Image provided by: University of Oregon Libraries; Eugene, OR
About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 13, 1931)
. EIGHTY YEAKS
' Place orders bow for The
ttemaaa SOth AmalTer
sary . editloa, a : rerlew . of
Salem history, i -
Use order blakk pace 3.
Girl Victim Qf
EIGHTIETH YEAR Salem, Oregon, Friday Blorninjr, JIarch 13, 1931 . yyy.ty,:-, ri' .lyz.,yy1...: y .:. No. 231
. ' - v i.- i .., - -, i ; ; l . t. i : .....
VVindows With new fashion
1 Displays Unveiled at '
7:30 p. m. Sharp -
Auto Show and ' Excellent
Program Added Features
Along 'With Dance ; :
, Tonight wUI tell the storr f
what Ilea behind the Yelled win
dows. Exactly at 7 : 3 0 o'clock the
whistles will sound and. the cur
tains will , be withdrawn and be
hold, the beauties of sprint open
ing will be there, to be Tiewed br
hundreds of people. ?
;SaIem Ad club's "spring open
la g" has become, a part ot the
tradlUon ot the city and each
year the displays and program be
' comes more elaborate and foil ot
interest to the pnbllc. This year
one of the novelty displays will
be the automobile style show.
Nearly a hundred new models will
"be on exhibit - v'v ; ' ,' -C i .
In addition to this there will be
the time honored feature, the
"treasure hunt" Cards, will be
in most" of -the store j windows;
Similar .cards will be i scattered
about in the hands of the popu
lace and those holding, matching
cards with those la the windows
will win a part of the $500 worth
of merchandise whltfi will be giv
en away 'tonight. , '
Program to be -W'orth
A program of music and .short
talks with Newell Williams, as
master of ceremonies will be
broadcast from the chamber of
commerce where Radio Headquar
ters hare placed radio equipment.
Cole McElroy and his 10 Ore
gonlans will .conclude the evening
with dancing at Crystal: Garden.
The following dealers and mer
chants will take part In the grand
'spring opening" for Salem:
Willys Motors. Inc. Willys
Knight de luxe sedan, standard
and other deluxe models. V f
Salem AutomobileCo. Austin
roadster and panel delivery; Hup
mobile sedan and coupe; Durant
standard sedan, de luxe sedan and
de uxe coupe. " 1 '., j
' State Motors, Ine. Hudson,
club sedan, standard sedan. Essex
sedan. Studebaker eoupe'and se
dan, Studebaker traffle officer
model..'. - y-:
- James H. Maden, IncJ Nash
8-80 sedan; -S0 sedan, C-60 royal
sedan- International truck. 3, 2
and 1 ton long wheel base with
dump bodies. ; ; li- it
-. Douglas McKay Chevrolet Co.
New -: convertible cabrtolet,
standard: coupe.' special .sedan,
standard sedan and long ; wheel-
. , Willamette . if otors, ! Inc4 --
Chrysler sedan, and roadster and
Odsmoblle sedan and coupe. -
- Otto J. Wilson Buick : SO
seven-passenger.-sedan; Buick 67
sedan-with, ll Inch, wheelbase;
it sport coupe and 59 sedan with
114 inch wheelbase. j'
Loder 'Bros. Graham Bros,
town sedan, standard sedan, spe
cial sedan;' 8-20 sedan and 8-20
coiipe. ; r ' : " ' -4 '
; Valley. Motor. Co. Ford sedan.
Wood-Wheat on Pont lac con
vertible coupe, standard .coupe,
' sport, coupe, -custom, sedan and
Oakand sport coupe and custom
Packard Service St Sales
- Reo Sales L. Service Reo
speed wagon. i
Service stations displaying ser
vice cars will be Smith i- Wat
kins, Doolittle super service. Day
& Niles, Marion garage and Good
rich Sllvertown. ! .
The following merchants- are
cooperating ; In the . spring open
(Turn to page 8, col.. 3) ;
l PLUNGES IV RIVKB '
, ' PORTLAND, Gro March 12.
(AP) A closed automobile,
carrying an undetermined num
ber of persons.-plunged off a fer
ry slip Into the WWaraette river
here- tonight. . . , - 1 ; , . .
Police said no one ' came ; to
the - surface- and. expressed ' the
opinion that all the passengers
were . drowned. . . .!... -
i Stephen Spencer, and W. A.
Brittin, Portland, told police
they were standing on I the slip
waiting for the ferry when the
sedan hurtled down the hill,
sped onto the slip and plunged
.Into the river. The machine
landed about- 80 feet from shore,
they said. The water ; at that
point is about 35 feet deep. ..
CLUB ORG AMZED ' y, ;
. .-PORTLAND. Ore i Marchv
12w (AP) Formal orgaaixa
tlon of a Roosevelt-f or-Presl '
dent club' was effected, here
today. : ' "j
The purpoee ef the clab Is
to farther, the nomlnatloa aad
election of Governor Rooeevelt
of New York to' the presidency
of the United . States. ;
"l ONE IS INVALID
T EUGENE, Ore., March 1.:
(AP) Two sisters;, one. an. Invalid,-
burned to death In a tire
that destroyed their farm home
near here today. . . j. ." . .
Four Thousand Arrests and Seizure jpf 1 800
y - Stills Reported ; "Must ; put Crimp . in'f
. t-. Things, Woodcpck Declares , C .
' WASHINGTON, - March 12. (AP) - Prohibition Di
rector Woodcock served notice today upon commercial dry
law violators that his 500 new agents would be thrown
against them in a carefully planned campaign,' more stren
uous than- any in recent prohibition history. I ; v !
. At the same time he disclosed figures for enforcement
WORK STARTED DH
Construction Chief Sets up
Headquarters at : Las
Ui.S VEGAS. Nevada, March
11 AP A .hard rock engin
eer today quietly started; one of
the biggest engineering jobs of
modern history, the taming of the
Frank T. -Crowe, construction
superintendent whose- outfit, the
Six Companies, Inc., of San Fran
cisco, has been awarded the $48,
890,995 contract to 'Boulder dam
and powerhouses, started the day
by opening an office here. Then
he went out to .Black Canyon,
where 'during 'the next six and a
half years his job will be to build
a damj 727 feet high, larger than
any eter before constructed.,
"We, must have a place to eat
and sleep before we can put men
to work- there," be said, and her
spread; out plans for the construc
tion camp. "This starts at once,
for while 80 per cent of our men,
as set i forth in the specifications,
will live in r the government's
Boulder City, we must have sev
eral small camps.'
Railroad Most 1
Be Constructed c - '
That's the beginning, and the
first real job is the construction
of a railroad down the canyon
connecting the. government rail
road with the dam site. This rail
road will handle " all the equip
ment going into the canyon, and
all the waste materials coming
"It will be -carved out of '-the
walls ot the canyon and will be
part tunnel almost ail of the way.
It will be main line construction
throughout, probably double
'tracked, , because 'while, we -.are
pouring concrete we must carry
more traffic than the main - line
of the. Southern Pacific leading
out of San Francisco." -
ACTS OF OFFICERS
"Law Violations by the Law
Enforcement Officer." was' the
topic discussed by Dr. Roy Lock-fl
enour, , professor of law at Wil
lamette university, -at Thursday's
session, of the annual ' police
school now being held .under the
direction of. the law department
of Willamette , university.;.
Other, speakers Included Luke
B. Majf ? of ' Seattle, consult
ing Mminologlst; Elizabeth Los
sing, head of the crime preven
tion bureau "of the Berkeley.
Calif., police : department; Earl
A. Nott,- district - attorney ' of
Tamhiil county, - and Captain
Frank. Ervin of the Portland po
lice department. r
- The school 'Will continue until
late Saturday. j
BOULDER DAM JOB
i . ' .r---o-:-f-'
All in - Auto Drowned f -Rooserdt
Is Backed .
Two' Burned Death
7 Victim of Anto Dies
Anna Baker, 42, the invalid,
and her sister, Violet, 87, were
in a room adjoining the kitchen;
When the fire was discovered by
their father, Andrew Baker,
their room was .already aflame
and It was impossible to attempt,
rescue. . Baker and his wife .es
caped with, slight burns. ...
The : charred remains of the
two sisters were found in the
ruins ot the house. The fire was
said to have started from a de-
fective ! flue. ", ... ,.. .'i- -
IJXGERS 4 DATS
KLA5L1TH FALLS,' OrV
March 12. (AP) Fred Arm
'stroaaV -48, av stoae maaom,
died itere tonight from Injur- '
ice received y when be was i
struck by aa aatomobile San
" day -. Bixbt. .... -) , '
Arnurtroeg', allcrlly txtox
. Icated, stumbled against ma-
i chine driven by Marion Rntb
erford. Rattherford wan not -
held. ' - . ' " 1
,r;- - - - ; r
WILL CLOSE STORE !
- PORTLAND, Ore., 'March 11.
(AP) The Portland, store of
Sherman, Clay and Co.. music
house, will be closed In the near
future, : officials of the corpora
tion announced - today. f -P.
T. Clay, president, and P.
R. Sherman. 'Vice-president.' are
here from San ITaacisce . attend
ing to details. ; '7 : '. rj-f k
OtfurlBf the past month, showing
more tnan 4,009 arrests, and the
seizure of 1,800 stills, 1.590,000
gallons of illicit liquor and 24t
000 gallons of beer. I v
'Surely this must put a denU
prohibition ; director i said: i fin
one state alone. New York, we
seised ' stills with an aggregate
daily capacity of 90,000 gal
Four points stood out In the
formation ot the new enforce
- One was the - Issuance ef or
ders to every prohibition admin
istrator and hU deputies to sub
mit to Washington plans for
dovetailed operations involving
the 500 agents. - y
.Another -was the announce
ment of the Intended purchase of
150,000 worth of automobiles.
A third was notification to all
administrators to select their
quotas of new agents from , the
list of 3,000 eligibles having
them ready for duty by July 1.
Plans also were laid for sending
them to school,
Lastly, Wood cock, made known
the creation of an "intelligence
division to study 'enemy' opera
tions." "We -want-to have a definite
plan of action- In every section
before July 1." .he said. "There
is . no use having increased facil
ities unless there is a campaign
to employ them." ?
Willamette Above Portland
Gets $78,000; Other
WASHINGTON. D. . C .. Mareh
12 (AP) The far west fared
well In appropriations for rivers
and harbors allotted today by the
war department out of the $60,
000,000 appropriated . by conr
gress for waterways for the cur
rent fiscal year.
California led the western list
with 11,524,700. more than half
of which, or $883,100, Is to be
expended in the general vicinity
of San Francisco bay. .
Oregon-- was second with 1
368,600 of which a -small portion
may properly be credited to
Washington as it applies ' to the
Columbia ' rlrer. Washington's
share was $405,800 of' which
14.000 is for the Snake, river in
Washington and. Idaho.
Among the allotments were:
Coquiile river. Ore., $8000; -.
Coos Bay, Ore., $111,500. r
rCoos river. Ore., $2000.
Umpqua river, Ore.,-$110,000.
, Si us law river. Ore., $1000.
: Tafulna rlrer, Ore $9500.
4 Yaquina Bay and harbor, Ore.,
' Skipanon Channel, Ore., '$85,
Tillamook Bay and harbor.
Columbia and lower Willam
e 1 1 e ; rivers below Vancouver,
Wash., and Portland Ore; $720,-000...-....1,
;.. ..n--".' : '
i Willamette river above ? Port
land and Yam hill - river. Ore.,
Columbia river and tributaries
above Celllo Falls to the month
of Snake river. Ore., and Wash.r
For La. Grande
. The; governor yesterday signed
house bill 409, by the ways and
means" committee, - appropriating
$50,000 ilor ; the construction of
a teachers : training school in
connection with the Eastern Ore
gon state normal, at ' La Grande.
This appropriation was sought by
the state board of higher educa
tion. - ;r- : , . y
- Governor : Meier V also affixed
his signature to house bill - 431.
providing for minor - changes in
the apportionment ot state repre
sentatives, la compliance with the
federal census of- 1930.
i KANSAS CITT, March 12.
(AP) ' Mrs. Flora Dangherty
Mosby, 42, was released on bond
late today pending a coroner's
Inquest March 20 injo- the death
of her hasband Harry D. -Mosby,
47, who: was. shot to death this
morning by what the widow said
was the accidental discharge of
an automatic pistol.
Norris Declares "Another
V RoosevelfV : is iNeed;
Tongues' Wagging ; ; i
Shorter Hours for; Worker
To Solve Employment
Crisis Suggested ;
- , ' - "" ""
WASHINGTON, ; March 12.
(AP) The conference, of polit
ical independents focused its at
tentlon-on the 1932 presidential
race in Its closing hours today
with "a demand by . Senator Nor
ris for the election of "progres
.-Rejecting President Hoover as
a . "power trust" man, the Ne
braska republican , also gave no
tice to the democrats that a can?
didate chosen on the . platform
offered by Chairman Raskob
would not do.
Political tongues were set to
wagging by the Nebraskan's dec
laration that "we need another
Roosevelt in the White House.
but he mentioned no specific
candidate and conceded inability
of a third party .to be successful
a year hence.
Silent on Whether j .
Governor Meant 1
When asked later If hie ret-,
erence to "another Rooserelt"
meant Governor Roosevelt, of
New York, prominently . men
tioned democratic candidate.
Senator Noris smiled and said:
"I never thought about that." -
"I guess they will all think
that," he added. : .
Norris has expressed friendli
ness to Roosevelt previously but
today he "declined to commit
himself en candidates. '
The Norris speech, 1 broadcast
over the Columbia radio system,
opened the final discussion of
the conference on public util
ities, which Senator Norris has
projected as the dominant Issue
of the next campaign.
Earlier In the day, under the
leadership of Senator LaFol
lette, republican, Wisconsin, the
conference received proposals for
a five day week, establishment
of an economic council, ' and
greater expansion of federal con
struction aa aids for unemploy
After two Days
La Follette also levelled criti
cism at the Hoover administra
tion and asserted the Industrial,
financial and political leadership
ot the nation has broken down.
The two days conference ad
journed tonight . with commit
tees appointed to carry on the
work In . a permanent organisa
tion. Immediate attention will
be .directed to the formulation ef
a - legislative program for the
next congress In which the inde
pendents hold the balance ot
Pnbllc utilities, tariff, unem
ployment, . agriculture and the
return to representative govern
ment were the topics assigned to
committees.: Senator La Follette
assured that the J independents
were prepared to exercise ' their
balance of power, - j '
T'n M TT XTTn
BOSTON, March 12l (AP)
Reuben Curtis of Chatham Four
Corners, Columbia county, N. T.,
entered a Back Bay hotel today,
wrote his name, on "the register,
and. said te the clerk t "I. guess
yon better take care of Bess oat
there.": - ; - - ; .
The clerk asked who and where
was Bess. The new guest pointed
out the window. The clerk look
ed, swallowed hard and scratched
his head, bewildered. - -
Across the street ' stood . Bess,
harnessed to an old-time buggy.
The clerk argued and Curtis In
sisted: "It's the law. --
Reuben finally demanded to see
the "constable." A ! bellboy es
corted him - to police headquar
ters. Captain James Watklns con
curred In Reuben's argument af
ter looking np an old law requir
ing "inholders" to supply .stable
room tor horses and cattle. .
The visitor and the law moved
ba.ck to the hotel and a place was
found la a nearby garage for Bess,
who had been driven here while
Curtis" cattle had been shipped by
train. . . ; .
The hotel clerk and manager
were glad that Reuben didn't
drive his 43 head of cattle to the
hotel door. '
ROLL OF HONOR
. : The Statefimaa in planning for" the celebration of its SOtn.
annJvenary desires to prepare ReU of. Honor. We want the
names of ail those residents of Marlon and Polk counties whos
i: Were born in Oregon territory on or. before March 20,
, . 2. Any coaplcs who have been married 80 years or over.
B. The mamee of all who have been continuous sewrfbers -"te
The Statesman for fifty years or longer. J ;
Please send in your name and address and nive-appropriate'
dates. - - : . ". . v, -
The Statesman enters' the ranks of "octogenarians" and de
sires to celebrate the event properly, r Z
'The Oregoa Statesnaan,
' x- Salem. Oreron. J -
Virginia Brooke, whose mutilated
body was t ownd om Camp Kean
ney Mesa, south of San Diego,
this week after she nadbeen
sought since February 11. 8 be
was ten years old.
WILL EM) 0. S.
John R. Alpine Appointed to
Assist Cloak; More of ;
WASHINGTON, March 12 -r-(AP)
A program looking toward
the extension ot federal employ
ment services wai initiated today
by President Hoover.
At the same time Secretary
Doak announced there had been a
general Increase In the volume
of industrial erapoymtnt during
February-. aa compared , with the
previous month. , ,
. President , Hoover announced
the appointment of John R. Al
pine of New York, a tormer vice
president Of the American Federa
tion of labor, as special assistant
to Doak to handle the '. employ
The chief executive . also said
the service would be extended to
include' the following workers:
mining, building, metal . . trades,
transportation, needle .' trades,
textiles, office and mercantile sea
men and longshoremen. ' y
Extensive Stedy "
WiUbeLuadwd ; ' " - '; ' .
"In addition to the extension
of the federal employment service
In these directions which are in
terstate in character and which
will be set up in cooperation with
the existing public agencies, it is
proposed that an extensive stud
of the whole Question of free pub
lic employment agencies shall be
made both - In - the United States
and abroad,' President Hoover
said.-- ' '- - --'.,' '
- The president has available for
the project $500,000 appropriated
by the recent congress; In addi
tion to the usual $380,000 per
year, t 'y: -'yy ;-.:!;
PERRY. Iowa, - March 12
AP) The Identity ot a fire-seared
body buried four weeks ago
as ' that ot John Smith, farmer-
labor political leader and former
candidate for governor-was ques
tioned by Coroner L. H. Deford
today,, after he .exhumed. It by
court order, growing from a re
quest ot Insurance companies." '
i Burned beyond recognition, the
body was taken from the flaming
wreckage of Smith's automobile
and burled. . ';.-
House-Cleaning to be, Next
; Task, j General Relief
ycy Around Capitol
Large Amounts cut out of
i Budget by Slashings:'
i- Of Executives v- -
- Governor Meier put away his
veto ax for another - two years
late yesterday: afternoon,, washed
his hands la the newly authorised
$3500 capital outlay addition to
the governor's . executive t cham
bers, . and, . with the legislative
mop-up at an -end, prepared; for
some other executive duties. gen
erally known as . "house-cleaning."
. . .
.. Twentyflve bills, either entire
ly decapitated or els struck 'se
vere blows in the solar plexus had
been hauled to the secretary, ot
state's morgue during the week
following the midnight adjourn
ment of i the legislature last
Thursday. '. . '- "
Only two bills were sent to the
secretary, of state without being
signed; to become laws at the ex
piration of the 90 days "period.
One of these bills, by Senator
Woodward, provided that munici
pal corporations shall be exempt
from tiling an application for a
water appropriation with the fed
eral power commission. The oth
er bill, by the livestock commit
tee, amended the so-called "gas
oline cowboy law enacted at the
1929 legislative session. - ' -Largest
That for Schools
The largest financial item ve
toed by -CSovernor Meier -; was
$500,000 of the $1,181,173 ap
propriation sought by the state
board of , higher education, i for
the support of Oregon's five In
stitutions of higher learning. The
governor pointed out In his veto
message that this reduction
would not injure any of the in
stitutions for the reason that
ther would be available from
other sources during the Wen
nium more than $11,000,000.
This total is made up of mlllage
taxes exceeding $4,000,000, fed
eral, funds, student fees,' contin
uing appropriations, gifts and
miscellaneous receipts. . j '
Another, substantial appropri
ation vetoed by the governor was
that of $40,000 for the construc
tion of e state armory , at La
Grande. This appropriation was
contingent upon the City of La
Grande authorizing a similar ap
propriation for construction - pur
poses. The governor, also j wiped
out an appropriation of $30,000
for a mining and geological sur
Tey. ..... .y . ir. :: : :, L 4.
Smelt License -
Bill Frowned On'.-. -j
- The governor also disapproved
house bill 254, by Representative
Tompkins and others, providing
(Turn to page 8, col. 1)
Charities Will t
; Employment- for a .number bt
men is In sight, with announce
ment yesterday that the Associ
ated Charities has purchased a
tract of timber near Rickreall
with purpose of "sending unem
ployed men with families to cut
Men who will do this work In
return for their own supply of
wood, for groceries and a small
amount of cash should get in
touch with the charities secrejtary
at 211. Cdurt, the headquarters.
' Men' wbo ' can should provide
their own tools. Some arrange
ment will be worked out relative
Solons on Job
OLYMPIA, Wash.; March 12.
(AP)-r-With house and senate
conference committees - reportea
still ' far ' apart en several I viUt
measures, clocks were stopped at
11:67 p. m., throughout the cap
ltol building tonight and the
twenty -second ; session?, of- the
Washington legislature passed
Into Its Cist day at midnight.
?' OLYMPIA, Wash.. Majrch 12
(AP) Governor Hartley, a tew
minutes before midnight tonight,
announced he had vetoed the
Showalter - school bill which
would have drastically " revised
the financial and administrative
structures ot the state's public
school system. . , "
LONDON, March 12 (AP)
Wedgwood Benn, secretary tor
India; announced in the house of
commons today that the, new In
dian conference, to which repre
sentatives of .the all-Indian con
gress will be invited, 'would meet
la London, probably early next
autumn. - " - .'-...- ;
Coed Debaters '
1 - Willamette university women
debaters out-argued a .University
bt Idaho team last night to win
approval of the affirmative ' aide
of the question. Resolved '-That
Gandhi has been a benefit to In
dia. . Doris Corbln and Kathleen
Skinner upheld Willamette's honor.;-"
-; . ' i'c;:
V a" non-decision debate i-with
Raymond Laf ky as .critic - was
staged between the local and Uni
versity of Oregon freshmen on the
question. Resolved, That the na
tions should adopt a poUry of free
trade. Kenneth Oliver and Wil
lis Schuler represented Willam
ette and spoke tor the affirmative.
DROP in GUI
Signs say 184 Cents Here
' and end not yet; war
In South Keeps on
And gas grows cheaper. .No
railroad publicity agent has
come along with a story that the
gas men are out after the rail
roads for cutting weekend fares
to the bone, so that isn't, the
reason gas wss selling here1' yes
terday for 18 cents, a cent un
The - drop - started in a few
stations early in the day, and by
(Turn to page 8 col. )
nvo WE JURORS
HILLSBORO, Ore.v March 18
(AP) Two more Jurors In the
adjourned Bowles-Loucks murder
trial were stricken with Influenza
tonight and Circuit Judge George
Bagley, presiding, said he held
little hope the trial could be, re
sumed next Monday. - . . : ', .
. Nelson C. Bowles, Portland "mil
lionaire, and Inna G. Loucka, his
alleged mistress, are on trial for
the knife murder of Bowles' wife,
Leone. - ' - -
- Illness of three - Juror ' Wed
nesday caused Judge Bagley to
adjourn the trial until Monday
Today Dr; J. O. Roob, county phy
sician, said the three men' were
recovering : and would be ' ready
for Jury duty Monday. -
Judge Bagjey said tonight that
while be doubted all the Jurors
would be ready tor work Monday
he did not believe their illness
was serious enough to warrant
discharging them and Impaneling
a new. Jury. .
Meanest Human :
Uses 'Lead Slug
To Buy Apples
i . , -
LOS. ANGELES. Mareh' 12
(AP) The low person" who
stoops to. stealing pennies front
blind; men's cups and takes' can
dy from children must move over
and make room for- this city's
meanest thief. '
He bought some 'apples from
Mrs. Mary Norton who sells ap
ples on- a" downtown corner to
support ' an ailing husband and
two children, and he paid, 'for
them with a lead dollar. M '
. . BOXNT5XBERO WEDS
NEW YORIC March 12.
(AP)-i Gus Sonnenberg, former
ly generally recognized as. heavy
weight wrestling champion,' was
married' today to - Marie D. El
liot of Boston at- the little
church around the corner.'
Whale Now Rival of Hog
F or Bu iter '. Substitute
CHICAGO, March 12 (AP)
The whale Is the latest competi
tor of the American hog. ir ,
' Europeans are using hydrogen
ated oil of the mammoth ... sea
mammal In place of hog fat tor
making butter' substitutes, i TJp to
date the hog Is more than hold
ing his own because of the pres
ent low . prices for lard. . j . - V
Royal W. Bell, a leading mem
ber of the Chicago board ..of
trade, called .attention today to
the fact" that'the 'American -hog.
as represented by lard shipped
from this country Is retailing for
14 cents a pound In Great Bri
tain, one cent to four cents less
than margarines that are chiefly
whale-oil.' Mr. Bell said terrific
slaughter of whales has resulted
In Immense Increase t whale oil
production. . . .1
With Proviso However
That 580,000 Cash .
Present Company Will
; Retire 553,000 of
. Unfunded Deht
r Stockholders representing a
majority Interest In the common
and preferred stock ot the Oregon
Linen Mill company here, voted
yesterday afternoon to release
both their' stock and the mill's
physical assets to a new corpora-!
Hon headed by F. J. Gilbralth ot
Salem and John B. Meek of Port
land, provided that the new com- .
pany, to be known as the Salem
Linen mills, .sells $80,000 worth
of its stock for cash and thus pro
vides adequate working capital.
' Stockholders of the present
company agreed by their vote to
assume the responsibility ot re
tiring $53,000 of outstanding and
unfunded debt 'of the Oregon Lin
en Mill company, through a treas
ury residue of bonds, authorized
but not outstanding.
Committee' Given "
Power to Act j
Under the resolution adopted
at the meeting, negotiations be
tween ' the present company and
the one to be formed can be car
ried on and transactions validated
by a stockholders' committee of
three named by Thomas B. .Kay,
president of the mill. James G.
Heltzel. William M. Hamilton and
Joe ; Baumgartner comprise this
Under the plan agreed to,- in-,
dividual stockholders represent
ing, at least a majority of the,
present company will deposit their'
common and preferred stock In es
crow with a local bank. When
sufficient bonds to pay the $53,-
000 of current indebtedness of the
Oregon Linen, Mill company have
been sold and when the G libra! th
Meek group has placed $80,000 in
cash in the bank to purchase its
share of the Salem Linen Mills
company, the deal will be con
sumated. The proposal of the new com
pany, as made through Meek, is
to assume the ' physical and net
current assets of the Oregon Lin
en"' Mill .company,, free from any
debt except the bond Issue, nearly
$90,000. of which Is outstanding
and $53,000 of the remainder of
which will be outstanding when
the present company pays its cur
Old Stock to be
Traded for New
The corporate structure of the
Salem Linen Mills company as'
proposed, calls for 6000 shares
of no-par common stock. Of this
$32 will be traded to present pre
ferred stockholders In the Oregon
Linen Mill company on the basis
of . one share of no-par common'
stock for tour shares of prefered
stock. Two thousand more shares
are to be sold for ,$40 cash each
while 1000 shares are to go to
F. Gilbralth, promoter of Jhe
reorganization and manager - of
the new mill. An additional thou
sand shares will be left In the
treasury, subject to payment to
the. manager when -certain oper
ating profits have been-taiade,
while . the remaining thousand ,
shares of no-par common stock
are to remain in the new com
pany's treasury for sale for addi
tional capital, if needed. j
1 ' John C. Veatch, representing;
certain Portland stockholders. In
cluding Governor Julius L. Meier,
declared that after extensive work
on reorganisation, he regarded
the i plan , proposed yesterday as
the only ' way out ot the linen
mill's present dilemma. Interest
is due on outstanding bonds April
1 and.no money is. available for
payment. Veatch said' that con
ferences with Portland, San Fran-1
Cisco and eastern financial in
terests had failed to Interest them
in any proposition other than the
taking over of. the plant at a re
ceivership. . r ,
"V eatch said- his' associates' and
i (Turn to page 8, coL 8)
The Antarctic has provided a
greatiy enlarged new field f or-the
whaling industry, the catch num
bering tar up Into the thousands.
One of the biggest whaling fleets
ever . assembled la the .Antarctic
now is reported ip be engaged la
the busiest season the Industry
has 'had for years. Just north of
the huge ice barrier, and scatter
ed over hundreds ot miles of
ocean, are 32S ahlps carrying 11,
000 men, rapidly filling the ships
with the oil of the sea mammals.
Strictly modern methods are
used, such as the electric har
poon for capture and the airplane
in finding herds. 'However, steps
have. been , taken to . save the
whales from extinction, and it is
thought production of whale oil
will soon be considerably re due-'
; ; .-'.