SERVICE We guar-.atee our cur rier service. If yoar paper does not arrive by 6: SO, call 0101 and a ropy will b delivered at once. THE WEATHER Unsettled with rain today and Wednesday, tempera-' tare unchanged ; 31a x. Temp. Monday SO, Min. 87, rain 87 Inch, river 1.8 feet. FOUMDEP 1651 E1GHTY-MRS1 YEAR Salem, Oregon, Tuesday Morning, November 17, 1931 No. 2U I UllUL IU General Mah now Reported As Withdrawing; Agrees To all Japanese Condi tions Says Tokyo Report Previously had Moved his Front Line up Close to Jahsing; Compromise is Refused by Japan TOKYO, Nov. 17 (Tuesday) (AP) Tsitslhar reportB to the Rengo news agency at Harbin to day said General Mah Chan-Shan began withdrawing his Chinese forces from the Nonnl river front after accepting all conditions im posed by General Honjo, com mander of Japanese troops, for peace in northwestern Manchuria. The five conditions of General Honjo, announced last Saturday by the Tokyo war office, were: General Mah should withdraw to Tsitslhar. Such Chinese forces as were concentrated at Tsitslhar and An ganchi must be returned to their original posts. Restraining line For Mah is Fixed The Chinese general could not comes south of the Chinese East ern railway. The Taonan-Anganchi railway was to be administered by a board of administration under a Japanese adviser. General Mah must not inter fere with the management of the Taonan-Anganchi railroad or place any obstacles in the way of the administrators. , . The Taonan-Anganchi railway runs north and south in Man churia, terminating at Anganchi, a few miles south of the east and west Chinese Eastern rail way. The Taonan-Anganchi line is Chinese owned but was built with Japanese capital while the (Turn to page 2, col. 5) IS SET WEDNESDAY The first program of the Salem Symphony will be presented to a waiting public Wednesday even ing at 8:15 o'clock in the armory. Prof. R. W. Hans Seits and his orchestra of about 55 people have been diligently practicing since September 15 and the program which they have ready to present bears the mark of hard work and enthusiasm for an orchestra which Is civic in nature and broad in scope to bring the best music to Salem through her own per formers. Miss Barbara Thorne, soprano soloist, Portland artist, will be the guest soloist. Miss Thome has done outstanding solo work both in Portland and out of the city and her appearance Wednesday night is being anticipated In mu sleal circles. A large number of Salem people are very much interested in the Salem symphony and especially Interested In making it a civic or ganisation. A large sustaining membership has been secured on which the names of many prom Inent people appear and -to which will be added the names of many more. HI IT Governor Much Pleased At Salem 'Homecomimg' "The people of Oregon have been very kind to me during my illness, and I certainly appreciat ed my homecoming here today," Governor Meier declared Monday npon the occasion of his first visit to his office in the capitol since August Illness which at times was considered serious, has kept him -confined to his room in a Portland hotel much of the time during the last 12 weeks. .The governor made the trip here by automobile, with Mrs. Meier accompanying him. Fol lowing an. exchange of greetings with Dr. R. E. Lee Steiner. su perintendent of the Oregon state hospital, newspaper correspon denta and a number of state offi cials, Governor Meier entered bis private office where he was wel comed by Miss Beatrice Walton, lis. private secretary, and other members of the executive depart ment staff. On the governor's desk trere a number of gifts re ceived during the past week, while scattered about the room were boquets of beautiful flow ' ers from state officials, the press. Ghost Investments and Large Salaries Smooth Pathway of Empire Holding Co. Officers 1 None Paid Over $2000 Cash on $20,000 . Stock, Shown Coshow Received pay While Still Upon Bench, Claim . "Editor! tfote: This is tie second of a ur.ei of articles to appear in The States man aaowing the deTlcea resorted to by the Empire Holding; company in an 1800, 000 stock seilinf campaign this year In Oregon. By SHELDON F. SACKETT WITH the Empire Holding company duly organized and incorporated, and a permit to sell stock issued De cember 10, 1930, by Corporation Commissioner McCallister the "great potentialities" of Oregon's "vast" insurance company were soon to be ready to be paraded be fore an unsuspecting public. As the foundation stone of the promotion, the personal subscrip tions of the officers and directors were to be frequently referred to. Each man on November 14, 1930, had given a solemn oath that he was the owner of 200 shares of Empire Holding company stock and that the "actual money to the company" was $20,000 from each individual. The Statesman today prints a fascimile of the applica tion made to McCallister for the stock selling permit, an applica tion which undobutedly was the leading consideration for the granting of the license. Clancy Only One Who Paid in Full An audit made by Corporation Commissioner Mott on July 31, 1931, fails to reveal that any one of the five original officers and directors, ever paid in excess of $2000 towards his 200 shares of stock. Instead of $20,000, O. P. Cosh ow paid $2000. "There is no pro motion stock and no contracts, agencies, or other property turn ed in lieu of cash" read the appli cation. In f.-ct, each and every director was Immediately credit ed by the Empire Holding com pany with $3000 commission to wards his $20,000 stock subscrip tion, this commission evidently representing the director's indi vidual services in selling himself the stock. W. R. Adams, who had lived at Med ford and who now lives in Portland and who was to be the general physician of the insur ance companies, paid $2000 in stead of $20,000, was credited with $3000 commission on his own stock and like Coshow, Fetty, Clancy. Keller. Stockman and Robinson, gave notes for the bal ance due to be paid within a five- year period. Books In Violation Of Stock Application - The books of the company are in open and flagrant violation of Sections 5 and of the appiica tion made to sell stock In which the statement is made and sworn to that "the actual money paid the company" by Coshow, Fetty, Adams. Stockman and Frank Kei ler. Jr. was individually $20,000 and that there was "no property turned in lieu of cash." Fetty, lumberman, former Sa vannah, Ga. resident and a iriena of Adams, did not pay $2000, the company's books show, but rather $1500, the balance of $500 which was to have been his original iz. 000 payment being charged against him as an open account. Jay H. Stockman, former as sistant in the district attorney's office in Portland, paid no cash whatever for bis stock, the books reveal. At first he was credited with a payment of $2000 but sub- sea uentlr this credit was cnargea back to Stockman's open account on the company's ledger and while he was charged no interest o- the S2000 item, the books of the company revealed that he wed for the $20,000 stock on (Turn to page 2, col. 3) and personal and political friends of the executive. Governor Meier showed little evidence of his recent illness, and grasped firmly the hands of a large number of persons who called to pay their respects dur ing the day. "It certainly seems good to be back in Salem", Governor Meier said as he glanced over a number of important official documents on his desk. Because of the large number of persons who called upon Gov ernor Meier during the day, no ooara meetings were held. The first official act of Gov ernor Meier was that of writing a check for $150, covering his contribution to the unemploy ment relief fund now being rais ed by state officials and am' ployes. Although Governor Mei er's actual contribution, based on one day's salary per month over a period - of five months, would have totalled $105, be generously, added $45. Governor Meier presented the (Turn to page 2, coL ) Keystones in Crumbling Financial Arch Built by Empire Holding Co. UDtMI OLivta co mow Mr. Jay H. Stockman, General Counsel, Ektplrt Holding Corporation, Portland. Oregon. Hoar Sin I have accepted the position Holding Corporation tendered to ae reasons. First. I am attracted bv the and directors of said company. After exaainatlon I have found every nan to be an upstanding character who vould not engage in any but an honest, square business dealing. Second, after examining care poratlon and the by-lavs of said eorporatlon, I found every provision of both veil calculated to Inspire confidence In the eonpany and its manageuent to oonduet an honest, lucrative and straight business. Third. X was favorablv Ivmraaaart at a K .mtliuii mnA prudent tanner In vhioh the eeanan salaries offered te Its officers is no suggestion er any Bonuses er ether lnduoeaents tending to Induce hlRh Of S sure sales of lta atook: on the aantrarv. ivtr provision has "been Bade for all of psar t o open ana aoove eoara ana proiiiecie axong an nonest and Fourth, the eonpany la capitalised for an aaount sufficient reasonably te Inspire confidence in its success. There Is no indication in any of the proceedings of the oompeny to etteapt to de business except upon sound basis. The aangeaent ef the company and its proceedings, as revealed in its articles ef In corporation and by-lavs, are conservative, rational and sound. I aa glad te be associated with the ether officers of the eonpany and to be engaged in a business veil planned te render a real service to my native state. Oregon needs the coapesy te assist in the development ef its vast resources and to keep at home, as veil as to drav froa ether states, a part ef the large aaount annually invested la Insurance business. OTCa Above: Laudatory letter written by 15, 1030, while on the supreme court bench. This statement bead ed the extensive, expensive and carefully prepared prospectus glib salesmen of the company used ao successfully throughout Oregon. S. vh Mew a tree sttlr pt ia refers' la th Offictrt W Dindtrt ef tat Corporation prppMin to km wwh MeniliM: &alea j . Oregon fort land Oregon Sortl and res, on Q . . T. Corfi 0 . UJUJettj t ortlaid 3. V. fi tarings ti Oregon rortland FrexH Cellar, Jr. Oraion 0. t, Caahew X. : - Adape i. B, .sjtecjtaama a StsU yersoM ef U) If Dm Hid capital atack U U bo kautd ia ankaaie or Arsoni of far aay atkar sMmtiaa tfcaa aetaal CMb to On corporation i atata what th actual caasioaratko la to be, Mctf tag Uw iiaasel mat MaS f wtiHios tvcaiasail tar aaca ittm. W Doacrtba f uBy taa nal oatata. stoat, aqoivaMnC. patents, taatneta, earffeoe, er other caailainilaa ncttni la racaaae tor aaid atock or other Kri boo, totiac the vaia thenot aad PBUaaiiic eaaottfea of titlo and aacaaraacei ar iaetMedaan U tBJi ! vhataw aaid aropartj la aay war taiiJ la Utiaattaa. ' There tt no promotion stock- end no contract!, etaneloa, or other nronertT torcafl In llau ef eaart Deeripti- wmrfar 4 Vial "to Sasw, ajnocat aothorbed, B Otker securities, called , STATE OF OREGON, Coast? ef , JTCLTSCHAH Wa, the aixJcrrfrnnl, beint firrt duly sworn, aadl for himl dpo and tayi : That the eadersiiBed are the duly atected, qualified aad actio officers and dlroetore a the wrthio-Bamed aoaapaay, aa tadkatad kelow: thai v are familiar artth tho contract of it botlorm aad affairs, aao that wo haa braasticated and kaow ita fiaandal oatlittoa; that w are foirjr qoakfled aad oampetcsa to testify aa to the troth of the facte called for by this blank; that we have carefully oiaminod ad statements and answers ia the within statement aad exhibits attached hereto, and that each and aO of the representations Mdo art tr, aad that ao material fact ia answer to the eereral sniettana haa keen omitted', and we fottheMay that there are ao atreemeata, naderstaadiata or eontracto. either vernal ar written, expitas er tonpUod. by which any arte haa received, or ia to receive, directly or indirectly, any eonetderattaa in any manner whatever for the sale of the cotnasjryn saairrUaa. or sw ita stobouso accpa aa sascmca ia uua apancatwa saa im fcibeerfted sad nrori te before sm at tot-JIZ day of ftUCUfeSt. f MOTAU4L. SCAI.1 - The roresokc veriCcaUaa mutt bt Kad by Wea conptoted, with -rhJbfo ttacb'' Above: Excerpt from application poration Commissioner McCallister. StAtementa that f 100,000 had been aiibscribed by officers and directors in cash are) shown to gether with the inclusive oath duly sworn to and attested in which each incorporator states there haa been no evasion in th facta he has given. These pictures made for The Statesman from official records held by the state corporation commissioner. County Union of Endeavor Holds Rally in Salem Tba Marion Oonnty Christian Endeavor anion held a lively rally at tba Presbyterian ehnreh la Salem Monday night. Motion pictures of tba conventions held at Medford and at San Francisco wera presented, and tba state president spoke There are 41 societies. In the county union, and In the Invita tions sent out for this meeting, each was given a link from a paper chain. The chain was as sembled at the rally, with nearly all of the links accounted xo. . eat COUNT Kovsaber 18, 1930.. sf President of the tan Ira through you for several nersonoel of the oraanicar. full v the articles of incor. fcae-lna lta hunlnt... t and eaployeea are sodeat. There the undertakings ef the ood- invites investments solely open plan. truly yours, Chief Justice Coshow November 800 800 I fiJUCCC 2S&. to ka raVaial n. i authorised. I none . ; kQai. S-Jipr. gCg , Preaideni, .JOSlSlAUMAx ,. , Secretary . V ' Uotarjfo 1 ' r XlJ. li... . .w m m mumm w lav two azseutrfs ofnetri aad st least thros eUroehva - 4 dnh - "ted, mail etatenser t CorporauVai to sell stock filed vritla States Cor Smaller Group Is Sent Out to Highway Tasks Countermanded orders yester day resulted In fewer men than had been planned being sent out on the new shift for emergency road employment. Twenty-Ova men were put to work on the Pa cific highway south of the elty and 25 on the highway west of BJckreall, all registrants at the U. 8. employment office here. When more work will be avail able Is uncertain, according to Sim Phillips, agent at the office. Registration continued to bold up in volume yesterday and 30 more men were listed, mostly Sa lem residents. WOMAN STRUCK mi rn in la GRAVELY HURT Youthful Attacker Will be I Held Pending Outcome Of Head Wounds Entered Aumsville Home in Search of Beer, Story Given to Officials Robert Cox, 17, of near Aums ville, will be held in the county Jail pending developments In the serious condition of Mrs. Sarah Looney, 70, whom he allegedly beat over tfte bead and shoulders with a ginger ale bottle on Satur day night in the home of her son- in-law, Henry C. Yessen, near that village, John H. Carson, district attorney, said last night. He is beng held on a Juvenile court war rant. Mrs. Looney's condition yester day was reported as serious, al though she seemed somewhat bet ter thai, on Sunday. She suffered fcur cuts in the head, one very deep, and a shoulder injury which pained her severely. According to the lad's admit ted story of the affair, said the district attorney and S. O. Burk- hart, deputy sheriff who yester day investigated the case, he en tered the Yessen home with the Intention of stealing some beer. He became afraid he might be found out, when Mri. Looney awakened and ordered him out. Mrs. Looney, he said, then threw a shoe at him, hitting his chest. When she Jumped out of bed and grabbed hold of him he j struck her several times with the bottle, finally shattering it, then (Turn to page 2, col. z) INDIUMS LAW ATTACK IS FILED Violates six per Cent tax Limitation is Claim in Complaint Filed Violation of the six per cent tax limitation of Section 11, Ar ticle XI of the Oregon constitu tion, is made in the 1931 intangi bles tax law and the all tax lev ies collected thereon are void, Isabella M. A. Barnes declared yesterday In a complaint filed in circuit court here in which the state tax commission and Gov ernor Meier are made defendants. The plaintiff asks for a restrain ing order of the court to prevent further collection of the 1931 tax and for a refund of all 1931 In tangibles taxes thus far paid. The plaintiff contends that the state tax commission made no provision for the intangibles tax enactment when the base was made up in. December. 1930. Since all proceeds from the 1931 Intangibles tax collection, after collection expenses are paid, go into the state general fund and since the base determined by the tax commission in 1930 was six per cent higher than In 1929, plaintiff holds the six per cent limitation is exceeded by the ex act amount of the net intangibles taxes collected. Maude B. Green and Mary A. Caswell yesterday filed in circuit court here an amended complaint to their original attack on the 1931 intangibles tax. They al lege that the measure is discrim inatory, and thus in violation of the state and federal constitu tions providing for equal taxation on all similar classes of property. Since banks are omitted from taxation upon intangibles, the plaintiffs declare the law Is in valid and ask for a restraining order from the court upon the tax commission, holding np any inriner collection or the tax. BESIK SIFE AFTER LOS ANGELES. Nov. Is. (AP) Near exhaustion from a night and day battle with snow drifts, Noah Beery, film actor, and two companions returned to Palm- dale tonight after being missing in a storm in the mountains east of there for nearly 36 hoars. Beery, O. G. Norrls, superin tendent of the actor's mountain resort near Palmdale, and A. L. Hendricks, a real estate man. formed one of three parties which set out early yesterday to bunt for Robert Elliot of Llano, who dis appeared in a snowstorm Saturday but was found by an Indian and returned to safety. Nightfall found Beery and bU companions miles from any habi tation, with' snow still falling aad their return trail blocked by drifts. They said they struggled through the snow all night and at dawn stumbled on a deserted cab- In. There they x rested until they .were able to resnme their slow hike back to Palmdale. nnm rltlMtn Mil WITH SNOW Health a a. rLzv COUNCIL WARNS PAPER FIRM ON BUILDING PUNS J l Must Start Construction in 90 Days or Lose Street Vacation. Stated Lighting - District Charter Amendment Ordinance fs Voted Down SALIENT POINTS IN MON DAY'S BUSY SESSION OP CITY COUNCIL Resolution orders Oregon Palp e Paper company to start construction work in 00 days else lose Trade street vacation. Downtown lighting dis trict ordinance providing for charter amendment voted down. Extension-of Center street aa stop highway for four blocks referred to commit tee. $360 annual cut in fire department expense ordered. Associated Charities voted $500 from 1931 emergency fund. Petitions introduced op posing redaction in police salaries, asking for more bns service between 19th and 25th streets. Claims for property dam age from North Mill street overflow referred to special committee. While the health unit budget In crease was the main event before the city aldermen Monday night, a group of other business affairs formed a busy prelude and heated postlude to an extended council session. Acting upon a resolution intro duced by Alderman Hal D. Pat- ton, the council voted to inform the Oregon Pulp Paper company here that the street vacation voted October 30, 1930, was done upon the express understanding that the company start construction on an addition to the plant within six months. The resolution points out that this promise has not been kept and gives the paper firm 90 days in which to begin work. The resolution provides that the coun cil shall take action to rescind its vacation of a 40-foot strip on Trade street if the paper company delays more than three months In starting work. After extended debate, the al dermen turned down an ordinance which would submit to voters the question of downtown street light ing districts. Mayor P. M. Gregory spoke ardently for the measure but Aldermen Dancy, Patton and Vandevort opposed it as an enter ing wedge tor Increased taxes on downtown property. Alderman Watson Townsend made an economy thrust at the fire department in his motion to whack off a $30 monthly payment to a fireman for distributing gaso line to city departments and for keeping records on the disburse ments. Townsend's motion prevail ed, the economy going Into effect December 1, 1931. Heretofore a fireman has received the money for the work and passed It along I to an amasement fund raised thereby for the use of the fire de partment. David O'Hara, chairman of the budget committee this year, said i the Associated Charities to date (Turn to page 2, eoL 6) Change in Librarian at Willamette is Rumored The executive l committee of Willamette university will meet this morning at 10 o'clock with several Important Issues pending. Campus rumors indicate that a change may be effected In the head of the Willamette university library, though no confirmation has been received. Dr. Frank G. Franklin is the present librarian. Another Important question will be whether or not a salary cut for the professors will be made at this time. A reduction la wages for the Instructors was talked at the June meeting of the board, and further action or a decision on this question may come up to day. As yet no cut has been mads In salaries. As far as new buildings are concerned, Willamette university will have to wait longer, according to President Carl a. Doney, who states that no funds are available for such purposes now. The $100,- 000 Ha user bequest was taken In as part of tba endowment and can not be decreased. The need for new buildings Is acute, with thoughts of a new library and a science ball paramount. Budget Active in War In Manchuria Emperor Hirohito of Japan took his first active step on connec tion with the Manchorian trou ble of bis nation when he per sonally authorized the dispatch of a fresh brigade of troops to the war sector. TUSKO WILL LEAVE TIGHT- Owners Plan to Take him To Portland at Once If Weather Good If it does not rain tonight, Tus- ko, Salem's only elephant resident will go for an automobile ride to Portland, not to return. Jack O'Grady .and Bayard Gray, the 10 ton-animal's owners, announced yesterday they had obtained the use of an airplane hangar in east Portland where they would lodge their charge for the winter. Two drum heaters will be Installed In the building to keep him warm. If it does rain, however, Tusko will remain at the state fair grounds yet awhile. As he is by nature a resident of warmer climes, exposure to the cold rains would endanger his life, O'Grady said. Already the elephant several times has suffered chills In his (Turn to page 2, col. 8) Typographers to Be Idle One Day To Help Jobless Capital Typographical Union 210 voted Sunday to ask its en tire membership here to give up voluntarily one day's work a month in order to permit any un employed members to benefit by the amount of work thus afforded. There are 37 members In the un ion here, about 30 of whom are regularly employed. The union has its meg at the state printing office and in a number of com mercial printing establishments in the city. C. W. Brant is presi dent of the local group. No reduction In the existing scale of $42 a week for day work and $48 for night work has been made, Brant said yesterday. Some discussion about a reduction in the scale has been carried on with in the onion and a proposition for a lower scale at the state printing office Is now pending before the state board of control. It is understood that the univer sity has a large amount of money in the endowment fund which has not been Invested as yet. Seversl fair chances hare been deemed too risky with a result that the mon ey is still unplaced. President Doney states that no dance committee report will be made. Last year a large number of Willamette university men and women signed a petition to have a general hearing on the dance question with the hope of gaining official permission to hold student dances. The petition was submitted to President Doney and referred to a committee. According to Doney, there has been no report on It as yet and he gives no indication that any report will be forthcoming. Frequently students Inquire con cerning the fate of the petition, but the answers have been vague. Nine members of the board of trustees form the executive com mittee with the following person nel: Dr. Doney. R. A. Booth, T. Collins, Lee, Lowe, Steeves, Wal lace and Mrs. Lantermsn. US Held tigum. Friends of Program Ftet? To Council Meeting. Get no Results Only Change in List Is for Firemen's Insurance; Talks Extended A score of women, employing the power of eloquence as -a feet ball eleven uses the povw -of brawn, made a vain charge last night upon the embattled line ef the city council in an effort te raise the $6000 budget appropria tion for county health work in 1932 to the 1S0I0 marlr wUm it heretofore has stood. The torts or the women who renna sen ted P. T. A. groups, business organizations, and that greater circle, the mothers of Salem, were backed by prominent men la the community in an honr'a itrsetl - to secure the $2000 raise. While the council's defense sagged. It never failed, and when adlourn- ment came, the 1932 budget for neaitn stood unaltered and safely past first and second readings. David O'Hara, chairman of the budget committee, tried to end the game by asking suspension of the rules and a final vote on the budget, but other aldermen, dis couraged by their failure to get the $2000 advance for health, bat undefeated, blocked the move. As a result the 1932 city budget goes over to the first meeting in De cember when a final although for lorn chance exists for health de partment advocates to wipe oat the 25 per cent cut now agreed upon. Fire Department Geta Only Change The only change in th nni as reported out from committee cme oa a suaaen, sweeping end run bv Alderman W. TT nnr. While the fight was hot over the neaun item and the fire depart ment was being considered as ft fall guy from which a izeotl chunk of flesh could be hacked to nana tne health proponents, Dan cey rose to nrotest in in mhHin. tones the omission of $1500 front tne nre department budget need ed for industrial accident insur ance. Dancy concluded his remarks by a motion that $1500 of tba 1932 budget be diverted frnm tha emergency fund and handed the nre aepartxnent for the Insurance Item. Like Napoleon who mareft ed while others talked. Danv called for the vote on his motion and as the health proponents) looked on aerhast. the aldaprnvm gave him a hearty affirmative for tne switched appropriation. Dan cy had made ready yardage for the fire boys. The fight for the $8000 health appropriation, easily the highlight in an extended and heated conncfl meeting, was made before a crowded gallery, dotted with num erous spokesmen, the majority ef whom favored more money f9 health. Hnckenstein Leads August Hnckenstein. leading the debate for Increasing the health appropriation, spoke with, eloquenee ef a democrat at th burial of Messrs. Hawley and Smoot on the reasons the present (Turn to pags 2, col. 1) A special meeting of the state highway commission will be held In Portland today, Roy Klein, state highway engineer, announc ed Monday. Klein said no delega tions would be heard. The commission was unable to complete its schedule at Portland In the two-day meeting last week, because of the large number of delegations on hand, and the an nual meeting of the County Judges) and Commissioners association. William Hanley of Burna. ai member of the state highway com mission, stopped off In Salem yews terday en route to Portland to ate tend the meeting. JTJDD TRIAL SET PHOENIX, Arts., Not. 14 (AP) Over" the objections of her attorneys, the trial date ot Mrs. Winnie Ruth Judd, con fessed killer ot Mrs. Agnes Le Rol and Hedvig Samuelsoh,' wan set fore December 15 today. Mrs.j Judd pleaded not guilty. - ITEM HNS 16000 DESPITE MUCH ORATORY raw TO MEET 1 T