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rier service. 'If yoar paper
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be delivered at once.
EIGHTY-FIRST YEAR
Salem, Oregon, Sunday Morning, December &, 1931
No. 21$
EMPIRE H'S
El BE
SETTLED SOON
Stockholders to Gather in
Portland Monday, Vote
On Reorganizing
Opposition to Officers is
Reported Widespread;
Outcome Uncertain
STATESMAN TO CARRY
SPECIAL STORY '-ABOUT
STOCKHOLDER'S MEET
Because of the wide
spread Interest locally in the
affairs of The Empire Hold
ing corporation The States
man Tuesday morning will
carry a complete tory on
the stockholders' meeting.
This gathering' will start at
3 o'clock Monday afternoon
in Portland in .the Empire's
office. Terminal Sales build
ing. The gathering is ex
pected to bring many oral
protests from stockholders
who- have been' heavy losers
In Empire's securities. A
fight for control of the cor
poration is also to be waged,
the, present officers being
opposed in their demand for
retention In office, byj Dr.
R. W. Clancy, secretary of
the company, and the only
officer who invested more
than $2000 in rash in the
concern. Clancy's personal
investment to date has been
910,000 in cash, 15,000 in
notes.
BT SHELDON F. SACKETT
Affairs of the Empire Holding
torooration will again be exhum
ed, tbig time for stockholders'
gare, 'when the special meeting
called in Portland at 3 p.m. to
morrow gets under way. Whether
the now defunct financial body
will be inspected, mourned and
laid to ft long rest or whether Dr.
R. W. Clancy or the Coshow.
Fetty, Keller, Adams and Stock
man mourners can breathe the
spark of life into the "vast" cor
poration remains a matter of
speculation.
Reports from Portland yester
dav indicated that stockholders
from all parts of the state were
coming to the meeting and that
Clancy apparently would control
a majority of the proxies. A group
of 100 Medford stockholders have
gone en masse to Clancy in his
fight to purge the company of its
xroup of officers whose aggregate
salaries annually are 4 2,500 and
from Roseburg, also an Empire
stronghold, came word Saturday
that shareholders there would op
pose the continuance of the Em
(Turn to page 2, col. 1)
HULET CRITICAL OF
FIRM BOARD SETUP
The federal farm board has
built Its organization from the
top down instead of from the
bottom up. Too little attention
has been paid to those cooperative
organizations owned and control!
ed by producers In fact as well as
name.
These were the views expressed
bv Charles C. Hulet, master of
the Oregon state grange and chair
man of the national grange agri
cultural committee, Saturday
upon his return from Washington,
where he was called to appear oe
fore Senator McNary's agricultur
al committee.
Hulet testified that there
should be prompt Investigation by
rnzresB of the federal farm
board, and if congress moves for
the investigation It should cover
the entire scope of the board ac
tivities. Mr. and Mrs. Hulet were dele
gates from the Oregon grange at
the national grange convention In
Madison, Wisconsin,; before he
was called to Washington.
The national grange adopted, in
substance, the report Hulet pre
sented as chairman of the agri
cultural committee, and included
in the convention action a special
resolution on the marketing act,
-which urges congress, to amend at
the coming session to provide
three important features.
FRENCH RIDERS WIN
NEW YORK, Dec.; 5 (AP)
The French team of Alfred Le
tourner and Marcel Gulmbretlere
won New York's 51st aix day bi
cycle race at Madison Square
Garden tonight.
A Legacy of
Feud and Love
In the border conntry -men
settle matters of wom
en, freedom and money with
gun and fists. It was there
that Ted BadcUffe, Yale
halfback, inherited a tumul
tous legacy of fend and lore.
Read -The Gay Bandit of
the Border,' Tom Gill's ro
mance of the west, beginning
Friday, December 11, ta The
Statesman.
UT
He'll be Governor of Oregon
Monday When Meier Goes Away
V , '
. t- -
v-. :-. . w .
V . ' 4 - r
1 - - i
j v .
" s y
4 s 4
A ; .....
WILLARD
CITY BUDGET WILL
BE VOTED MONDAY
Health Appropriation Only
Moot Point, Indicated; ;
Old Amount Asked
Final adoption of the tentative
1932 city budget wlit be the most
important item before the city
council tomorrow night. Aside
from the much discussed $6000
item for health work, there is lit-
tie prospect for discussion of the
other provisions or the budget.
During the fortnight which has
followed the first and second read
ings of the budget, many local or
ganizations have passed resolu
tions asking the council to restore
the item to $8000 where It was
placed several years ago. Advo
cates of putting the health work
on the $8000 basis point out that
the cost of the service to the city
was not increased in formed years
when other departments received
substantial gains. To decrease the
item now, when otder depart
ments are being restored to the
position of two years ago would I
be unfair, tdvocates or tne neaun
unit appropriation argue.
The election of a committee on
committees In the council 18
scheduled for Monday night. Pres
ent members are Alderman Chris
J. Kowltz, W. H. Dane and V. E.
Kuhn. There was no Indication
yesterday of any concerted move
to replace these men.
Prior to the closing years of
Mayor T. A. Llvesley's administra
tion, all committees were named
by the mayor. When opposition to
Llvesley developed In the council,
sufficient strength was found by
the Insurgents to take the com
mittee naming power away from
the mayor. It is not thought that
Mayor P. M. Gregory has suffi-
cient strength to demand that the unconfirmed report from a Chi
councll restore this former pre- nese source at Peiplng that Gen
rogative of the mayor to him.
Man is Held on
Gresham Store
Burglary Count
PORTLAND, Dec. 5. (AP) A
man who give his name a George
A. Haines, 37, and who said he
was a menber of the Denver,
Colo., police force In 1919, was
arrested In a Gresham store on
charge of burglary and was lodg
ed In the county Jail here.
The arresting officers. Walter
Deardorff and Ed Johnson, Gresh
am marshal, said two men who.
with Haineii, had broken into the
store, escaped in an automobile.
Hainea refused to tell who they
were or give further information
about himself.
Prince Nicholas
Still Married;,
ir A mill fMAMf
lY O AnnUlimeni.
BUCHAREST, Rumania, Dec
(AP) The m organic mar
rlage of Prince Nicholas, brother
of King Carol and Mme. Jana Lu -
cla Deletl had not been annulled
tonlght
A renort nubllshed abroad that
th Rumanian sunreme court had
nrnmnlfati an annulment of the
marriage waa found to be incor-
rect, although a decree of annul- j delphla, defeated Robert L.ina
mnt evnected within a f ew I blom. of Seattle. 125 to 2, in 12
day
King Carol has left Bucharest! world's pocket billiard cnampion
f or a week-end hunting trip, iWp tournament tonight.
L. HARKS
Tl
;e
Data Wanted for Survey of
Navigation, Word From
Federal Engineer
Major Os!ar O. Ktr.enti, district
engineer wtr department, Port
land office has written the cham
ber of commerce here saying that
his office has been authorized to
proceed with a survey to determ-
ine the cost and advisability of
Providing a channel depth of
either six or nine feet in the Wil
lamette rlvur.
He says one of the principal
factors whl:h will be considered
In the aurvy will be the river
traffic which might develop
thereby. Representatives of the
district office will call to inter-
Tiew per sots and concerns who
snip on tne river.
"With thiH survey in Tiew. the
chamber of commerce Monday
will mall oat letters to all busi
ness houses, manufacturers and
concerns which use the waterway
for shipments. The chamber has
supplied XEajor Kuentz with
names of about 75 Individuals
and concerns that use the river.
After Ion;? effort, one survey of
the Willamette was made but the
(Turn to page 2, col. 1)
JAPAN REPORTED
TOKYO, Dec. 6 (Sunday)
(AP) A Jlengo dispatch from
Mukden today said there was an
eral Honjo, Japanese commander
in Manchuria, bad served' final
notice on Chang Hsueh-Llang to
withdraw his Chinese troops west
of Chinch ovr Immediately.
There was no confirmation of
such an ultimatum at Japanese
war office.
The Mukden dispatch said the
denosed srorernor of xTanchnria
haj Deen Wimed to withdraw hl
I troops on the ground that masa-
Ing of Chinese east of Chlnchow
signified an aggressive attitude
against the Japanese.
The dispatch appeared to have
been censored and several sen
tence. deleted, which wa taken
here a an Indication that It bad
been referred to military head
quarter for approval before It
was forwarded to Tokyo.
Gandhi Has New
Attire, Noticed
PARIS. Dec. 5. (AP)-Wear-
ing new shawl and loin cloth.
Mahatma Gandhi on his way home
U0 India after the round table con-
ference In London, arrived hers
1 today and wa cheered by a large
- 1 crowd at the railway station.
I With the mahatma was Mis
1 Madeline Slade, his disciple.
whose weaving ability waa re-
sponsible for hi new clothing.
PONZI IS WINNER
PHILADELPHIA. Dec. 5.
(AP) Andrew Ponxi, of Phila-
I innings in the night session of the
SURVEY OF
iW UHD
ULTIMATUM
FROM
IRKS ACTING
Ni FOR
REST OF YEAR
Will Become Oregon Chief
Monday Morning When
Meier Goes Away
Plans no Radical Changes
In Policy In Absence
Of Elected Leaderfs
At 7 o'clock Monday morning.
when the Cascade limited crosses
the Oregon line Into California,
Oregon will have a new governor
He will be Willard L. Marks, Al
bany lawyer and president of the
Oregon senate In the 1931 term.
For a period of four weeks he
will preside over the state's des
tinies while the present governor
makes merry with his children
and grandchildren on a holiday
vacation trip to San Francisco.
"I will adopt the view that
am holding office in lieu of Gov
ernor Meier and will thus feel
constrained to carry on his poll
cies," Senator Marka told The
Statesman last night in a special
interview. "I think it would be
Improper under the circumstan
ces to formulate any policies al
though there may be decisions re
Quired which I shall not hesitate
to give. I presume that most of
my duties during the rest of the
month will be largely routine
matters."
Will Be Here For
Any Needed Action
Marks will come to the capltol
Monday morning and will be here
each work day during the gover
nor's absence except when affairs
at the capitol do not raquire Ma
personal attention. Senator Marka
said he would expect Miss Beat
rice "Walton, Governor Meier's
secretary, to keep him Informed
at his home In Albany regarding
any matters needing his atten
tion.
Discussion at the state house
yesterday centered around the
question of Marks' position if fur
ther disputes in the state board of
control between State Treasurer
Holman and Secretary of State
Hoss should arise. Investigations
now pending may come to a head
and force Marka to take a stand
on the opposite positions these
two men customarily have taken.
Holman in the three months of
Governor Meier's absence has car
ried on as though he were the
lone remaining representative of
the -Bull Frog party at the cap
itol. Marks indicated clearly yester
day that he Intended to hire or
(Turn to page 2, col. 1)
HUE DIES I
Alderman 8. A. Hughe yester
day declared that he had attend
ed meetings of the city council
light committee every time the
body had been called together In
in denying reports earlier In the
week that Chairman F. L. Wilk
erson had been unable to assem
ble both of his committeemen at
the same time.
George W. Averett, third com
mltteemen averred be had been
excused from attending.
For the past three weeks,
Chairman WHkerson has been en
deavoring to convene his commit
tee together with officials of the
Portland General Electric to nego
tiate a new power contract for
the city. Electricity for street
lighting is being paid for at high
rates set forth in a contract mad
several years ago but now expired.
MISSED
MEETINGS
Scores Injured While Watching Fire
I
One person was killed outright
explosion blew the roof off this
v, . .,.. , . . J , - -
- -! nL'm
which caused the blast. The catastrophe occurred;. Thursday afternoon at Berkeley, Gal. Men
shown ta this picture removing victim from the scene. Many wero bailed by flaming debris.
Tusko oh the
Wagon;Vows
'NeverAgain'
PORTLAND, Dec; I. Poor
Tusko! He awoke this morninr
sadder but much wiser ele
phant, from all appearances car
ing little whether he lived or pass
ed on to the happy hunting ground
of Indiscreet pachyderms. He
seemed to be trying to recite the
age-old tow "Never again!"
Awakening after! the alamber
that followed a 1 -gallon whiskey
lag, Tusko showed ho disposition
to tosa bales of bar clarfullv
about; and even the wooden tub
that had held his elephant-size
toddy had no attraction for him.
He poked an Inquisitive trunk Into
its depths, then tossed It disgust
edly to one side. Had he the pow
er of speech, he wonld probably
hare asked for a tub of Ice water
or several dozen aspirins.
His eyes were bloodshot, his
10 tons of flesh sagged like an
Inflated balloon, his ears, which
had flapped so eagerly at the first
smell of liquor, hung like the sails
of a becalmed schooner. Nothing
could shake him from his remorse
ful stupor. It seemed evident that
he would welcome an acute case
of double pneumonia rather than
his present condition.
Even polished apples. 50 boxes
of which had been donated by a
grocery company, failed to buoy
his spirits. Yes, Tusko had a hang
over.
CAMPAIGN STARTED
Kettles on Street; Need of
Christmas Cheer Fund
Is Greatest Ever
Salvation Army Lassies were
on the street yesterday for the
first time this year, the advent
marking the start of the annual
Statesman-Salvation Army Good
Will Fund campaign for Christ
mas. Receipts for the first day
were $23.99.
The kettles will be out each
day from now on until Christmas,
and all funds placed in them will
be used to aid the needy and un
fortunate at Christmas time. In
addition to the kettles, the Army
is following the usual custom.
and asking for donations for the
fund.
Donations should be sent to
the Army headquarters or to The
Statesman office, from where
they will be turned over to Adju
tant E. Parsons, in charge here.
The goal for the Good Will
fund this year has been placed at
$1500. This is $500 less than last
year, but with the money the
Army hopes to distribute cheer
to a considerable more people
than last year.
Basket Held Oat
Over Long period
Not that the Army ia proud of
the larger number. It 1 a ease of
the number of needy Increasing,
(Turn to page 2, col. 5)
Wayne Kantola
Quits Hospital ;
Recovers Fully
Wayne Kantola,: Salem youth
who la believed to have shot him
self through the head with a re
volver last month, has been re
leased from the hospital and is
able to be about the city again
He apparently la suffering no ill
effects, other tban weakened con
dition, as a result, of his wound
according to the attending physl
clan.
The bullet from the heavy cali
bre revolver entered the youth's
right temple and emerged high
on the left side of the head. Be
cause the bullet actually pierced
the brain, the physician consid-
era his recovery a phenomenon.
Tl
'41
and one more died later, and over
hoose while a crowd stood by
COUNTY BUDGET
SESSION
OPENS
E
Powell, Keech and Jones
Official Consultants
Of County Courts
Large Crowd Equipped for
Argument Expected as
Levy Considered
The annual, painful major op-
eratlon performed upon Marlon I
county's budget will get under
way tomorrow at 10 a. m. at the
courthouse. Surgeons giegmund.
Smith and Porter being assisted
by Keith Powell, Woodburn bank
er, George Keech, Stayton can
neryman and T. B. Jones, Salem
farmer, who Saturday were des
ignated by the county court as of- I
.... .. . I
ficial consultants
Quasi-official onlookers, each
charged with seeing that the bud
get is pared down to the last bone
with every unnecessary organ
thrown into the surgery waste-
bucket, will be Henry Zorn, Cus
ter E. Ross and Louis Laehmund
These three are members of the
Marlon county tax reduction,
e q u a 1 1 zation and conservation
group appointed last summer by
Governor Julius L. Meier.
An unusually large crowd is ex
pected to be at the court room
when the surgeons bsgln their
work. Onlookers are not banned
from comments and especial at
tack and defense is expected on
!"C.mt!"8" 17J
v". Llt"J...i- " y .v. "7 I
bua transportation and the coun
ty health unit appropriation.
Place to Operate
Is Still Problem
wnue me couniy coun nu
peatedly expressed Its desire to
While the county court has re-
whack down the 19JZ budget to
the marrow, the three surgeons
yesterday were shaking doubting
aftvn cu4 w wu juo mw w a v
operation could be accomplished
without killing the patient, Sieg-
mund Smith, and Porter each
pointed out that a $10,000 to
$15,000 lntrease Impends for
Marlon county's care of the in
sane, a $24,000 increase may be
asked for high school tuition
while repeal of the market road
one-mill tax will leave the county
somewhat embarassed for road
work funds. At the same time ap
peals for work are mounting.
The budget, as adopted Mon
day, must be published and 20
days must elapse before a final
Tote 1 taken by the county court
which la the ultimate tax levying
body.
Four Horsemen
Are Beaten in
Bridge Tourney
PHILADELPHIA, Dec. 5
(AP) A -team of New Yorker
upset prediction in the National
bridge tournament tonight by
noalnr out the well known "four
horsemen" to win the National
Contract team championship, the
last event on the week's program.
The team Is composed of Com
mander Win field Liggett, Jr.,
Mrs. Elizabeth B. Banfleld, Mrs.
Norman Newman and George Un
ger. They won 46 of 76 matches.
one more than the "four horse
men," P. Hal Sims of Deal, N. J.,
Willard 8. Karn, Oswald Jacoby
and David Burnstlne, all of New
York. Four Clevelander were
third by half a. point. They were
Edward C. Wolfe, Henry P. Jae
ger, Omar Mueller and Sam Gug
genheim.
4
1 ('
80 were injured when terrific gas
watching the flremem fight the fire
ARLY MONDAY
Assessed Valuations
For County Increase
Despite Land Slump
Rumor Iverson
Slayer Caught;
Officers Deny
STLVERTON, Dec. 5 A rumor
started Thursday afternoon at
Silverton which had gained such
. v f ntti w mnrnlnr
rvct. Verging
silverton residents to Terlfiy it.
waa to the effect that the mur
derer of H. J. Iverson, who was
killed May 3 while on duty as
night patrolman at SllveTton, was
captured.
Anthorities have continued to
deny the story that there was
ftnvttalnr new for publication. It
is generally believed at Silverton,
however, that either new clues
have been discoTered or that some-
. . ... 1 1
thing in regard to old clues has
been confirmed.
Eugene Legislator Seeking
Nomination; to Oppose
Willis C. Hawley
. tt a nr
UeTeral term, a member of' the
lower house of the state leglsla-
ture. will b a candidate for
office of representative in eon-
gross from the first congresslon-
al district at the republican pri-
, . .i...!.. u... This was
W
'
Howara aeciarea
that he re-
careful sur-
1 '
ej ui m iUb. -
and had received consiaeraDie en-
couragement. He indicated that
. , ,1 .(.t
ne wouia usuo iu Butiu
within tn next two or mree
weeks. During his legislative ser
vice. Howard was a member or
iL wam A and hi Cher va ATY1 Ttt 1 fr-
1U" a.,-,, -j.
lee ana was uuuuieu
omer imponui uumiumw
menis. Me aiwais uu o m
ardent advocate of Improved high-
ways.
Willis C. Hawley of Salem, re-
publican incumbent, also has an-
nounced that he will seek reelec
tion. Hawley has served as
member of the lower house of
congress for many years, and has
been honored with some of the
most cherished committee ap
pointments. Among these import
ant assignments was the chair
manship of the powerful ways
and means committee.
Other persons prominently
mentioned in connection with the
congressional race In the first dls-
trict are C. C Hulet, master of the
Oregon state grange; James W.
Mott, state corporation commis-
sloner; ex-Governor worniaa 01
Astoria; Edward Bailey of June-
tlon City and W. A. Deliell of Sa-
Iftm. RaIIav and Helzell are oem-
ncTKtn. Hnlet. in a statement la-
HOWARD CANDIDATE
FOR CONGRESSMAN
sued here recently.sald he had from the United States naval aca
been urged to enter the contest, demy at Annapolis last June. He
and that he probably would make
some definite statement before
the first of next year.
Hotel Men Vote
For Referendum
S t-i y .
Un fTOniDlZlOn
pnpTT.iMn rr .. nw. K
t kt Th. Dromn stt Hotel
association in annual convention
here today adopted a resolution
favoring a referendum of the 18th uu,Ts'lJr 01 uregon; v;iar
.n.mont nce Poor, Willamette university:
Tie association in another res-
At.itinn m th ommeniitlon
and approval of this association
is extended to Governor Meier and
his administration for their atti
tude toward public affairs."
Laundry Holdup
Is Successful;
LOOt ExtenSlVe
TACOMA, Wash., Dec. 5 (AP)
Flourishing a revolver, a mid-
coma laundry here tonight and
tween $1,200 and $1500 in cash.
Keep quiet until I start my
car, was tne warning given in roe
employes who had stood with
raised arms while the bandit
scooped up the contents of the
cash box.
Albany College
Gets Loan Fund
ALBANY, Ore., Dec 8 (AP)
Albany college officials have
announced a new loan fund for
students has been established by
a donation from Dr. George J.
Russell, New York City, who de
livered the baccalaureate sermon
her last Jans.
Th college now has 11 loan
funds.
Gain Accounted for ii?
Marked Advance of
The Utilities
Total is $49,114,541!
As Basis for tax
Levy of 1932
Although Marlon county's as
sessed valuation on land. Improve
menu to Una, city lots and in.
provements to lots, dronned
slightly in 1931, the total assess-
ment roll for the countv is 140 :
705 higher than in 1930. A de
tailed statement on the 1931 as
sessment was obtained yesterday.
w T V r . . .
by The Statesman from the state "
iu commission.
The gain in total assessed rain. .
which represents three-tenths ol
one per cent over the 1930 fig
ures. is accounted for m the mark
ed increase in the valuations on"
auiiues. rnese went up from the
189,841 in 1931, due principally
to extensive improvements made)
by the Portland General Electric
Teiec
iana uss & coke company.
total as8ment roll for
1931, on which the lssa
school district, road district
?tte 'levies will be made, is 149.
." total for 1930 wa.
Mok.',1.
Not Vrt SrreA
lJZ...-. .
Sut i?9
f"" idt ,"1it
Tiue or saiem IO?
iformatlon being yet la
nanas or Assessor Oscar Steel
hammer, whn h, nnf ... m
the mformatlon on the" various
districts for nnM,- i ZZZ.
. : .cnreo. 1UB
1 miormauon on i.Mmn
m8 shown by classIHc.tl.in f
ertv assessed. tahio
I . . . . - " "1-U 1
1 priniea nerewith.
Savings In direct taiatfnn tn
the taxpayers of Mar!on county
on the 1931 a. i !
I ik . 44 .1 . . LV
1 mm reduction in stat
laxauon will be $221,014, or 11
rer cent or the entire tax roll lev-
iea ror nnwHnn hi. c?
hem's savings due to the 4U mill
reaucnon m state taxa"nn will
$81,775 ,in. thi, ,f "
proximately 37 ner cent of alt thl
(Turn to page 2, col. 5)
ruKTLAND, Ore., Dec 5
(AP) Ensign Walter p. Schoeni
nd David C. Williams, both of
Portland, were selected today by
io uregon state Knodes scholar-
snips committee as candidate
rrom uregon.
c-asisn scnoeni. son or Mr and
Mrs. John F. Schoeni. graduated
was captain of the Academy's
crew in nis senior year. He waa
given leave from the U. S S.
lennessee, stationed at San Pe
dro, Calif., to take the examina
tion. Williams is a graduate of the
University of Oregon, majoring la
mainemaucs. He is tne son of Mr.
nd Mra. D. L. Williams
inere were nine other students
I wu w pan m me examlna
tions: J. W. Halderman. Georsre
Harrington, Wallace Campbell
na aumaage Han, an from
uogagan, Oregon state
college; Maurice Ostomel. Reed
cege; ana jya uaen, unneia.
Higher School
Board to Meet
The state board of higher edu
cation will hold an all-day session
Uouncement bDr. E E. Lindsay.
I ..w.i. f- .n,.i4..u. m.j.
i thmt fiai ..r.
ft WftM a ttartA Ti..
I "'
SHOPPING
DAYS
'TIL
CHRISTMAS
n
win
RHODES
ll'DITES
16
t9
v: