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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Nov. 18, 1931)
SIM SERVICE THE WEATHER Occasional rains :, today, Riarsday . cloudy; moderate iemperatore; ' , Max. Temp, ruesday 40, Mln. 42, river aS feet, rata .SO inch. : We guar -n tee " out ear , Her service . If your paper doe- not arrive " by 6:80, call - 0101 and a copy Trill be delivered at once . FOUMDpO 1851 EIGHTY-FIRST YEAR Salem, Oregon, Wednesday Morning, November 18, 1931 No. 202. FIDELITY FIRM SIS Assets Estimated as Much . Below Liabilities in Report Issued Headquarters Formerly in .Salem, Investors Here - - Numerous, Stated A ; woefully defunct condition in , the American Fidelity Invest ment company's affairs was re vealed - yesterday when Ben W. Olcott, receiver appointed by the Multnomah county circuit court June 28, "1931, announced that: the liabilities of the company to talled 1322,973 and its estimated total assets $42,80$. Interest locally Is high since Elmo S. White, .its former presi dent and general manager, lived here the bulk of his life, and prior to removing the company's offices to Portland In 18 JO, -had the headquarters for the concern la the old Capital National bank building on North Commercial street. There are a large num ber of "Investors" In bonds and shareholders' stocks of the Amer ican Fidelity Investment company In Salem and throughout Marion county. Report Shows Loss WiU be Extensive "The thought uppermost in the minds of all creditors is what can be expected in the way of returns, and when, on their in vestments." writes Olcott. "This cannot be answered at this time beyond a . conjecture. The esti mated - present worth statement herewith submitted should give you a pretty clear Idea of the loss that will be suffered," Ol cott continues. "Olcott points out clearly to shareholders that the majority of "Investments" of the American Fidelity Investment company have little value. For example one second mortgage of 135,000 la given on a dry farm ranch in . Jefferson county, Oregon, prior to which is a demand mortgage or 132,700. Olcott has advertised the ranch for sale at $10 an acre which would leave a net of $7000 to apply on the $35,000 mort gage if the place, can be sold. "In the assets of "bonds and stocks" listed by the company is an Item of $95,794 of the capi tal stock of the Acme company. "This is worthless," writes Ol cott. Contracts receivable total $7190 and Olcott likewise ad judges these without value. Decline in Realty Values Is Reason Olcott farther states: "I find the affairs of the com pany seriously involved. A- por tion of the monies received from sale of installment bonds and stock of the company was invest ed, in real estate residences, apartment houses and farms. These properties, when purchased ;(Turn to page 2, coL 1) AS BURGLAR HERE Chester Duckwlts, paroled here last August by Judge McMahan, was sentenced in South Bend Wash- yesterday morning to six to 10 years in the state peniten tiary for attempt to rob a South Bend bank. , Duckwlts, finger print experts at Portland discovered yesterday was the same man who robbed the MaeMarr grocery at 1933 State last July 2 C. for which charge McMahan sentenced him to the penitentiary, then paroled him Before the law here he gave the 'name of Charles Douglas. : He was an honor student at a Seattle high school and football nlaver while ; there, 'the South Bend courts learned. 'Public Heal MM , Will be Much Curtailed ." f If the city's contribution to the county health department stands at the $2000 reduction which the majority of the councilmen seem determined to maintain, tiie a-" "tivities of the department prob ably will be eat to four main fune- v trol, school clinics of lessened la - tensity, recording of .Tital statis tics, and state-required sanitary , inspection. - ' " " So stated Dr. vernon a. uoug " las, county health officer, yester dav. He" added that the question f of the functions to be retained or . 'dropped would be up to the execu tlve committee of the department. - would be necessitated by inch T action on the cart of the dty, be- ; mA-ni. 1ik Minnt Miirt lit RTneriBn J MUW . M W . I . " - - ' - to cut its appropriation in propor i ' tlon; and ' hope of obtaining any ., - annnort whatever from the' Com- monwealth fund would go a-gum- '"inering.- .---s . ;- . . in the opinion of Dr. Douglas, ... under these : reductions, which Reducing AjjmamWts Paramount Ital i an Envoy Grandi and Hoover to go Into Huddle Today on World Issues; Visitor Hopes for Naval Accord With France WASHINGTON, Nov. 17 (AP) Lifting armament bur dens from the world's heavily weighted shoulders to night assumed a dominent place in President Hoover's con versations with Foreign Minister Grandi of Italy. The two statesmen will draw their chairs together at the White House tomorrow for -O T IIS LOCALLY Succeeds Levy; Others on Officer Staff Named, Plan is Outlined T. A. Livesley last eight was elected president of the Associat ed Charities at a called meeting of the general board. He will suc ceed Harry M. Levy, who recently resigned from that position. As well as electing officers for the en suing year, the board considered the matter of cooperation with the Community Service committee. centralizing agency for Salem charities. Douglas McKay, chairman of Community Service, outlined , to the board members the plans of his organization. A committee was appointed to confer with Commun ity Service representatives relative to harmonious relations between the two groups. In addition to the new presi dent, the following persons last night were elected to office and installed: J. C. Perry, first vice president; Mrs. Mae Carson, sec ond vice-president; Rev. P. W. Er iksen, secretary, and Judge Mark Poulsen, treasurer. Commfttee members elected were: Finance Edward -Roth-stein, chairman; R. O. Brady, George L. Arbuckle and Mayor P. M. Gregory, Service Mrs. Wil liam A. Schultx, chairman; Wil liam A. Schultx, Ray J, Stumbo and Mrs. Carson, field secretary, (Turn to page 2, col. 1) LUTHHS GATHER T SILVERTON, Nov. 17 Luth erans at Silverton are taking great interest in the Regional Foreign Mission conference which will open at 10:30 o'clock Wed nesday morning at Trinity church. The Rev. Martin Norstad of Minneapolis, field secretary of the Board of Foreign Missions, will -Introduce the general topic for discussion taken from Math. 8:9 to 10. The early business meeting of the entire five days of sessions will be that of the Oregon Cir cuit and the Women s Mission Federation both to be held Fri day morning, the former to be held at Immanuel church and the latter at Trinity church. The W. M. F. has arranged two programs during the week. The first of these will be given Friday morn ing at 10 at Trinity church. Mrs. H. L. Foss of Silverton will give the address of welcome to which Mrs. H. Rogen of Mon Itor wiU respond. Mrs. Alvin Le- gard of Silverton will give a vocal solo. Speakers will be Mrs. J. D, Runsvold and Miss Kulberg, the latter a missionary homo from China. The second of the program will be that of Friday evening at which Rev. George Holm, a mis sionary to China home on fur lough, , will give the address. Both Trinity and Immanuel choirs will sing. This program has been arranged for Immanuel church and will begin at 8 p. m. th Activity would total 110,500, the depart ment would face the dronslns of at least four members of the pres ent staff, dlsocn tinning of all In fant clinics, charging for immun ization treatments, reducing lab oratory work and milk inspection by so. per cent, eliminating all dental work, doing away jmlfh rural sanitation . work, .and stop ping : of the examination or con tacts with tubercular patients. Communicable disease control would bo limited to Investigation and quarantine of cases, school clinics to less intensive examina tion and nursing service; and sani tation work to - the required In spection of tourist camps and com munity vwater supplies. Unless staff members we-e so slilfted that an inspector conld be employed in the summer, the sanitation -work in the hop yards and .fruit o chards probably would be done away, with. V:M: .r.- - As the present ap?ropr!&tlon for the health departmen Is $37,700. ho cmt woull amount to 33.9 per cent T" , - ' - ' . . mm N Question Says the first of a series of talks. The foreign minister-today de scribed .the present as "high time" to carry the world-disarm' ament movement to a "practical result." He madevthls statement at a conference with newspaper men In the middle of a day de voted to diplomatic formalities and private talks with American officials. I think the question of dis armament Is the most Important existing in the relations between countries, he said. "It Is high i time for everybody to seek a practical result." At the outset, the minister ex pressed his appreciation for the cordial reception" America has given him and said his visit was directed toward peaceful cooper ation among he nations with a view to their economic recovery and general welfare. Asked about the possibility of a Franco-Italian naval settle- ment, Grandi said he was hope- zui ror such an accord. Italy feels such an agreement I would be good. I hope for practical result," he said. LETTERS SLOT OUT Local Firms all Asked to Name Representative to Aid Raising Fund Mailing of 1200 letters, com pleted yesterday cron, to bus! ness. proiessionai ana emc or ganizations of the city began the financial campaign of the Com munity Service committee, cen tralizing agency for Salem char ities. These letters requested each organization te name some member as service representative for that group In raising funds for winter relief work. as soon as these names are turned in to the chamber of com merce office, the representatives will be called together to confer with the Community Service fi nance committee concerning their procedure In soliciting funds. A day's pay a month for five months has been set as the amount to be asked of each em ployed person reached by the Service workers. A squad of the Community Service committeemen yesterday morning visited the various statehouse departments seeking pledges to Salem charities. The plea was made on the basis that any sums donated to the local relief organisations would be de ducted from the day's pay month amount which every state employe was being urged to gite during the winter. The men who visited the state- house were: Douglas McKay, Community Service chairman; T. A. Wlndlshar, William McGil christ, Jr., and J. T. Delaney of the finance committee, and T. M. Hicks, B. E. Sisson, V. P. Mc- Namara, and J. N. Chambers. Claim Three StatersAre Not Eligible RUGENE, Ore., Nov. 17 (AP) Reports circulated here tonight said charges of Ineligibility against Bill Bvinrton. Rer Rust and Buck Hammer, Oregon State college football palyers. would be made public here tomorrow. The charges, it was indicated, would say each of the men had played varsity football at Oregon Rtt In 19f lift 1A University of Oregon officials said they knew nothin of the charges and have nothing to do with them. CORVALLIS. Ore.. Nov. 17 (A P) Ineligibility ' charges against Reg Rust, Bill Bylngton and Buck Hammer, Oregon State football players, are futterly rid iculous, Coach Paul J. Schissler said tonight. This will be the last year of competition for the men bat so far as I know there Is nothing in the record making them ineligible." The players all denied the charges. CHOIR TO MAKE BOW The . new university choir -t Willamette "university, will make its - initial " appearance - today at Chapel time before the student body. Professor Cameron Marshall has organized the group ; of ? CO mixed voices this year as a new venture' Slightly more than-half of the choir -are women. -: GHARTY LOCAL S L01FI1 IS REORGANIZED Full Control of Mutual is Again In Local Hands; Directors Chosen Van Winkle and Clements Added to Board; Will Resume old Home The reorganization of the Mu tual Savings and Loan association was practically accomplished yes terday when the Portland mem bers of the board who were rep resenting the Prudential Baneor- poratlon resigned and the lull control of the savings and loan association was vested In the hands of Salem directors. Hon. I. H. Van Winkle, state attorney zeneral. and Dr. L. O. Clements Were elected as directors. Other focal directors are T. M. Hicks. E. M. Page and A. A. Lee. The offices of the association will be moved today from the Pat- ton building on State street back to the former quarters on South Liberty street In the Steeves building. A. A. Lee continues as secretary-manager. The severance of connection wltn the Prudential Bancorpora- tion followed the order of the corporation commissioner when Portland Savings and Loan asso ciations controlled by the Pru dential passed into his hands for management. The Salem company and the Eugene company which had been acquired by Portland in terests were turned back to oper ate Independently. The reorganization of the Mu tual company here was effected as soon as the resignations of the Portlanders was received. There were four of them on the board Two of the nlaees have been filled the board f,Te ctlTe mem oers, wnicn is requirea oy us oy laws. Two more will probably be added in a few days bringing the number to seven. Important Issue Will Be Settled One of. the first questions to be decided will be whether to con tinue the company as a 'guaran tee company with reserve fund stock or to make it a mutual company. The company operated for many years as a strictly mu tual company, but in 1930 it was changed to a reserve fund com pany. Supervisor Callahan of the (Turn to page 2, col. 1) ON ROAD OFFERED A gleam of hope Is offered the unemployed men of Marlon and Polk couties In the announce ment made yesterday by J. M. Devers, attorney for the state highway commission, that approx imately 70 per cent of the 11,- 000,000 to be expended by the commission for relief road work will go Into hand labor. Of the 798 men from the two counties who have registered at the V. 8. employment bureau here, only a few more than 100 hare been given any work, according to Agent Sim Phillips. Devers estimated that more than 20,000 men would receive part time work under the relief program. This estimate does not Include a large number of men who will be employed in road construction work In Multnomah county. The rainy weather has - been hindering th work of the SO men now on shift on the Pacific high way south of here and on the highway west of Rlckreall. A number of the men have taken ill from exposure. One man yester day had to quit his work before noon on this account. Registration at the employment bureau yesterday fell to 18 men. I Th majority of the registrants hare been married men, the single men apparently believing it nse- I to apply for work, according to pniuips, Ppinp 7 Wpavv xvZilil aiJ cavy So Far in Month Records Reveal his nonor, jnpiter piuvius, a second month Is wielding his ham mer mightily to ring the rain rec ord gong. Although IS days re main In November, rainfall for the month so far has amounted to S.2S Inches, just 1.21 Inches under the normal average for the month over a 25-year .period. Precipitation yesterday, accord ing to the official ..weather obser ver, was O.S inehes. The heaviest rainfall so far this month was 1.- 11 Inches, on November. 8, ' COMMITTEE MEETS I" 1 executive committee s of Community Service will, hold meeting during the noon hour to day to conduct routine ' business (concerned with the dispensing of funds, v ' - . ,. ... 1 WK GlowwwMFffi Magazine Helps ihPromot ion Westerner Depicts Story of Empire Glowingly . Prominent Names are Used to Build up Confidence Editor's Not! This la th third of a. series of artdes Th Statesman la run ning- on tn iiimpir Holding- company. It object beln to Inform th nnMtn of th unscrupulous method employed cent citizens from farther encroach- I uj tun cgmnuiT ana to trotMt ibmi. ment ana loss at th hiehda of such ny-ny-nignt -institution. By SHELDON F. SACKETT ONE hundred thousand dollars In actual money having been yaau ibio luv umpire xiuiu- ing company, according to its officers' sworn statements, and modest and prudent" salaries having been contracted for, Ore gon's great insurance holding company was nearly ready by Jan uary 1, 1931, to offer citizens of the state an "opportunity to get In on the ground floor of this extraordinary concern. Mr. Keller was a sales counsel lor of no small ability and short experience as federal court records and other exhibits now reveal. The first thing needed was a top- notch prospectus with which to convince Oregon citizens that the great and near-great of the state were guiding the destinies of the Empire company. Large outlays were immediate ly made by the Empire Holding company for stationery and sup plies, the bulk of this expense go ing for promotion material. Up to July 31, 1931, 18,204 had been expended on stationery and sup plies and printers were demand ing more money so shares of bank stock traded in for the Em pire's securities were pledged with printers as security. June 19, 1931, the Empire manage ment made a new printing ar rangement, agreeing to "give printing jobs to the General Lithographing and Engraving Co., on a competitive basis. The latter concern subscribed for 320,000 worth of stock and agreed to ?9? P.TTf-h111?? $10,000 in stock payment. There after printing donee was to be 75 per cent paid for in cash and 25 per cent applied as a stock payment. Keller's prize Idea was the issu ance of The Westerner. This Im posing monthly magazine was to carry the "story of empire" in general and the Empire Holding company in particular. To the Westerner were to be fed financial stories, outdoor stories, travel stories whatever would cloak the real purpose of the magazine. which was obviously the promo tion of the Empire Holding com pany. The Westerner worked. Only a fortnight ago a prominent news paper editor in Portland was going over the magazine carefully, at Judge Coshow's request, suggest ing Improvements to be made in tttm ".rao BMtini nKlitinn. Of course there were technical 7 V? wT. ht .7h 15! YruZL inUrUt ti ?.T?tJlJltwS?at.? XI MUhV Tnn7nv the Western Publishing company which "owned" the Westerner was incorporated in Utah and was nev- OrgoTNhX.theTo published In Portland, and Kel- ler's men even went so far as to tihiFSJZS Whorpo?: a -v a avj- hi 1 last summer he halted it sum- II l n-nmfna riavl aa t n av ra,r .-. wacaraA, t i!tui rm of the "assets" of the Empire Holdin company. The toUl .of this "asset" July II. 1IS1. is hit .i. .n m onnRtatinir at "advances" made to the Western- er for printing and for services frm March . 19S1. to JulV 21. Aflanp9 ranee from 12.50 to $5000. In the list of so-called "assets" . v.i.. A wm- plre Holding company will con- posed city tax: and If ot,e is as m at the tailed meetlnc Deeein- turned to agree on the split of . r a . i ti.,i. Tiiaitna mniiuei. - oer o, V vxm-, ti( 117 iimn will annnar. Just how the Empire Holding company Ted here by the company expected or expects to liquidate ttn and the city e0"1"!! ITr. r,. led for raising some $5000, with a Western Publishing company not Ucensed to do business in this state, and apparently it has no assessable capital stock or tax- able surplus. Its assets appear to be some typewriters, copy paper, back copies or tne west - erner and the cigar and cigarette asnes wnicn accumulate arounu an ordinary publishing office. It is .ruiu utis tourcs 111 I. IU r pire Holding company share holders may look for the repay ment of their $18,177 "asset with the Western Publishing com pany. If the officers of the Empire Holding company were deficient in business perspective, they were snnerblv endowed for the issu aneo of prospectuses. The prin clpal printed publication showing the fntnra of the Emnlra was one entitled "Letters." r-; - The book was appropriately covered. The paper was : heavy (Turn tc' page 10, col. 1). A ctual Money Paid Company' Was $100,000 They Said in Statement " Officers and directors of Empire Holding company who swore they individually paid 920,000 in money but whose total sab script ions were S8000 la cash. Reading from left to right, top row to bottom, the men, their, positions and their annual eajar. lea are: Judge O. P. Coshow, president, arana. f""Jy H. Stockman, Ceieral coun sel, 975O0. I. N. Fetty, general manager, 910,000. W. R. Adams, vice-president, treasurer, 910,000. Frank Feller, Jr., sales counsel, lor, 91O.000. Aggregate of "modeet and pru dent' annual salaries paid to officers, 93,000 for running company which never sold single fire, accident, casualty, life or title Insurance policy. 'S OFFER WITH I TVi a Xa(ft TclanfiAnA anil Tift-rnh mmnm, has decided to td with the other utIMUes negoUaUons with the city of SalemoncernIng proposed -P- cial Uxes on ntillUes operating In , ti.i .a .nnvnnM . 1 . 1' . - w t0 u tn pUee of V"J Tt Ji "1 J " JTfll hV NT;VhV;ompran7ounres it U new franchlso and will not taae "i'-yS i uirsvuh 11 Ai,uiaO( I consiaeration 01 me uvuou 01 the Ucense fees will be taken up poniana wnre me Bfu ces of the electric company ana gas company are located and oi Tislonal offices of the telephone I company and the telegraph com- panies. IBS Wicr wmir., aiso oe represeniea m iierences. um.ncB ww I . rw iiutl.. will a aeavor w urw n l action wltn rexerenee to me vrv . . ... . , V.I.. . .A I in priwi wu. " v ' M tVoii tn the .Ll'tMsa d! nTI . T and o the i gas, electric and I mepnone compare. 1 rj-TJ IfierrOn IS illQ i j y. Q (jtanU. JUry, Waives Hearing J. CHerroa, charged, with in voluntary manslaughter xouow ina the death of Miss Loretta I Wilson of Stayton, who was, in- j jured - Armistice day In A ear I driven by " Herron, waived vre- - 1 Mnlnarr hearinr la - justice conn - 1 Tuesday and was bound over to I the 'grand Jury. - . I Herron had . been neiu in me I county Jan because of -failure xo I raise $2000 ball, but Saturday no secured the ban requirea ana 'was teleased. ,-" .f -1 ' ""I r - ' vo-o; I UAL Ji V- - v-- mi FIRM t " 7 FACULTY WILL HOT RECEIVE WAGE CUT The Willamette university fac ulty will not-receive a cut In sal aries, it was decided at a meeting of the executive board Tuesday at which time the consideration of a new librarian was also given thought. 1 Dr. Carl G. Doney expressed the opinion that any salary cut for the faculty would likely bring an impairment of morale. New build ings are absolutely out of the question now, but the instructors are really more important. Dr. P. G. Franklin, present li brarian, Is failing in health due to an automobile accident, and asked President Doney last sum mer if he could be relieved of part of his duties. Dr. Franklin will probably be ret&lned as an assist ant librarian, being relieved of the-heavier duties. No change Is likely before January or February. President Doney lauded the work done by Dr. Franklin here. GANDHI WILL STAY LONDON. Nov. 17 (AP) The Mahatma M. K. Gandhi, heartened by a talk with Prime Minister MacDonald. today agreed to remain until the round tame conference ended. if' J Symphony Orchestra to Present Concert Tonight the Tonight at 8:15 o'clock first program of the year for the Salem Symphony orchestra will be presented In the Armory. Prof. R. W. Hans Selts is director and is presenting 5 5. local people. Variety (narks ; the program numbers. The soft beauty, of Sehnhert. the challenging notes of selections from the opera "Tann - . a . , a haussur. ana aeugnirui descrip tive numbers which closely ap proach folk stories in music, will all make for a variety in the pro gram which should have some thing to. offer each person in the audienco. - - . Following the program there will be a reception for the audi ence and Miss Barbara Thorne, guest artist, and orchestra mem bers sponsored by the board mem bers of the symphony organlxa- OFFENSE slum Smashing Attack Launched Against General Mah en. Nonni Front; Force b Said Demoralized Crisis Faced at Geneva as Indication Seen United States Relaxing Stand on Evacuation TOKYO, Nov. 18 (Wed nesday) (AP) Manchuria forces of General Mah Ca Sbaa were completely demoral ised today by the suddea aa slanght of a Japanese offcev slve, said a Harbla dispatch f the Ren go News agency. (By the Associated Press) Three factors put a brake y- terday on the attempts by .fee League of Nations to make peace between China and Japan. Fear was expressed in Parts that if the League fails to up hold Japan's demand that China recognize the validity of existing treaties, the precedent might af fect agitation against the treaty of Versailles. In addition, there were Indica tions that the United States was relaxing its firm stand for Jap-, anese evacuation of Manchuria A and that Russia might not remain aloof if the League fails to halt the Japanese advance. In Tokyo military authorities pressed the cabinet for addition al reinforcements for Mancknr ian service. General Mah Chan-Shan. Chi nese commander, turned down Japan's peace proposals and sec forth --eonditions of his . Meanwhile he held to his posi tion in the Nonni area. Minor activity was reported from the field. Snow fell alone the Nonni, where .the two maia forces of Chinese and Japanese are entrenched, and the troopa suffered from bitter winter wea ther. Tientsin learned of renewed kmVI.. Jk . uuiuuiug auu recunuouerros ac tivity In the Chinese eastern rail, way area on the part of Japanese. (Copyright, 1931, by the Associ ated Press) MUKDEN, Nov. 18 (Wed nesday) (AP) Japanese bead quarters announced the opeainsT today of a Smashing Japanese of fensive on the Nonni front la jaancnuria. as The entire Japanese force the Nonni river area was being employed in a general offensive against Chinese troops of General Mah Chan-Shan, it was en ounced. General Shlgeru Honjo, com mander of Japanese forces la Manchuria, made the announce ment. Portion of Hood Loop is Blocked Officials Learn Snow has fallen at Government Camp, on the Monnt Hood Loop highway, to a depth of three feet, and the road is blocked between, the junction with the Wapinltia' cutoff and Parkdale, state high way officials anounced Tuesdar. The officials said It was not likely that this section of the Mount Hood highway would be kept open during the entire win ter. Traffic Is still going through the Wapinltia cutoff, officials de clared. The slide on the Oregon Coast highway near Barriew was cleared today, and traffic has been resum ed. O . tlon. Thls will be informal and each person present is invited to meet the orchestra members. Miss Thorne, director prof. Selts. - There will also be a sapper party given py the exeentivo Lboard in compliment to the e chestra members folowing the re ception. X 1 . The performance of the ore; . a m a. . a4.v a - hea- tra tonight will be watched wtta more than usual Interest by a largo group of Salem people, namely, the largo number, of. sus taining members and membership holders:, who '; are.- behind the growth of the orchestra and who are seeking to make the- Srmnh- ony a permanent thing in the ci vic life of Salem. ; f j A list to . date of this grout of sustaining members and satia - (Turn to page I, coL' J)