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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Nov. 24, 1931)
CIRCULATION THE WEATHER Fair today and Wednes day, freezing temperature at night; Max. Temp. Monday 48, Blin. 21, river 6.6 feet, north wind, clear. Average Distribation October, '31 Net paid, daily. Sunday 6714 MX3CBZB A. X. 0. EIGHTY-FIRST YEAR Salem, Oregon, Tuesday Moralng, November 24, 1931 No. 207 1 AH M(P1R' EMPME 10) HyP Ifir TQBAY Japanese Troops Advancing Southward; Chiang Said Backing Manchuria New Peace Proposal Framed In Paris, but Hope of Acceptance Slight (By the Associated Press) i). Threat ot "real war" In Man churia In event President Chiang Kai-Shek of China combines his forces with the Manchurlan troops ot Chang Hsueh-Llang, as Indicated in reports, came from Tokyo today. Pleping dispatch to the Lon don Daily Mail said Japanese troops In Manchuria were moring southward toward Chlnchow with a Tiew to crashing all military and political hostility to Japan. A new proposal to deal with the Manchaiian conflict was evolved yesterday in Paris. It contained only a vague pro vision for the withdrawal of Jap anese troops, and so was expect ed to prore unsatisfactory to Chi na. Bse Reaffirms Chines Stand Dr. Alfred Sze, China's spokes nan, telecranhed the proposal to his government after reaffirming to Arlstide Briand, council chair man, China's demand for prompt vacuation. Tha Tokyo government in structed Its Washington ambassa dor to reassure the United States that Japan had not violated the nine-power treaty, the Briand Xallorr nact or the covenant of the Leirne of Nations. The ambassador had informed Tokyo the United States wag evl deneing concern about Japanese military activity in the Tsitslhar region. Concentration at Chlnchow Alarms Tokyo showed renewed appre hension about reports ot heavy Chinese troop concentration at Chlnchow. General Man Chan-Shan, Chi nese commander who was driven out of Tsitslhar, turned up at Ilailun. He was reported still to have 15,000 soldiers. Dr. VI-Kylun Wellington Koo, who holds an honorary degree of doctor of laws from Tale univer sity, became China's foreign min ister. He declared his govern ment would not approve any sug Slater Slaying Will Be First Charge for Collie; Healey Held Confessed Killer is Turned Over to Officials Of San Bernardino County; Asserted Accomplice now Arrested irae 1" OS ANGELES, Nov. 23 (AP) Back to the edge of the JL desert on which the bones of Dale Slater, youthful car penter, were found, Gilbert P. Collie, 51 year old blacksmith, confessed slayer of Slater and George Walker, laborer, will be taken for a murder trial, detectives said tonight. Collie was turned over to San Bernardino authorities Qfor return there on the theory that the Slater killing offers a more complete case. Detectives pointed out that In the killing of Walker In Orange county Thursday night. Collie claimed he acted In the heat of a quarrel, but confessed that he at tacked Slater while the latter was sleeping and clubbed him to death. Both -Slater and Walker were robbery victims. District Attorney Stanley Mussell of San Bernardino county came here withr Sheriff B. T. Shay and Dep uty Ed Farley ot San Eernardino county. Collie, who has been question ed about various other unsolved killings, was confronted In the Jail by Thomas Healey, who Col lie had named as his companion in multiple homicide, and detec tives restrained them from a physical encounter. STILL IK SWAY Meachem Shows 14 Degrees Beiow; Unharvested Lettuce Damaged PORTLAND, Ore., Nov. 23. (AP) Freezing temperatures gripped Oregon Sunday night and today and were forecast again for today. La Grande reported a minimum temperature of nine degrees above zero Sunday morning, the coldest November day experienced there since 1918 when the mercury tum bled to eight degrees above. Reports received at La Grande from Meacham, Ore., said ther mometers there registered 14 de grees below zero Sunday morning. Pendleton reported that Sunday night was the coldest of the sea son at 15 degrees above zero. Nearby mountain districts report ed below-zero weather. A temperature of 19 above at The Dalles, the coldest weather in more than a year, was said to have damaged a small quantity of unharvested lettuce. Eugene reported 20 degrees above this morning, Ashland 19 and Portland 30. STORES WILL HOLD m y Display of Christmas .Goods Will be Launched That Night, Announced 1 WIDTH TO BE TALKED FRIDAY cunixiD Each chamber of commerce be tween Salem and Oregon City will restlon for Manchurian peace that , v..- KnvBmhpr 27 at did not provide for early evacua- Woodblirn where the matter of a tlon of Japanese troops. 30-foot highway between the two cities will be given thorough dis cussion. The calling of the meet ing was decided upon late yester day at a meeting of local cnamoer of commerce members. Dr. Geraia B. Smith, president of the Wood- burn chamber of commerce, will nreside at the gathering. Invitations to tne meeting. win be sent out from Salem, jsacn aVmm.Vaw a jmm&rAA will ha s . V. - . . m I UliU VI vs"vv . ... BOSTON. NOV. Z3 tAfJ ine 1 , . .aal,.Hnn and tr. entire family of William F. Good- .M Mm rMinni trip nnen dis- ale, Boston Latin school teaeher. CU8sIon on the necessity of widen whlch included himself, his wire . th Eagt glde paclfic highway ana weir mrw uuumu, I tn So feet. found dead today in tneir ixr- It , sTBcted that resolutions E TIKES FIVE LIKES Chester home from accidental monoxide aas poisoning. The bodies of Goodale and his wife a former teacher, were found In the bathroom. A hot water heater which was still hurninr. although the deaths ot the family were believed to have occurred last Friday, was consid ered bv Medical Examiner Tim othy J. Leary to have been the source of the gas. Indications- were that Mrs. Goodala waff about to take a bath ;when she was overcome. Police 'believed her husband went to her assistance, and he In turn suc cumbed. Two of the children. Varr. ared one and a half years, and Anna, aged four, were found 1b their beds. The third child, William, aged three months, died in his carri age on the first floor. favorinr such widening will be nresented to the delegates ana acted favorably upon, inese reso lutions will then go to the state highway commission. Dr. Smith is exnected to name the place for the meeting In Woodburn by to night. In attendance at tne conrerence hr Yesterday were J N. Cham bers, T. M. Hicks, W. 1 rnniips, Horr, v. Grain and sneiaon . Sackett. PAPER PROFITS ARE TRACED TO TWO SENATORS i- 1 Cash Book Reveals Vacuity of Empire Company's Hopes for Launching 'Vast Operations Purchases of Sugar Stocks By Davis and Watson Now Uncovered Cash Outlay of Each Month About Equal To its Receipts Latter Says Nothing Paid and Nothing Made on Empty Transaction Persons who Could ill Afford Loss Among Firm's Victims WASHINGTON, Nov. 22 (AP) The searchlight of senatorial in quiry was turned today on the 1928 stock investments of two of the senate'a own members, Watson Of Indiana and Davis of Pennsyl vania, disclosing' evidence that both had made "paper profits" on sugar stock they purchased on credit. At the time of the purchases, Davis was secretary of labor In Coolidge's cabinet and Watson was a candidate against Hoover for the presidential nomination. The evi dence did not show that either ac tually turned his paper profit Into cash, both taking securities In stead. It was testified that in 1929 the sugar Interests, . from whom the stock was acquired, became ac tive in advocating a higher sugar tariff. Watson, who is the republican senate leader, said in a statement tonight that his transaction was purely a private matter, that neith er the non-lnterest-beanng note he gave In payment nor the securi ties he received as a prom haa any present value, and that the score remained "nothing to noth ing." Senator Davis was absent from Washington. The testimony was given before the senate lobby committee, which was called to investigate a report of a $100,000 payment to a sena tor by lobbyists for a sugar tariff boost. By SHELDON F. SACKETT THE cash book that hard hearted debunker of so many business ventures tells a re vealing story of which scarcely needs words to portray the shift ing and impossible foundation on which the Empire Holding corpor ation was to try to build 1U "vast" operations In Oregon. In the eight months of Decem ber. 1930. to July. 1931, lnclu- !. tha eomnanv took Into its treasury In cash $129,895. It ex pended 8121.840! Thus It had available for the $150,000 need ed for the first of its five compan ion tha nm of 8KB. it neeoea 1149.94B to start one concern! iCTn the nunv $55 would have been swallowed up long before it reached the subsidiary companies for bills and notes payable on July II. 1931. exceeded $17,000 and officers' salaries at that time, due and unpaid, aggregated 121,000 Monthly Record Telia tha Story One needs only to compare the month to month figures of m come and outgo in the Empire Holding corporation to see vjvid' !- that the company was eon eetved In financial Iniquity and born in sin. The following table hnt tha month bv month re ceipts and disbursements: Month Cash In Cash Out Ushering in the Christmas buy ing season, Salem stores will hold "open house" on Friday night of this week. Flans for the event which is sponsored by the Salem Ad club, were perfected at a meet ing of the committee in charge last night. The stores will be open from 7:30 to 9 for display of Christmas merchandise. There will be no selling, however, and the public will have an opportunity to visit the stores and inspect their Christmas stocks without being pressed to buy. Plans include the official ar rival of Santa, 1931. He will come in 20 th century style In a spank ing new automobile with treats for kiddies. He will parade the streets and give the youngsters a sight of his red coat and long white whiskers. Fresh from the North Pole, he comes to launch the Christmas shopping season for Salem. As an additional diversion a special stunt has been planned which will be releasing several lire turkeys, to become the property of their captors. These will be turned loose at an hour and place to be named later and will give abundant entertainment to the crowd as well as a big dinner to the persons lucky enough to cap ture them. RAIDERS GET BIG OF Daoawber 10 January 'II February March June , ; July .1 800.00 17.89J.00 . 1MC9.00 2S.14S.00 . 19.97i.00 . 33.745.00 ll.807.gu CARGO LIQUOR No Question Left Here But That Empire Was 'Promising Company TlHERE m no substitute for ufcty. The first require stent el s flood investment is thet it sefeouerdy your The stock of the Empire Holding Corporation, formed te rgencM and control five of the most stable and profitable (net of bustness mortgage loans, ees 'welty Insurance, fire insurance. Efe insurance, title insurance offer you safety plus the opportunity 'of splendid returns and rapidly growing value. Without obligation to you we wil gladly give ye eomplete particulars about this new investment op portunity if you wil phono or write u. EVIDENG GRAND JURY TO E CARSON STATES Goldstein to aid District Attorney in Handling Case, Announced , Presentation of Evidence Starts This Morning; Mott to Furnish 1EMPME Start Road-Work For Dallas Men DALLAS, Ore.. Nov. S3 A crew of 25 men went to work kfonday morning on the roads near Dallas as part of the road work for unemployment relief. The men were recruited from Dal las and vicinity. NEW YORK, Nov. 23 (AP) After firing a round of shots over the heads of CO men engaged in unloading 6,000 cases of liquor from the oil tanker Raritan Sun today, federal prohibition agents closed in, seized the liquor, con fiscated the tanker and arrested the men without resistance. Customs officials valued the li quor at $360,000 and the vessel at $200,000. Eight trucks also seized were valued at $60,000. . Charles R. Inni maritime ex ecutive of the Sun Oil company, Philadelphia, said the seizure of his company's tanker was the "re sult of cooperation between the federal government and the com pany." He added that the owners of the vessel were working wiin the government to prevent mem bers of the crews from transport ing liquor. George M. Brewer, solicitor 01 the port said the Sun Oil company obviously was without guilt, and had shown every desire to co operate and undoubtedly would seek release of the vessel. 685.00 3,993.00 19.C91.00 Jl.77l.00 31,048.00 33.190.00 17.48S.OO 18,118.00 Where did this money come from? First it was funds applied on stock subscriptions, where ac cording to Empire's advertise ments of last August "Permanent Safety Plus Opportunity" was available. The total of cash on subscrip tions totalled $72,138. Then came moneys of $11,635 collected over the eight months' period on notes receivable. These were the prom ises made by "investors" who continued to have faith in Empire and continued to add to their or iginal subscriptions substantial payments on their stock notes. Of the remaining items of cash received, the major one is $32,489 taken in from sales of stocks and bonds and mortgages Items tak en from widows, trust funds, from unwitting "Investors" and men of Holding Corporation TtMMMAt wil no. roinAHO- wi ttumONS Macon tin 3 Above Is facsimile of back page of Westerner for August, 1931. This was the elaborate magazine which cleverly promoted the greatest stock selling scheme In Oregon tn years! At the tune this aaver tteement was Issued Empire had $55 In rash in Its treasury, owed bills of over $8000, notes of $9000 and had contracted and unpaid salaries to its officers of $21,0001 It had expended all bat $55 of the $126,895 In cash it had received! LETTER INQUIRING ABOUT KELLER February 13, 1931 Denver Better Business Bureau Re: Frank Keller, Jr. Gentlement A day or two aaro I wired you asking that you make an 4 aAMnvA i-kTinnrrrartli nf TiYanlr TTpllpr. Jl.- from I 1 9 1 f0 J Aa. Aik mWnrnm MWM curity. Almost as fast as tnese montns m jail in your Cliy in on a Beuwcuue lur uwus stocks, bond , mortgages came in fve mails in furtherance of a scheme to defraud. This was in connection with the Farmers Security Mortgage Com pany, Two Slayers get Life Antelope Herds Starve Reds Allowed to Leave Ransom Heads Company THIRD 15 TEARS EUGENE. Ore., Nov. 23 (AP) -Miguel Marrero and Chauneey Onvmon were sentenced today to lite Imprisonment for the slaying Conference Upon Relief Program Is Slated Today ?!RS?S& train. .AAV.. V. rnmmn-n. I . TTrTV RtLlTPT. WHO MCOUl' it. c.ri .nmniltiM for f nrther I nanied Marrero and Ouymon, put "J . . I - . wsa un. consideration or tne couniye n-1 wno cwn -- --- employment problem, a postponed 1 tencea 10 jo yer u - conference of ail aepanmem 1 was imeu xw range now. contain enough hay for the pronghorns. heads at the courthouse will be held this ' morning. Because a number of the officials could not attend yesterday, the meeting was nut off until today. VOne matter expected to be dis cussed la that of county employes' rionatlnr funds-to relief work. De partment heads who met inform a 11 v vester day intimated It would not be their plan to use compul-! alon on the employes. I Keaeons ' given for . this opinion were the . law covering the matter and the individual circumstances 01 oe Several employes. RANGE GRASS KlTJKD PORTLAND, Ore., Nov. 21 Am Aatelone herds of eastern nrecon face a severe uesert win ter with Insufficient forage, Stan ley Q. Jewett, leader ot predatory animal eontroi ror me unueu States bureau of biological sur- ?ev. said today. Jewett has last completed a three-week survey of the antelose. ranges in eastern Lake county. Jewett said a long dry summer had killed much desert vegetation and only protected areas of the wild Polanski Given $2085 Damages Against Hummel The second circuit court Jury to weigh the damage action of R. F. Polanski against Dr. H. O. Hum mel vesterdar brought In a ver dict in favor of the plaintiff for the sum ot $2085. In this suit, Polanski sought soma $55,500 la damages for alleged malpractice on the part of Dr. Hummel. In the first trial a verdict of $7500 was awarded the plaintiff. The elalntlff alleged that Dr. Hummel performed certain surgi cal work that was unauthorized, much of which would have been unnecessary if proper medical at tention had been given. The de fense contended that the action taken was necessary to save the life of the plaintiff. they were sold Typical Case Noted Of Sales Methods Yesterday there came to ' at tentlon a typical case of Empire salesmen's methods. First, he approached a representative of the fire Insurance company rep resented by Mr. Hagerty, presl dent of the Empire Casualty com pany. Falling to secure tne agent's subscription he blandly Inquired if he knew of any "wid ows who have recently received funds or of any insurance benefi ciaries' whom he could interest in Empire stock! (Turn to page 2, coL 1) Cordially yours, ROBERT U. MOUNT, Manager. Late Sports mn moom, TULSA, OkUu, Nov. 23. (AP) After a slow start. Jack Dempsey, former world heavy weight champion, wound wp a four-round bout tonight with Babe Hunt, Ponca City, Okhv, fat whirlwind style to gala a newspaper decision. Dempsey weighed 193, Hunt 197. biiM 1 WILL GO TO RUSSIA PORTLAND, Ore- Nov. 23 (AP) Nine alien communists, now under deportation orders. are to be allowed to go to Russia sat lb Affi msm avnansa 1 Van- ss a?aa vnu aycusvt aw a waa I V fm: hI5ruon "iBUiiaers invite Mil WlUUUUVm WflJ. Bonham's order, received from the department of labor, said the aliens must be out of the United States by December IS. They will leave under bond. Tillers of Soil To Session Here OAKLAND, CaL, Nov. 23. (AP) Shooting over a right un dercut that dropped his opponent for the full count. Max Baer, Oak land heavyweight, evened up an old score with Les Kennedy when he knocked out the Long Beaeh boy In the third round of their scheduled 10-round bout here to night the answer Setter Business Bureau lacoimiTio MDt-M V. a Nial Rwk BuUUc Dearer, Coio. fmbnnrr 16, lSl Scrttaai Bttr Mmm Sbtm tit Oraftm Solldlaj rwtlaaS, One tlMII rt vny tony tkt Maid Ml lmU CnpS f m ihm lallal. Sa tt far mm tla U m Ud, m It mm Uwt ttara la aaUdaf awUafcla. " laav lmfMattas ragartla kU raaatS Sa wwrt. fUa Ma a aU trmt mm, a tk feaal raat OftlM laaMaWt i If r a Wa Mt raa savaaa llr la iiiiiUw ! m7 ltmuM laftM tor. MrLl. BlbtaiS, AUmt. U1 laar ta aback as taa latter far yaa it aaalUa. atUly raara, J Dstnss ifous, ne. - SUCCEEDS W. B- AYER PORTLAND, Ore,. Nov. 23 (AP) The Eastern & Western Lumber company announced to day Frank H. Ransom had been named president of the company to succeed W. B. Ayer, who re signed recently after serving-as nresldent for 36 years. : The announcement said K. H. Koehler was elected vice presi dent a&d manager and Charles B. Duffy was chosen secretary-treas urer. Farmers, dairymen and allied workers on the soli will be Invited to attend the December IS forum meeting of Salem chapter ot the Oregon Buildlnr congress, mem bers of the board of directors de cided at the meeting last night la the United States national bank building. The speaker for the ev ening will be an authority on farm buildings. The secretary of, the chapter was instructed to. Issue an Invita tion for this meeting to all granges In the Salem vicinity. BIRMINGHAM, Ala., Nov. 23. (AP) W, L. -Young- Strib- linc Macon, Gsw heavyweight. etpolnted Pietro Corri, of New , 'York, la their 10-rotind hoot here tonight. It was a unaaJ- bmu newspaper decision. Each weighed 189 pounds. SAN FRANCISCO, Nov. 21. (AP) Contract for an annual Thanksgiving day football game between St. Mary's and the Uni versity ot Oregon, to be played in San Francisco un to and including the year -1937, was signed here today by representatives or . tne two schools. , BmjO - IBS:! BSTsajo: He H.mtVA Suspicions of the record ot Frank J. Keller, Jr., the Better Business Buream la ForUaaa m jreoroary, ivs, wrote wo . T v Bureaa of Denver, Colorado, to ascertain u n was ru J. Keller. Jr. had beew fined and had served fcanj' months tn eavthe charge of wring the United States go t mails to de fnuadl Above te the reply to Mr. Mourn' letter. An immediate, detailed and complete grand Jury investiga tion of all the operations of th Empire Holding corporation will be begun here this morning at If o'clock. District Attorney John H. Carson announced late yester day. Carson's decision to probe the affairs of the corporation came immediately after a conference 4 held with James W. Mott, state corporation commissioner, who went into conference with Carson immediately upon his return yes terday from a trip to Eugene. Mott announced after the con ference that he had requested Carson to probe the affairs of the Empire Holding corporation in full detail. Mott said his de partment would render every as sistance and that he would name Barnett H. Goldstein, Portland attorney, as a special assistant to act in the case. Goldstein has been special prosecutor of the. corporation commissioner in re cent grand Jury investigations and trials In Portland. Company Officials WIU be Notified Carson said he would obtain information on file with the cor poration commission for the con duct of bis investigation. He said he would notify officials ot the Empire Holding corporation that the probe was on and would permit them to appear before the Jury if they expressed such a desire. Officers of the corporation are Judge O. P. Coshow, president; I. H. Fetty, vice-president and general manager; Wilson R. Adams, vice-president and treas urer; J. H. Stockman, counsel. Frank J. Keller, Jr., sales coun sellor for the Empire firm, will also be notified of the grand jury investigation and given opportun ity to appear If he so desires. Under the law no party against whom Indictment may be brought can be subpoenaed before a grand jury. Carson said the procedure k would follow would be to present all the evidence he can obtain regarding the organization of the' Empire Holding corporation. He then will Inform the grand jury of the laws relating to such oper ations and will leave to that body the determination on what counts, if any, the statutes of the state have been broken. Case may Require Several Days' Time The district attorney expressed the opinion that several days would be needed for the grand Jury to exam In a all the facts which Carson expects to bring before it. When a report from the grand Jury can be expected is entirely a matter of speculation. It Is charged by law to finish reports not later than January, 1932. - It has already been in session for about three weeks and has reported on about 30 cases, re turning 12 indictments. Members of the grand jury are Ed Hartley, foreman: George Z. Pontious, Arthur H. Moore, James E. Allison and Dorothy M. McDowell, all of Salem: Bertha W. Curl of Jefferson and Ella M. Stauffer of Hubbard. 'This matter is one of the hardest I have had to present la 11 years' work as district attor ney," Carson said. "I intend. however, with the assistance of Mr. Goldstein, to see that the grand jury is fully Informed of the facts and to ask that body to do its duty fn determining what course of procedure these facts demand." Reorganisation not To Affect Probe When the Empire Holding cor poration's affairs were first brought to -the attention of Cor poration Commissioner Mott ho informed The Statesman that he would ask a grand Jury investiga tion although at that time Mett felt the matter would be deferred until after the December 7 meet ing of stockholders. Mott made It very plain that he felt the grand jury Investigation was net tied ''In- with the stockholders meeting and indicated he would call for an .official probe of the company's sf fairs, irrespective ef whether It wss eventually reor ganised or not. Mott also stated that he did not Intend to desist In any par ticular from his clean-up pro gram in Oregon financial affair's irrespective of the parties in rotved. He reasserted his for (Turn to page eoL 6) Jail