitutional pro- - hibition of direct property taxes for state purposes. Senate Today. - Third reading Senate bills 297, 345, 327, 353. 354, 355. 355, 200, 248. . Senate Joint . Resolution 14. . Third reading House Bills 335,. 342, 340, 317. 177. 297. 63, 355, 31910. 390. 99, 98. 345, 188, 1(4, 312,, 375, 288, 79, 402, 403,379. 378, 236. 398. 397, 318. 144, 371, -349. 394. 107. 33, 341, 325. 352, 391. F Intang ibles Refund Defeated, by House; Excise Bill Argued Industries Representatives Object to Raise in Rate; Claim 8 per Cent. Will Drive v Business to Other States OREGON'S tax situation provoked arguments in the state legislature and the offices of Governor Julius ll': Meier, today as leslation was passed and discussed on this major matter now before the house and senate. While business men from Portland, representing; some, of the larger indus tries of the state protested the increased excise tax, the uouse aeieaieu m measure 10 re - turn Immediately the 3900,000 collected under the 1929 intangi bles tax Jaw, declared unconstitu tional by the state supreme court. These two features marked the day in the state capitol, but did not prevent action on more than 50 other bills, mostly by the sen ate, which went a long way to ward clearing the calendar of both houses to date. ": Immediate refund ot the In tangibles tax money collected un der the 1929 law was defeated on the ground that another bill, sponsored by the tax committees and which Is a'part of the state tax program now before the leg islature, provided for the refund of the entire sum contingent up on the decision of the UnUed States supreme court. The case of the 1929 law will be appealed, and If the decision of the lower court upholds the state court, the new bill provides for the return of the money. The new bill was later passed by a large majority. While debate ton this tax issue was in progress in the house un der special order, & delegation of (Turn to page z, col. ) STATE POLICE USE F Hookup Between Capitol and K0AC Station Provided For in Resolution Following closely upon passage of tbe so-called state police de partment bill in the senate Thurs day and the assurance that the measure will receive favorable consideration In the house, the senate Friday approved a -resolution authorizing the secretary of state to connect by remote con trol the radio broadcasting sta tion At Oregon State college with the state capitol building. The broadcasting station is owned by the state. Senator Eberhard, In his ex planation of the resolution, de clared that the , connection be tween the state capitol building and the broadcasting station at Corvallis would prove effective in administering the activities of the state police department. In event the state police department bill is approved in the house, the (Turn to page 2, col. ) Anti-Property Tax Resolution Is Voted Down The senate yesterday post poned Indefinitely -a resolution introduced by the agricultural committee providing that no ad valorem tax shall be levied upon real or Intangible personal prop erty In the state of Oregon. The resolution .was reported out ad versely by the senate committee on assessment and taxation. A similar resolution Intro duced by Representative Mott In the house was defeated. Condolence s is Sentby Sjenate - The senate Friday adopted re solution of condolence In connec tion with the death of the, late Samuel HilL The resolutions will be signed by Governor Meier, Pre sident Marks of the state senate, and Speaker Lonergan of the house of representatives. Copies will be sent to members of Mr. Hill's family. - W. U. Debaters Beat U. of W. ' Willamette university debaters, Charles Glanoll and Ross Knotts, freshmen, - defeated a- University of Washington squad two to one In a debate at Waller hall last night. The Willamette team ar gued the negative of the question. Resolved. That a policy of free trade should be adopted by all na tions. . 0 RADIO AvORED " COUNTY TIX LEW Lower by $9 1,537.92, Final Draft by Assessor Now Indicates Santa Claus with a bulging pack of toys would be no more welcome to the children of Mar lon county than yiU be the word from County Assessor ' Oscar Steelhammer's office that the county tax roll has . decreased 891,537.92. with a total of 32, 02C.4C8 this year. Payments on the new tax roll may be made any time beginning Monday, for the county assessor has turned the roll over to Sher iff Oscar Bower. Reductions are noted In the state and county tax, the state levy dropping 1991.68 and the county ' reduction being 3112,- 019.31. The state tax for this year reaches 1318.459.22 and the county tax la 1342,958.09. School Municipal Taxes Axe Lowered Special school taxes show an Increase of 115.597.3 8 over last ear and special -cities taxes In creased $23,059.61. The high school tuition fund and county school and library levy also in creased. Tbe county school and Library tax totals $171,478.04; the special cities tax la $455, 340.32; the special schools levy is $447,878.19; and the high school tuition tax Is $121,948. 78. The total . county road tax is $13 (.005.8 8. Veterans' exemp tions dropped off about $10,000. VETE1IS, HERE'S TO BET WASHINGTON, Feb. 27 (AP) Here's what a veteran has to do to borow half the face value of his adjusted compensation certifi cate: v If he has obtained a loam he may present In person br maU to one of the 54 regional offices the record of it and the application for more. Those who' have not received loans must mail to the office or present a certified note to that ef fect along with discharge papers and the certificate. Notes can be obtained from the regional offices and veterans organisations. The regional office for Oregon Is at Portland. Gas Plant For Bend Finished PORTLAND, Ore., Feb. 27. (AP) A. E. Strong, operations manager of the Natural Gas cor poration of Oregon, said today the corporation had completed In stallation of Its plant and distri bution system at Bend, Ore., sad would begin supplying butane gas to that city March 5. Did Yon Know - That. John Slegnituid taught school at Fox Prairie one term? That at one time there was a lot of objection to employing "lady" clerks at the. legl&Latare? . That Rev. T. L. Elliott (father of Mrs. Her. F. A. Wen, and still living in Portland) lectured in Salens in 1886 on "Florence, Dan te and; Bllchael AngrloT Eighty yean, nearly, of state history and of person al biographical facta are crowded In the file of The Statesman These will . be gleaned for interesting stor ies for our Eightieth Anni versary number, March 28, 1031. Watch for It. T LOAN CANNERY FIRM D Ml Jfl IS ORGANIZED FOR W. SALEM BE TOLI Clear and Hiilman Heads Of Company Formed: To Pack Fruit Expect 60,000 Case Output This Year; Plant Will Be Opened Early A new fruit canning firm has been organized and it has leased the plant of the West Salem can nery where It will operate. The firm is tbe Cleary and Hiilman Packing company, the organizers being E. J. Cleary and Grover Hiilman. Mr; Cleary has been secretary-treasurer of Paulus Bros., fruit packers. Hiilman was form erly one of the owners of Cherry City Bakery and . the Capitol Dairies. The new company plans a pack of some 60,000 cases this season. Sales connections have been es tablished, and Ronald Jory is now in the field signing up contracts for fruit. The pack will include all varieties of fruits and berries and will be marketed under tbe "Spot" brand which was used by the former operators of the can nery, the ."Pacific Fruit Canning and Packing company. Cold park will also be Employed tor berries. , The West Salem cannery is a modern plant well equipped, with capacity for 150,000 cases. Reid, tTurn to page 2, coL 4) STROKE OF PEN TO The moment Governor Meier spreads some administrative ink In his characteristic handwriting on House Bill 77 which now awaits - his signature, the public service commission will " be a thing of history. There is a prob ability that this signing will be done today by the governor al though he may hold up the ' job nntil the new man for the one man post Is determined upon. 1 Last night George Joseph Jr., nrf T. A T.fHonvlst rfnl1 'proof read the bill which has passed the legislature. As soon as the? approve it the bill can be come law with Meier's approval since It contains the governor's signature. There is much speculation on the man whom the governor will name tor the new: job which "will be the pivot post injxls utility regulation program. Henry Han sen has been busy all week look ing over candidates but the selec-. tlon of one is still a matter held within the close confidence of the governor and, his immediate ad visors. The name of U A. jjLllje qvist has been used often in con nection Witt the post. . Llljeqvlst has an extensive law practice and understood, to be hesitant to relinquish it for the uncertainties of political appoint ment 'and especially an appoint ment so fraught with responsi- billty Meier as the pivot job of the administration. APPLICATIONS EARLY . SPOKANE, Feb- 27 (AP) Fifteen minutes after Spokane was notified that the senate had, overridden President Hoover's ve to of the veterans loan relief bill, an application for a loan was on file. About 100 applications were received today. ERASE ID Horrors! Spring Opening Set tor Friday the 13tk . Trust those Ad men to get tbe public all excited!. Now they've gone and set the date for the an nual spring opening square on Friday, the 18 th of March, v The young lover" might i consid er that day and date a real han dicap.! Not so- these Ad men. They Just. won't let it be unlucky, for already they, are-getting ideas and making plans and prepara tions that ought to send all the past spring openings in the -corner to hide their eyes with hu miliation. An automobile show, a treas ure hunt, public dance, stunts all these will be Included In the tain event which annually brings out thousands.- And of course, there: will be the festive windows too. !- . :.J.. -, Tentative plans call for asking the city to rope off State street Meeting of Stockholders is Called' for March 12 Here At Chamber oft Commerce Rooms, Announced ; .Contemplates new Company With Funds Sufficient to Develop Plant as Weav i'ng Factory, Stated ;:, Reorganization of the Oregon, Linen mills is planned by a group headed by John Veatch. Portland attorney, representing Gov'j Meier and will be submit ted to ' the stockholders of Y company at a meeting- in the chamber of commerce rooms on -.March 12. The reorganization must be effected. It is stated, to avoid default of interest on the mortgage bonds the first of April and consequent foreclosure of the Hen on the property. The reorganization contem plates the formation of a new company. Issuing ! stock in ex change for outstanding stock of the present "corporation, and the putting in ot new money. Into the enterprise which will tahe. care of current debts, provide new- automatic looms, and start the mills as a linen-wearing fac- tory vpblch was the original do-' sign. ' 'j- .j.'l' j .- j'.,;' , -Letter Is Sent 1 To Stockholders Letters ; were mailed to stock holders by a committee cow posed of the following,' and pro senting the necessity for prompt action In order to reorganise the property: Paul B. Wallace, J. W. Mayo, W. I. Staley, Dr. W. C. Keene, U. ' S. - Page, Dr. H. J, Clement, Dr. M. C Findley, T. A Roberts, F D. Thielsen. The let ter which was mailed yesterday is as: follows. ' "Fellow Stockholders: "The undersigned stockholders of the Oregon Linen Mills, Inc., met at the Marion hotel yester day at the request of the Stock holders committee, ! (Said com mute having been elected at the . regular' meeting of the stock holders Sept. 15, 1930). TliO purpose of the meeting was to confer with Mr. John Veatch of Portland, attorney for Meier Frank .company. Mr. Veatch has been working on plans tot the reorganization of ' the mill for some time and at this meeting presented for consideration the best, proposition he has rbeen able to obtain. Thisnplan will mean the reorganization and immedi ate operation of the mill. .'"We find the present financial condition of the Company to be briefly as follows: Accounts and Notes Payable. Interest, Etc. .$53, 013. 63 First Mortgage Bonds in Treasury w, htch may be sold to retire these obligations .... 61,700.00 Bonded Indebtedness at tbe present time consists of First Mort- , gage Bonds issued and c outstanding 88.300.00 l"The ; bond Interest is due April liwitb no .quick assets to meet obligations, which probably means Immediate foreclosure and total loss to we stockholders. "A proposed plan was present ed by Mr.- Veatch, through which a new corporation will be organ ized by . responsible parties who (Turn to page 2, col. 4) between. High and !, Commercial and-Liberty street between State and Court, so these -three main blocks may be used for the auto show and signal for the grand opening. Windows will be unveil ed" ar7: 30 o'clock, i The dance, too, will be made s big feature ot the opening. Ralph, H. Kletzlng, general chairman, has called first meet ing of his committee for Tuesday noon. Committee members are; Vera Suko and Carl A. Ramsey er; C. A. Sprague and Bill Wat kins, , automobile show;, 7 C; M. Lee and Stanley Keith, ' treasure hunt; Dr. Henry Morris and Ken neth " Morris, window displays and prizes; E. A. Brown, pub licity and advertising; . A. B, Smith, platform: Palmer C. Mac donald and Harry C. McWhorter, special features and entertain v .34 1 '"