r ' ... . " . . . ........ ,. , : - .
'-., - . - : . : " - . . , ; . . - . . , .., . ; . j v ' " r ' : - '. - n. - . . - ; - ' '
iii.,f v j , - - - -t . 1 11 N t itt pi.-)1? - .. . ,- i ' 5 . J . ' . k - i ! . - , - - . . -( -
V : service h , --'iJy. .-:-( f-lpK ACS?rCJ V b rs! - :f toe weather . 7-
. . be deUTered at one. . - ; . ' . . - TS - 1 JJ . 64,M1. SS, rirer 1.0 feet,., .-.
f I '- - . ' . . - - - i -- - - - M .. . . Jl -
; m"'"'W'YKAH,-; ' " ' ' . SaUnu 0rcn,miay Morning; NoYdti . - ' Nom-
3iiHiiigiii
"JifU nLIILflU I ULuUli . . . , r . . - - l r
1
i One of Victims; is "Officer;
; . Fourv;M6reKeitb:j
Succumty Word
No. Inkling of Cairse to; be
Given j out , Priori tb7l
: p ;r.Nal,:noirif - :
SAN PEDRO, C!.i. Kot. 8 -t.
(AP) Explosion 'of five Inch
anti-aircraft ua on the U. S. S.
Colorado tansed the !eatl of one
officer -and ttare enlisted men,
the possible fatal Injury of two of
' fleers and two enlisted men and
serious lnjnry "to flte other men,
seamen first class," in firing prac
tice this afternoon off the Pacific
coast 45 miles northwest of here.
Navy headquarter at Washing
ton had been notified long before
the accident became known here
' and little official information, was
: arailable at the barber. Admiral
' Richard H. Leigh said no stale
men t would be made regarding
- the cause of the explosion until
after an official inquiry scheduled
for tomorrow morning aboard the
Colorado. The teasel came Into
- the harbor tonight at. 8 :1S p.m.
and the rictims of the blast were
taken off.
The dead: -
Lieut. Ralph F, Bradford, Jr.,
Ponttac, 111. - - i . -
Lewis A. Clark.. seaman, second
class, Los Gatos. Calif. -r-,.;
Maurice O. Hawkins, ; seaman,
first class, Hastings, Mich.
J. J. Schnnr, seaman, . first
class, St. Loais. .
The possibly fatally Injured: .
Lieut. Winston I. Quattlebaum,
of Kentucky, who entered the sef
Tlce from Texas. - i
Ensign John B. - Huntley, ap
pointed to Annapolis from Ohio.
R. O. Duff, seaman, first class.
Q. E. Swift, seaman, first class.
Others Injured, all seamen,
first class H. J. HInton, J. R.
Kowalskl. C. V. Stoter, R. E.
Lut, ;WVJ. Dural. ,
All of the dead and -Injured
werei members of the -Colorado
crew except Sxhjjjr, who was on
leave from the U. S-ISTOtlaHOTna
and was risiting a friend aboard
the Colorado.
While. the radio officer aboard
the TJ. S. S. Maryland was recelT
i ing messages of the Colorado tra
gedy late this afternoon. Captain
J. J. Plummer. gun captain in
No.. 3 turret of the Maryland, was
. critically injured and was said to
be In a i dying condition. Captain
; Plummer was training a squad of
recruits on gun operations, and
: had descended into the pit .o de
) scribe the workings of the gun.
I The huge gun fell, pinning
f Plummer beneath it. He sustain
I ed a badly crushed chest and sev-
eral broken bones.
SEEK TO RECOVER
t Suit to recover on the bond
against larceny or embettlement
I of Zeno "Schwab, of the .Aurora
i- state bask. was started in circuit
1 court here , yesterday against the
if National Surety company. A. A.
; Schramm as state bank examiner
i and ' liquidator of the insolvent
f bank it the plaintiff,
i Complaint sets forth that the
surety company executed 410.000
, j bond to cover loss which the bank
'A might sustain .through wrongful
: action of Schwab, and -that the
Y last payment covered period from
October 26. 1930. to October 2 ,
j 1931. .-. v'--- - -Jr
Plaintiff made claim upon the
' surety company, showing that the
;! bank suffered losa of $12,000
tj through Schwab's misconduct, but
' the defendant company refused to
recognize the claim, denying the
liability.
The liquidator - seeks $10,000
Judgment and $1000 attorney
fees, : . - r
OIISCB 1!
Pitched Battle
Manchuria Peace Hope
- TOKYO Nov. ' . (Friday. )
(AP;): Government circles an-
" nouneed 'today " that Japanese
troops will i not advance farther
toward Anganchl and Tsttslhar.
nnless forces of the Chinese gen
eral, Man Chan-Shan, continue to
barass Japanese now holding Tah
slng and other points a few miles
north of the NonnJ river bridge.:
: TOKYO. Nov 8 i AP) Hope
of early peace in Manchuria were
blasted today by a battle between
f Japanese and - Chinese troopa for
; possession of a dynamite-wrecked
bridge;' -;rl-i. c?.K
. ; The Ja pa u ese rushed rei hforce
ments to the scene.-where the Ta--onanAnganchr
railway crosses the
Nonnl river, and further fighting
: was In prospect." - - --.- ;f
Si'.Tbe waf office 'here announced
15 Japanese and an unidentified
number of Chinese soldiers ; were
, killed and many wounded, and
aid "positive and effective meas
nres" were decided ' upon by the
Pxibe 18 S500 and PnrrKaAr Mnsf Prnmi'eA KJrr
"9 Elephant Won't; Killed ; Local man
. : Successful Bidder at $200
HARDLY had Harry Plant, "matchmaker and armory cus
; todian, acquired the 10-ton Tusko here yesterday morn
ing ;.when: offers to sell or lease the country's largest ele
phant began to come in. Plant was sole and successful bid
der for the big captive yesterday morning at the state fair
grounds when Sheriff Oscar D. Bower auctioned him. Plant
1 1 ; o bid- $200.
PLflN OF GREATiriB r
TOLD
Wood Cutting, Pruning and
Improvement Work for
City Suggestions
A four-point plan for creating
employment for needy Salem men
last night was "formulated . by
member of the Community Ser
vice committee who met at the
chamber of commerce. Under the
plan it la hoped to give part-time
work to the unemployed, thus
relieving charitable organisations
of a portion of their burden
which is expected to become
heavy this winter.
Urging city Industries to pro
vide work for at least a short
time, each week. ' paying such
wages as they can afford, is the
first point of the plan. The com
mitteemen expressed the opinion
that a number of local . plants,
some of them now not running,
could provide this sort of employ
ment. J
- Arranging for jobs of cutting
wood, clearing land and pruning
orchards la the second point. Sites
tor the woodcutting already are
available an'd landowners have
said they would hire men to clear
their properties if the cost were
not too high. -
Encouraging property., owners
to have odd Jobs done by the
needy men cb week Is the third
point. The committee will .make
Us plea on the proposition that
there is work to be done and that
(Turn to page 2. col. 3)
EMPIRE COMPANY
GIVES IIP PE1IIT
The Empire Holding company
df Portland will voluntarily sur
render -its permit to sell $5,000.
000 worth of stock in the Stateof
Oregon It was learned here late
yesterday. The- corporation was
granted a stock selling permit two
years ago and was to have formed
the holding corporation through
which subsidiary companies sellr
lng rire. lite. Indemnity and auto
mobile ,- Insurance were to have
been chartered.
O. P. Coshow. former Justice of
the state supreme court, is pres
ident of the concern and Sam A.
Kozer, former secretary of state,
has been, affiliated with the com
pany. :
The detleion on the, part of the
company to ask for suspension of
Its certificate to sell stock follow
i conference between James
Molt, corporation, commissioner,
and officials of the holding com
pany; Stock in the total amount of
$800,000 has already been sold
and collections totalling $174,000
have been made on these sales.
The original permit waa issued
by Mark p. McCalllster, corpora
tion commissioner under the pre
vious administrations at the state
house. -
Mott waa said to have Indicated
plana for reorganization of the
Empire Holding company were be
ing considered by bis office with
the view of conserving . such as
sets of the concern as were lert.
He saKF be xpected to have a
public statement ready within a
comparatively short time. .
Japanese to meet the "threaten
ing" situation.. '-V'l-y '
V W.' Cameron Forbes,. American
ambassador wbo has been on leave
In the United States, arrived at
Yokohama and . immediately ar
ranged to confer,- probably tomor
row, with Baron Kljuro Shide-
hara, the "foreign' minister," con-
earning Manchuria. Japanese
tfbops "have been in control of the
southern part of the country since
Seotember-ll. , . .
Observers agreed the fight In
the fog. last night and today over
the Nonni river, bridge destroyed
what few. hopes remained for suc
cess of the League of Nations-plan
for a return to normal conditions
in Manchuria by :November.ie. :
- The immediate cause of today's
battle, after which the two armies
rdug in" on either aide r of ? the
river.'waa enf Quite clear. The
Chinese troops were those of Gen
eral Man Can-Shan, supporter of
the absent nationalist governor,
Wan Fu-Lfn.
Spoils
.One offer came from represen
tatives ot t circus who .wish to
take the elephant abouf the state
and to split the proceeds with
Plant. . Another tentative offer
came tor,Tusko'a exhibition in' a
soo. , A Eugene. fertiUser firm
was also understood to be ang
ling for the elephant .and Plant
was negotiating with them, upon
the provision that Tusko not be
killed.
"My price for the elephant is
1500," Plant said late yesterday.
That price la contingent on the
fact that Tusko be allowed to
live. I am not going to let that
elephant be killed."
Plant Immediately , announced
after he- had purchased the
pachyderm that be would charge
an admission of one dime to all
viewers of hie big pet. He also
ctated that If he did not sell the
elephant he would exhibit him
locally. Plant announced also that
he had secured a number of vol
untary backers in his project, Sa
lem men and women- who stood
ready to furnish - provisions for
the elephant this winter rather
than see him "murdered."
When 10 o'clock came yeeter
(Turn to page 2. col. )
TWELVE INJURED
If 1
National Flyer Derailed;
Two Critically Hurt,
Both Trainmen
WINNIPEG. Man.. Nov. 5
(AP) Twelve persons were in
jured, two seriously, when the
crack Montreal bound flyer of the
Canadian National railways the
National was derailed 17 miles
east of Winnipeg tonight.
Two baggage cars, a tourist
coach, day coach, diner and
sleeper left the tracks. A broken
rail caused tbe wreck.
Six of the injured were mem
bers of the train crew, a state
ment by A. A. Tisdale. general
manager for western lines, said.
The most seriously hurt were
George Whltworth, dining-car
waiter, who may lose an eye, and
R. P. Stewart, Toroto. dining-car
cook. -
Two tramea nurses were
aboard the train and were able
to render first aid. -
I DEBT HOSTAGE
Charging that his daurhter.
Wanda Leone Isaak. Is wrongfully
held by Bert Hackett and his wife.
wary ttacaett. at their home in
Wood burn. Theodore Isaak has
filed petition for writ of habeas
corpus. Hearing has been set for
9:30 o'clock Saturday - morning,
November 7. before Judge Hill.
Issak sets forth that the Hack
etts. or either of them, are holding
the cniid in lieu of money they
claim Isaak owes them for care-of
his wife during her last sickness.
His wife : was the defendants'
daughter. He says they cannot le
gally bold the child for such cause,
and furthermore that he does not
owe money for his wife's care.
Democrats Will
Meet at Eugene
Saturday, Plan
EUGENE, Ore.. Nov. S. (AP)
Fred . FIsk. chairman of the
Lane county democratic central
committee, announced today dem
ocratie party leaders of Oregon
will be guests of the Lane county
democrats at a meeting here Sat
urday. - ;. .w;;.
Flsk said he believed nothing
would be done at Saturday's meet
ing to throw support to any presl
dentlal candidate and that prohl
bitlon and other controversial sub
jects probably would not be dis
cussed. ' .
Child Burns to
Death in Barn
ABANDON. Oto., NOV.' S (AT)
-Scott i Williams, , 2, sob of -Mr,
atid Mrs. ; Tally ; Williams. . was
bnrned ' to death yesterday when
fire destroyed the barn on the
Williams farm near here. The boy
and a three-year-old sister were
said to have been playing -vita
matches In the barn loft.
RAIN
I
CH ill ELD
One Crew; of. Engineers at
Eugene, Three Others
Will Start Soon
Area to be Flooded by dam
Construction, Nature
Of Terrain Eyed
PORTLAND, Ore., Nov. S
(AP) The preliminary survey of
the Willamette river, looking to
ward ultimate canalization of tbe
stream, Is now underway by the
U. S. army engineers, Major O,
O. Kuentx, district engineer, an
nounced today.
One of the four survey parties
which will work on the river has
been dispatched to Eugene and
the other three will be sent out
as soon as they can be organ
ized. Each party consists of sine
men.
The work will start at Eugene
and -tv HI be concluded at the Ross
Island bridge In Portland. The
survey is expected to cost $53,-
000. Decision to undertake it
was made October 22 by the war
department.
Major Kuentz said the work
will consist mainly of preparation
of topography charts Indicating
the extent of lands that would
be overflowed by construction of
necessary dams, and drillincs to
determine the nature of under
surface bearings for tbe founda
tions of these dams and locks.
Naturally, the district engineer
said, much thought will be given
to location of the dams so as lit
tle as possible, of the valuable
land will be flooded. -
The survey is expected to re
quire five months. Funds will be
requested as the work progress
es, investigations will be made
at , 8 and 9-foot depths and it
will be necessary to proceed aa
rar as the Ross Island bridge to
reach deep water.
As soon as tbe survey Is com
pleted it will be forwarded to
Colonel T. Robins, division engi
neer at San Francisco, who will
base, his, report to the war. de
partment on the information de
veloped.
FIVE KILLED WHEN
E
CAMDEN, N. J., Nov. 5 (AP)
Crashing to earth on a golf
course as it attempted to land at
a nearby airport, a Washington
bound passenger plane early to
night burst into flames, killing
five persons. The plane had left
Newark at 5:48 p. m.
Those killed, all burned beyond
recognition, were Floyd Cox,
Washington pilot; Elmer Smith.
Washington; Vernon tineas,
Washington; George B. Taylor,
Washington; and Francis M. Ehle.
Riverton, N. J president of the
International Resistant company,
of Philadelphia. t
The plane, a high speed Lock
heed Vega monpplan owned by
the New York-Philadelphia-Washington
Airways corporation, ap
parently waa gliding to a safe
landing when it suddenly nosed to
Ihe ground.
Motorists on a highway and at
tendants of tbe airport hurried to
the scene but were unable to res
cue any of the passengers because
of the intense heat. Firemen ex
tinguished the flames.
Shingle Mill at
Milwaukie Burns
With Heavy Loss
MILWAUKIE, Ore., Nor. 5.
(AP) Fire destroyed the Mil
waukie Lumber 4b Shingle com
pany's one-story mill here tonight.'
S. C. Tevls. president, estimated
the loss at $15,000.
The mill was operated electric
ally and Tevls said he believed a
short circuit started the fire.
The mill was closed down last
Tuesday to await a supply of logs,
Tevis said.
The principal loss was in ma
chinery. -. ..!-. . '
Watch for
Sunday
Statesman
The . . Sunday. Statesman
bristle -with- live- features
and complete views coverage.
S pill reports of all' the
football games founding Pa
cific coast sjames. "
Page features: "Garden"
'page; Kama page.'.- V "1 '
' '- Special for next Ssuadayt '
"Filmed . Literature," by- D.
H. Tahnadge,' sage of Salem :
Salens. School System, "ape-:
dal articles -by - represent- ?
Uvea ef Salem schools. ' - - :i
- Colored corniest Polly and ;
Her Pals; Popeye; two pages
olack and white comics.
Li
CflfiSHES
1U IUHL, LUliAL
TO
ALL RELATIONS
A. A. Lee and Other Officers
In Salem Resume Full
Control, Stated
Association in Good "Shape
Says Commissioner on
Investigation Basis
Complete and Immediate sever
ing of all relations between the
Mutual savings and Loan associa
tion of Salem and the Prudential
Bank corporation, Portland, la to
follow the taking over of the
three Portland associations . con
trolled by that group. State Cor
poration Commissioner Mott an
nounced late yesterday. '
At the same time he Issued a
statement to the public that the
local association was In good
shape, according to his Investiga
tion, and that he considered its
local officers fully, competent to
manage the association's affairs.
As a result the Mutual Savings
and Loan association here will re
sume operation under full control
of A. A. Lee, secretary and man
ager, J. L. ingrey, assistant secre
tary, and E. M. Page, second vice-
president of the company under
the existing organization. Direc
tors Carl H. Johnston, J. V.
Whipp. L. Jenks and J. H. Kelley,
all of Portland and directors of
the Prudential Bank corporation
will be asked to resign. T. M.
Hicks, local director, is to retain
his position.
Assert Confidence
In Local Officers
'Mott stated that his reason for
not interfering further in the lo
cal company's affairs or with tne
one at Eugene was because of his
confidence In the local officers.
their nroved experience in the
savings and loan field and the
successful record of operations
they possessed.
He said he wished the two asso
ciations disassociated from their
holding company and returned to
the purely local, community-serving
status maintained heretofore,
Mott said he considered ex
penses of operation of the local
association had been high since it
was acquired by the Prudential
(Turn to page 2, col. 2)
Congressman and Mrs. W. C.
Hawley are scheduled to leave
Salem late this afternoon bound
for Washington, D. C, and the
coming session of congress. The
congressman and his wife will to
east by way of California, stop
ping- there for several business
engagements.
Congressman Hawley will pre
side at the republican caucus he
has called in Washington, Mon
day, November 30, one week be
fore the opening of congress.
While the present political situa
tion points to a democratic speak
er, the caucus may yet be chare
ed with the duty of selecting a
speaker, if death of some member
upsets the status of the bouse
within the next month. In any
event, the party wUl be thorough
ly, organized.
Yesterday ' the congressman
spent in finishing odds and ends
of work connected with various
local problems in the first con
gressional district which ho has
represented continuously since
March 4, 1907.
Porter to Pay
Fine; 60 Days
Jail Suspended
SILVER-TON, Not. 5 Allan
Porter, who Wednesday pleaded
guilty to the charge ot Interfering
with an officer who was. making
aa arrest, was lined IZ5 and costs
In municipal eourt today. He was
also sentenced to spend CO days
in Jail, bat this sentence was sus
pended on condition that young
Porter leave town and stay away
tor six months. - V
-Porter interfered 'while police
were attempting to arrest William
Vearier and I Vearler early Sun
day morning after their antomo
bile'had, crashed Into a parked ear'
and knocked down Officer -Kennedy
who was "working on the
tires -which had been deflated in a
Hallowe'en prank . 'i';-.
; -MnffNG. rDEAjT! 'pv&'u'Z
LOS ANGELES, Nov. 6 (AP)
John B. Tread well, 14, known
as the dean of California , mining
engineer, died at a hospital Bare
today.";; . - ''.v-l 'l.
1
mm 1 DEPART
FOR GAP TAL TODAT
Surveys Started for
Widening of
High
way
Spaulding Confers With Engineers; Proposal
Is Made to lay Wide Strip on one
Side, not two Shoulders
ENGINEERS from the state highway commission are now
surveying the Pacific highway south from New Era in
Clackamas county and preliminary work to secure needed
right-of-way for widening and straightening the highway
will be undertaken soon, it waa announced yesterday at the
highway department's offices here,
- , o Senator C. K. Spaulding-. orig
PEP PARADE HELD
E
Willamette Rooters see 35
Reasons why Badgers
Should not win
Willamette university students
held a pep parade from Waller
hall on the campus to the heart of
town and then back to the foot
ball field last night to create In
terest In the Badger-Bearcat foot
ball game which will be played on
Sweetland field tonight at 8
o'clock.
Tbe university baad led the ser
pentine down State street, herald:
log the football game which prom
ises to be the best home game of
the season. -
The largest number .of students
to turn out for a rally here yet
were on hand and considerable
excitement waa stirred up In the
business district.
Tonight's game has vied with J
Tusko and Manchuria tor news
value from the first of the week
and now with . many rumors of
confidence-plus emanating from
Eldon Jenne's camp and with a
number of the . Bearcat stars on
the injured list, tonight's contest
and the likely score is under dis
cussion everywhere.
The university band baa ac
quired more precision in Its play
ing and will have new selections
to offer tonight. Plans are already
being considered to send the en
tire band to Whitman for the
Thanksgiving day football game.
Following the rally last night,
the students gathered In front-of
the grandstand at Sweetland field
to give yella for the team. Coach
Roy 8- "Spec" Keene "had a sore
throat," so Assistant Coach How
ard Maple was the speaker of the
occasion. Maple did not predict
victory for the Bearcats, but
pointed to 35 reasons (inside of
football uniforms) why Paclfie
should not win.
To complete the evening's pro
gram, a Jamboree was held at the
Willamette gymnasium where the
band played and a general get"
together was held. The football
men joined the group as soon as
they completed their practice.
1 1 ' ' "" " ' ' 1 4
Assessors Will
Be Here Today
County assessors from aU parts
of Oregon wiWgather here to
day to confer with members of
the state tax commission regard
ing; county tax ratios. The assess
ors held sessions at Corvallis
Wednesday and Thursday.
DEDICATE TEMPLE
BEND. Ore.. Nov. 5 (AP)
Bend's new I. O. O. P. temple will
be dedicated here Saturday. The
temple was constructed by volun
teer labor.
0 F
War Mothers Hold State
Convention; Elect Today
Delegates from the four chap
ters of the American War Mothers-of
Oregon two chapters In
Portland, one In Albany and the
Salem . chapter met In Salem
Thnrsdsy in the fourth biennial
state convention.
All meetings are being held In
the Masonic temple, fifth floor.
This morning the session will be
oecnpled with election of officers
and several Items ot Important
new business. There are 11 offi
cers to be elected and these will
be installed In " the afternoon
meeting. ; Mrs. Ada V. Skiff of
Salem is the state president and
Is presiding officer for the ses
sions. . -;;.- - . ' - - r
The . nominating . committee
which will report this morning Is
Mrs. Hi V. Skiff, - state presl
dent,' and the fear chapter presi
dents,. Mrs. AV A. Lee ! or Salem,
Mrs. Era Carnegie of Albany,
Mrs. C. Belle Duncan of Waverly
Heights, and Mrs. Xva Harder (
Portland. ,;'-
-The Thursday morning session
Pacinc Diitpnfjnifinf is
to
inal proponent ot a wider
stralghter road from Salem to
Portland, held an extended con
ference with Roy Klein, state
blshway engineer, the two men
going over details of the . pro
posed improvement.
While Senator Spauldings res
olution adopted by the commis
sion In October here calls for
the addition of a five-foot con
crete shoulder to either side ot
the existing; highway, some of the
engineers in the highway depart
ment lean towards the. widening
of tbe road by the addition of a
ten-ioot concrete strip on one
side. With the resurfacing of
the present lC-foot highway and
of the two two-foot shoulders,
the completed road would be 30
feet in width.
.The engineers pointed out in
the . conference with Spaulding
that such a road would permit
the addition of another ten-foot
shoulder as traffic demanded It
and the completion eventually of
a 40-foot road between Salem and
Portland. These engineera claim
the strip on one side is perfectly
feasible and that traffic can be
well handled. The road" leading
to the Interstate bridge on the
Columbia is cited as an example.
On the estimated cost of S 1,500.
000 in purchasing right-of-way
and widening the road between
New Era and Salem, from 130.-
000 to 550,000 can be saved by
the widening on one side only.
highway engineers claim.
Commissioner Spaulding Is
known to be opposed to the de
partment's plan, holding fast for
the plan originally proposed in
his resolution.
(Turn to page. 2, col. 4)
WILL RECLASSIFY
LANDS IM COUIVTY
Hearing on the reclassification
of 18.147 acres ot reforestation
land In Marlon county will be
held In Salem January 12, 1932,
Linn Cronemiller. state forester,
announced yesterday. Hearings
are also to be held throughout
the second week in January in
Coos, Deschutes, Lane, Linn, and
Tillamook counties. More than
425,000 seres of reforestation
land will be subjected to classifi
cation. The purpose of the hearings la
to give the owners and other In
terested persons an opportunity
to present arguments either for
or against any or all ot the clas
sification. Following the bearing
a record of the proceedings, to
gether with the recommendations
of the bosrd. will be sent to the
state tax commission. The com
mission will Issue the final order
for or against the classification.
In event the decision is fa
vorable to the classification, the
lands will be subject to an an
nual forest fee of five cents per
acre and a gross yield tax ot
12 per cent.
had mostly to do with reports
from convention chairmen and
committee announcements, to
gether with the -formal opening
of the convention.
The . afternoon meeting was
given' over to reports and greet
ings. ! Mrs. - Emelle Hendricks,
first state president, appointed
by Gov. Withycombe, and also a
national rice president, gave
greetings' to the Mothers.
-Mrs. Ada V. Skiff, state presi
dent, gave her report -: which
showed among other things that
there are lit War Mothers; with
paid np dnes in the state organ
lxatlon. Of -this number Salem
has -104 members. V It" -v r. '
Mrs. Skiff.polnted bat that the
present organisation Is 11 years
old.' Wit was brought into exist
ence .by Qoverndt--'.Withycombe
when ' he". . appointed Mrs. Hen
dricks state president. In " order
to increase tbe -membership Mrs.
Skiff recommended a paid organ
iser be placed In the Oregon field.
- (Turn to page 2, cot l) ,
Callahan put in Control ef.
Businesses; no Plan to
. Liquidate, Stated ;
Withdrawals AIso.Blamer
On Difficulties Other '
Loan Groups Faced
Tbe Prudential Savings A Lead
association, the Federal ttl-i
Savings & Loan association asdt
iuw union bariBgs i nnn amocl
atlon. all Portland concerns witsi
total assets of $4,340,981 las
yesterday were placed in th
bands of State Corporation Com
mlssioner Mott . for operation
aiou promptly announced that J
W. Callahan, superintendent eg
me savings and loan department
In bis office, would take ehergw'
of the affairs ot the compai
Friday. November nA
continue to operate them pending
- wuca geuerai Duswees een
dltions made a return of the three
associations to their stockholders)
feasible.
Directors and officers of toe
three associations voluntarily re
leased control to the corporation
commissioner and issued a re
olution dated November , la
which they ascribed their action
to "general business conditions
and particularly the liquidation ef
several savings and loan associa
tions." These conditions, tb
statement read, "have caused aj
temporary abnormal demand fo
withdrawals which, due to he
permanent nature ot our invest
ments, are in excess of available
Income.
All Finns Solvent,
Mott's Opinion
In assuming control of tbe as
sociations. Mott stated here Late
yesterday that he considered all
the firms solvent but unable t
pay all shareholders in full ton
their investment. He said be had
no idea of liquidating any of the
associations but intended rather
to operate them under his euer
v sion with an idea of harboring
all assets la the three groups.
Mott said he thought there had
been no "stealing" whatever freva
the assets of the associations felt
he did blame the former officer
for extravagant and unsound boe.
iness policies which had increased
expenses or the associations be
yond the earnings, thus Impairing
the obligation of shareholders If
the practice continued.
Motfs statement follows:
"In assuming the duties Isa
posed upon him by this provUiosi
of the 1931 statute It Is not the
Intention 'of the corporation com-,
mlssioner to liquidate any of the
three associations which he ie
now taking over, but to operate
them on the basis of the most rig
id economy and solely In the In
terest of the Investors, who are
the real owners of these assocto
tidns. An exhaustive examination
of these companies, which has
been recently completed by this
department, shows that while they
have been impaired by a lHg,
continued program of over-expas-sion
and by extravagant methods
or operation, they are still solvent
and that It is entirely possible
through strict economy and the
c operation of the shareholders,
to restore the associations to a
sound condition.
"It is estimated that the asso
ciations involved in this action
can be operated by the corpora
tion department at an expense not
exceeding one half of the cost of
operation under their manage-"-meat
by the Prudential Baneer
poration. , and the department
hopes within a reasonable time to
(Turn to page r, col. 1)
Tragedy Opens
A New Life
For Heroine
The big plane swerved,
backed dlzzilyawl feU!
: Two lrl Passengers met
destiny head . on. One, av
gangster's sweetheart, flee
lag the old Mfe, had thrust
her aa amazing oppor
tanityl V . ,
Her, chance friend and
confidante, the society girl
with wealth and breeding,
met death I ,
. . . . . . . . .
-, - --- . ;
; -To find but what happe--rd
after, that tragic prelude
to love and drama, read
'MASQUERADE'
54 By FAITH BALDWIN .
(Aathor of Sfake-Beliere)
v: Beginning Today In . '
The Statesman
m
... -. r- ':.