The Oregon statesman. (Salem, Or.) 1916-1980, February 25, 1932, Page 1, Image 1

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"" Complete, accarate cover
age of social events in Sa
lem Is affordei Statesman
readers daily in its society
pages. A society calendar Is
a special fcatEre.
Cloady aad nnsettled to
day and Friday, occasional
light ralas; Max. - Temp.
Wednesday 57. Win. 82,
river 1.8 feet, rain -25 Inch.
Salem, Oregon, Thursday Morning, February 25, 1932
No. 287
.Ordinance .Discriminatory
In Favor of Co-op is
Distributor Claim
Proponents or Regulation
Base Arguments Upon.
Health Safeguard
Barring of sale of C grade pas
teurlxed milk to Salem consumers,
as proposed in an amendment to
the city milk ordinance, was hotly
denounced by distributors as dis
crimination in favor of the Dairy
Cooperative association, at the
public hearing on the measure
held at the city hall last night.
Dr. O. A. Olson presided as
chairman of the council commit
tee on the matter and was assist
ed by Alderman Chris Kowits and
W. D. Evans. The purpose of the
" ArrTlnonoa i Vi av avnl aln a I la vs.f
to prohibit, the distributors' han
dling the C milk in their plants,
but to make illegal the sale of this
grade to consumers, as recently
begun here.
Low Grade Milk
Harms Producers
Individual producers and repre
sentatives of the cooperative main
tained that under the present or
dinance they had been obliged to
expend funds in bringing their
plants up to the prescribed health
standards. Sale of the inferior
grade of milk, they averred, would
nullify the consumer-samety factor
and devaluate improvements to
their plants.
At times the hearing developed
into a wordy catfight between the
two factions. Distributors averred
that were the privilege of selling
C grade milk taken away, they
would be at the mercy of the co
operative, from which they would
have to purchase B grade milk.
Claim Protection
Of Public Paramount
Speaking for the present ordin
ance and the proposed amendment.
Dr. Vernon A. Douglas, county
health officer, and J. E. Blink
horn, dairr and food inspector.
said they were In favor of prohib
iting sale of C grade milk because
they were interested in the qual
ity and the consumption of milk
by the citizens. Whereas the health
officials held that the amendment
would result in greater consump
tion of milk, distributors held that
it would decrease consumption
The major points of a leading
speaker for the distributors were
grounded on the assertatlon that
sale of the C grade milk, making
possible a price under the prevail
lng 10 cents a quart for the high
er grade product, would enable
many families to purchase more
W. W. Henry, manager of
(Turn to page 2, col. 3)
Horrors of War Are
Described by Lewis
Sisters, W. U. Grads
t ... .
Japan 'Shockingly Aggressive" Letters Aver;
Fire and Sniping Worst Features;
World Flareup Feared
PORTLAND, Ore.r Feb. 24 Aif) letters aescriDing
conditions in Shanghai were received here today from
Margaret and Betty Lewis, daughters of Mr. and Mrs. John
Lewis, of Portland. .
Both girls are teachers in the Mary Farnham Presby
terian college of Shanghai. They are graduates of Willam-
ette university, Margaret In 19 2 8
and Betty in 1931.
Assassinated as
Traitor, Report
Prudential Operation Held
Illegal by Attorney
For Stockholders
Grand jury investigation of the
acts of James W. Mott, state cor
poration commissioner, and J. R.
Callahan, assistant to Mott, in
taking over and operating the Pru
dential group of savings and loan
associations, was requested Wed
nesday by Tison Kinzell, Portland
Kinzell, who represented G. A.
Southwick, trustee of the share
holders committee of the savings
and loan group, spent more than
an hour conrernng wun jjisinci
Attorney Carson.
Kinzell charged that Callahan
participated in the alleged diver
sion of savings funds to the ex
tent of $80,000, and Mott, having
knowledge of this participation.
had refused to act. He also told
the district attorney that Mott had
used his office to throttle any pub
lic statements in connection with
the transaction.
Kinzell informed Carson that
the associations were solvent when
taken over by the state corpora
tion commissioner.
Carson said he had taken the
matter under consideration.
Although the letters Indicated
the girls had seen nothing of the
actual warfare, they told of see
ing the Commercial press burn
and watching "thousands of peo
ple pouring into the settlement."
They also told of seeing Japanese
planes flying over the city.
"We're all fine and the Ameri
can consul Is keeping us posted
so don't worry about ns but
don't hesitate to believe that
Japan has been shockingly ag
gresslve, wrote Margaret on
January 31. "I don't know what
the American press says about
the situation but I've seen
enough 'in this city to make me
feel that everyone must lend sup
port to any agency that is trying
to avert a world disaster. -
"The worst features so far
have been the awful fire and
(Turn to page 2, col. S)
State Employes Must Exist
On $4.50 for Board
And Room, Ruled
MONMOUTH, Feb. 24 Funer
al services were held this aiter
noon at 2 o'clock at the Keeney
Funeral chapel, Independence,
for Mrs. Rhoda Baker, 68, who
died Monday at the home of her
sister, Mrs. Enoch Chamberlain
of fSuver. near Monmouth. Mrs.
Baker, who was Rhoda Christian,
was born Nov. 25, 1863, in Polk
county, the daughter of Mr. and
Mrs. Harry Christian, early pio
neers of this section.
She was married in 1888 to
William Baker of Portland, and
made her home there until the
death of Mr. Baker in 1930.
She is survived by a foster
daughter, Mrs. Eva West, Los
Angeles, two jHeces, Mrs. Lillie
Gustin, Portland, and Mrs. Henry
Oberson, Independence, and two
sisters, Mrs. Chamberlain and
Mrs. F. C. Baker, Portland.
Dr. H. Charles Dunsniore of
ficiated. Burial was in the I. O.
O. F. cemetery at Independence.
(Copyrighted by the Associated
Press, 1932)
HONOLULU. Feb. 24 (AP)
Negotiations have been entered
ntn with Clarence Darrow, noted
criminal lawyer, to defend Mrs.
Granville Fortescue and three oth
ers against second degree murder
charges March 10, it was learned
today by the Associated Press.
The defendants are accused of
shooting to death Joseph Kahaha
wai, one of five men who had been
charged with assaulting Mrs. For
tescue's daughter, the wife of
Lieutenant Thomas H. Massie of
the U. S. navy. Massie and two
enlisted men of the navy, E. J.
Lord and Albert O. Jones, are the
others charges with Mrs. Fortes
cue. Darrow was in conference with
Dudley Field Malone in New York
yesterday, it was learned, and was
renorted favorable to coming to
urmnlnln to take charge of the
Platform Plans
be Discussed
F. N. Derby, chairman of the
renublican nrecinct committee
men's sDecial platform committee
will confer here Friday with
Hnrt Zorn. another member of
the group, when Zorn is In Salem
for a meeting of the Marion
County Tax Equalization and Re
duction league. Derby said yester
day that he had not yet called any
of the group together for a meet
ing. The idea of forming a repuDU-
can platform before the primaries
was agreed upon at a republican
conference here Saturday after
President Epley to Greet
Expected 300 Guests
At Elks' Temple
Outstanding Speakers are
Scheduled; Banquet
Slated Tonight
State employes traveling on of
ficial business hereafter will have
to be satisfied with a 50 eent
breakfast, 65 cent lunch, 85 cent
dinner and hotel room costing not
more than $2.50 per night.
This was decided by the state
board of control Wednesday, when
a resolution offered by Rufus C
Holman, state treasurer, fixing
the maximum schedule for meals
and hotel rooms at $4.50 per day
was adopted by a two to one vote.
Governor Meier joined with Hoi
man in support of the resolution
while Hal E. Hoss. secretary of
state, voted in the negative.
Holman declared that vouchers
filed with the secretary of state
indicated that some state em
ployes had charged as much as $3
for a meal and $4 for a room.
"Such a charge Is excessive and
out of reason tinder existing con
dltlons." Holman said.
Hoss Believes it
May Increase Cost
Hoss protested the resolution
on the ground mat me Doara oi
control has no Jurisdiction over
state departments outside of insti
tutions, and that the maximum
expense limitation would have a
tendency to Increase rather than
reduce the living costs.
Coordination In the conduct of
the several state Institutions also
was stressed by Holman as a
means of bringing about substan
tian savings.
Duplication of cannery opera
tions at the state institutions was
called to the attention of the
board by William Einzig. state
purchasing agent. He said the
state now has nine well equipped
canneries, any two of which would
process all the fruits and vege
tables required by the state wards.
Einzig was instructed to conduct
a survey of these state-owned
canneries and report his findings
at a snbseauent meeting of the
board of control.
Governor Meier suggested that
at least one of . these canneries
might be used in processing fruits
and vegetables for tne unempioy
d. Holman and Hoss Joined with
Governor Meier in this suggestion
Opening sessions of the 39th
-annual convention of the Oregon
State Dental Society will be heM
at the Elks Temple here this
morning at 9 o'clock, with Dr. H.
Epley of Salem, president. In
the chair and extending welcome
to the 300 visitors expected.
The convention will extend
through three dayswith two out
standing gnest clinicians handling
highlights of the lecture program.
Only one session. Friday night.
will be open to the public. At 7
o'clock the hobby exhibit of vari
ous phases of dentistry including
old dental and surgical Instru
ments, will be open to the public,
and following this motion pic
tures on child life shown by Dr.
D. B. Hill.
Dr. Millberry to
Forecast Future
One of the main lecturers will
be Dr. Guy S. Millberry, of San
Francisco, dean of the University
of California college of dentistry
and member of the board of di
rectors of the Child Health associ
ation and follow-up committee of
section one on the White House
conference on child health and
protection. He has been co-editor
of Hogden's Practical Dental Me
tallurgy. Subjects he will discuss
will be outstanding achievements
In dentistry In the past 10 years,
and forecast for the next 10 years.
The other central speaker will
be Dr. James W. Trosper, ex-member
of the Washington State Den
tal Examiners, a well - known
northwest dentist and prosthetics
specialist of Seattle. He has stu
died under Doctors Tench of New
York, Campbell of Kansas City
and F. E. Roach. His subjects will
be purely technical: "Full and
Partial Denture Construction" and
(Turn to page 2, col. 1)
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p : t&-r ' v
fcyltST xa jj 'gy uJ
V I II I II -I I II Ml I III '"'It
riLiAUL riun i I ib
General jTsaH En
. Tea; Reporters Shown
Defense Trenches r A
They're Deep and Equipped
Strongly; Offensive not
Chinese Plan
SHANGHAI, Feb. 25 (Thurs
day) (AP) Chinese dispatches
from Harbin, Manchuria, report
ed today that General Mah Chan
Shan, Chinese hero of the battle
of Nonni River bridge last falL
had been . assassinated in Harbin.
From a national hero, General
Mah fell low in Chinese public
opinion recently when he sailed
on General Jlro Tamon, Japanese
commander at Mukden, whose
forces General Mah's army oppos
ed at Nonni river, and said he re
gretted having caused General Ta
mon "inconvenience."
Nation "Free to Pursue its
Own Course" is Comment
On Stimson's Note
GERVAIS. Feb. 24 Ted Stev
ens, son of Ellla Stevens of North
Howell, was seriously injured late
Sunday afternoon when he was
struck by a machine driven by
W. S. Levens, of Salem, assistant
attorney general. Stevens was
walking across the highway.
The accident occurred In front
of the Ward Manning home 10
miles north. Stevens was crossing
the highway when he was struck
by the car, traveling south, and
thrown 20 feet. He sustained five
broken ribs, broken, collar bone.
crushed thigh, injuries to the
shoulder and neck. Whether he
suffered Internal injuries has not
been determined. He was rushed
his father's home at North
Howell, from where reports today
indicated his condition is un
The accident was indirectly re
sponsible for another mishap. E.
W. Manning, father of Ward Man
ning, summoned from his chores
at the barn on account of the ac
cident, dropped down from the
hay loft, landing on the upturned
tines of a pitchfork. He ran. the
tines through his left foot, but
was able to be around today.
' Ted Stevens is a brother of Mrs.
Ward Manning.
Secretary Stimson Issued a
forceful reminder today that
world naval ratios are dependent
upon treaties affecting the Orient
and asserted these pacts are
threatened by the Slno-Japanese
in a virorous reaffirmation of
American policy on the far eastern
crisis, contained in. a letter to
Chairman Borah of the senate for
eign relations committee, he said
the United States stands firmly by
these treaties and that present
troubles could have been avoid
ed by their strict observance.
Borah declined to comment on
the Stimson pronouncement. Sen
ator Johnson, California, ranking
reonbllcan on the foreign rela
tions committee, endorsed the se
cretary's statement and said "the
implication that we are free now
to pursue our own course is ruiiy
Justified and I trust will become a
(Copyright, 1932, the. Associated
SHANGHAIyFeb. v24 Sixty
thousand additional men are be
ing sent here from Japan to rein
force the 25,000 already here,
General Tsai Tlng-Kal, comman
der of the 19th Chinese route ar
my defending Shanghai, today
told 40 newspaper correspon
dents who made a hazardous mo
tor trip to his headquarters at
The general had invited the re
porters to tea although it de
veloped he didn't have any tea
when he learned that the Japanese
command had cancelled all passes
allowing foreign correspondents to
go Into the Japanese lines.
Trenches Viewed
Are Well Protected -
After providing refreshments
for his guests in the trampled
garden adjoining his headquar
ters building, the general sent
them back to Shanghai and gave
them an opportunity on the way
to inspect part of bis defense po
Those were surprisingly strong.
The trenches were deep and well
equipped with dugouts with earth
en roofs, which afforded excellent
protection from bombs and artil
lery fire.
"Tell the world this truth! My
army could force the Japanese out
of Chinese territory quickly, but
we are not taking the offensive
because we want peace and we
want to preserve the neutrality of
the International settlement," said
General Tsal.
The Japanese may win after a
long fight, but we will be winners
in principle. We will resist to the
last bullet and to the last min
Japanese Concentrate all Available men on Kiangwa
Front in Response to Rumors of Great Offensive
Planned by Home Troops in Advance of Arrival af
Reinforcements Ordered at Tokyo
Foreign Vessels Warned to Keep Away From Japan Base
Of Attack, Indicating Plans to Shell and Prevent
Landing of Reinforcements Under Protection of tha
Neutral Zone; Rumors Flying Again
SHANGHAI, Feb. 25 (AP) Japanese forces crushed tke
Chinese offensive late this afternoon northwest of Kiangwan sad
were sweeping forward In an encircling movement toward Tacav
ang in the fiercest battle of nearly a week of fighting.
Tbey bad claimed they had broken the Chinese first line de
fenses completely and that the Chinese troops were forced into
disorderly retreat marked by confusion and panic. The village of
Kiangwan was still held by the Chinese bat it was virtually snsr
rounded. The Japanese artillery moved forward to two new put
tions daring the afternoon and the Infantry had long since left the
locations it occupied in the morning.
BANK ill
Many Housewives Attend
As Cooking School Opens
Between four and five hundred
people attended the opening ses
sion of the Safeway cooking
school at . the Armory yesterday
afternoon. The way the ladles lin
gered after the two-hour session
showed their great Interest In the
art and science of cookery. The
economists In charge, Misses
Amelia Sansom and Helen Eliza
beth Brown by their pleasant
manner and engaging conversa
tional style, of lecturing, won the
favor of the audience. The loud
speaker arrangement failed to
work successfully .at first, - but
when work tables were changed
so the ladies could speak direct
ly Into the microphone then every
thing eould be heard plainly. Fur
ther lmnrovements will be made
In the audition system for the ses
sion this afternoon. The school
will continue this afternoon and
Vrlffl-r from to 4. .
Here are some of the helpful
things, the. ladles learned yester
Disregard all rules and regula
tions and put rice on in cold wat
er and boil for 15 minutes to
make each grain stand out by it
self. That children adore eating
gelatin if it is colored and served
in cubes of different hues. That
there is a brand new type of cof
fee pot. That bread pudding may
be made so that it isn't dry if
housewives follow the bread pud-
dlnr recine of Julia Lee Wright's
mother as demonstrated at the
cooklnr school. That magic lem
nn eream nle with meringue is
int tha thine to serve on special
occasions. That the graham crack
er roll is suitable when the simple
dMRert is desired.
.Misses Brown and Sansom also
demonstrated proper ways of mak
n coffee and prepared before
the Tery eyes of the large audi
im of homemakers such lnter-
ttnr dishes as pastry twigs, stan
dard biscuits, delicious meat
roll, which can be made from left
(Tirn t page 2, col. l) ,
Professor H. E. Rahe's foren
sic department at Willamette unl
Versltv will complete a busy week
of debating in contests today ana
tomorrow, meeting the wasning'
ton State college team at Waller
Hall this afternoon at 2 o'clock
anil meetlnc University of Ore-
s-on's debitors Friday.
Ross Knotts ana naipn ucuui
lough wil argue the negative side
of today's Question: ttesoivea
That the house disapproves the
practice of wage cutting during
the present depression.
Both the varsity and iresnman
debate squads will engage TJniver-
sltT of Oregon Triday. The com
binatlons of uanieia uarneu ana
Jack Simpson, and Reo Young and
Bill Mosher will meet the Oregon
freshmen in the afternoon.
Lafkr and Rudln. and Clark
and Bolinger will debate the Ore
gon Varsity at night with a split
team plan being followed. An Ore
gon man will draw one of the Wil
lamette men and the two will de
bate the other mixed pair.
Soldiers Home
Site is Deeded
To Government
Members of the state board of
control Wednesday Blgned deeds
which will transfer the old sol-
A special committee named by
thA Willamette university board
of trustees to investigate the sta
tn of th law school here, met
in Salem on Wednesday for an all
at session. Judge Charles H
Carey of Portland, chairman of
the committee, headed the group
In Its Investigation of the school
The library, classrooms, wora
ing equipment were all investiga
ted as well as the scnoors recora
Tha committee is expected to re
port at an early date. The trust
ees, meeting last week in Tort
land, decided to hold an adjourn
ed gathering when the commit
tee's reoort was made. Judge Car
ev did not indicate yesterday when
his group would he reaay 10 re-
Other members of the commit
tee Included A. R. Watxek and
Roy Shields of Portland and Jus
tice -John nana ana waiter m,
Keves of Salem. E. B. McNaugh
ton. another member from Port
land, was unable to be present
Formal approval has been giv
en by A. A. Schramm, state super
intendent of banks, for resump
tion of business of the Curry
County bank at Gold Beach. The
bank will reopen Saturday.
The affairs of this bank were
placed in the hands of the state
banking department at the close
of business January 20. In the plan
of reorganization the old stock
holders surrendered their stock
and this has been taken up by new
stockholders who have paid In
cash $120 per share.
This gives the bank a new capi
tal of $25,000. surplus of $5000
and places the Institution In excel
lent financial condition, Schramm
said. The depositors receive the
full amount of their deposit. The
stock was all subscribed locally.
Directors of the bank Include
C. H. Bailey. C- H. Buffington and
C. H. Young. Gold Beach; Louis
L. Knapp and Frank H. Seal. Port
OrfordrW. J. Work, Brookings,
and F. B. Postel, Weddeburn.
C. H. Bailey is president of the
bank, Louis L. Knapp. vice-presi
dent, and C. H. Young, cashier.
(Copyright, 1932. by The Associated Press)
SHANGHAI, Feb. 25 (Thursday) Japan hurled all her
forces in Shanghai against the Chinese defenses of
Kiangwan today in a conflict that rose to new heights of
Threat of a Chinese offensive to smash Japanese ones
and block the landing of more troops drove the Nipponese
forces against the Chinese strongholds in the heaviest fight
ing yet of the five-day drive on the Kiangwan f ront
The village of Miaochungchen was in flames with in
fantry and machine gunners of both sides locked in combat
roundabout. O
The Japanese said that they
had broken the Chinese lines at
Miaochungchen, that tbe Chinese
were retreating from that area
and that the Japanese had
achieved an appreciable advance
slightly northwest of Kiangwan.
The Japanese said they had
pursued farther toward Tazang, a
sizable town five miles due west
of Kiangwan. There was no con
firmation of this advance. Tazang
already was virtually destroyed by
Japanese bombers, although
strong Chinese entrenchments
were still there.
None was allowed to enter the
Japanese xone without the closest
Inspection by sentries stationed
outside the trench. Officers said
their tightly drawn defense was
necessitated by the continued fir
ing of Chinese snipers whom they
had been unable to eradicate.
Reports of additional Japanese
forces having arrived continued to
circulate feverishly, but none had
appeared this morning. The Jap
anese docks in the international
settlement were cleared, some in
terpreting this as evidence that
the reinforcements soon would
(Turn to page 2, col. 2)
LONDON, Feb. 24. (AP)
Th rovernment today revealed a
nrolect to auarantee wheat grow
ers in the British Isles a standard
price of 10 shillings per hundred
weight as a part or us general iv
per cent tariff policy.
Lower Gasoline
Price Likely in
This City Soon
With gasoline selling at Port
land for as low as IS cents a gal
lon, in contrast with the IS hi
cent price in Salem, a change but
not another gas war is expected
here soon. In at least one string
of distributor - owned stations.
pumps have been installed for a
new brand of gasoline which will
sell at a lower price. Other com
panies are believed planning to
follow suit.
Sale of the supposedly lower
grade gas at reduced price has
been taken up by major distribu
tors at Portland as a means of
competing with "bootleg" dealers.
This practice has been common In
California for a number of years.
It is reported.
Claim he Shot Down Japan
Plane; no Protest by
Japanese Planned
SHANGHAI, Feb. 25. (AP)
(Thursday) Japanese authorities
denied today that they were con
sidering a protest against Ameri
cans participating In the strucsJ
with China as a result of Robert
Short, an American aviator, hav
ing been killed in an air hattle
at Soochow.
Reports had circulated here
that the Japanese planned to asli"'-
Edwln S. Cunningham. United
States consul general, to prevent
Americans from participating la
the fighting in any way, tbe pro
test to be based on the groaad
that Short was serving in the Chi
nese army at the time he was shot
down. Inquiries at the Japanese
consulate brought the denial.
Meanwhile, the Chinese made
the American airman into a na
tional hero. The vernacular press
lauded him as "a great friead et
China, seeking to assist her
against Japanese aggression," and
T. V. Soong, former finance min
ister of the nationalist govern
ment, said he was requesting
Short's mother to allow the body
of her son to be burled in China.
The Knomin (Chinese) news
agency said that .the day before
Short's plane was brought dawn.
in flames by the Japanese he ac
counted for a Japanese ship. Short
scored this victory, the agency re
ported. In an engagement near
Woosung during which his own
plane was riddled with bullets.
wnicn will irausier mo viu -
diers home property at Roseburg tiBllrOaCL 1
the reaerai government. iae
property will be used in connec
tion with the new million dollar
federal soldiers home to be -erected
in Roseburg during the cur
rent year.
Transfer of this property io
the federal government will save
the state approximately $8 6,000
The deeds were signed by
Governor Meier, State Treasurer
Holman and Secretary of State
Late Sports
PORTLAND, ( Ore.. Feb. 24
(AP) Henry .Jones of Provo,
Utah, defeated Pete Metropoulos
of Pontlac Mich., two faUs out of
three in a wrestling match here
Each weighed 14S pounds
Jones won the first tall in 2
minutes with a leg strangle and
Metropoulos evened the bout In
23 minutes with a wlnglock. Met
ropoulos fell out of the ring while
they were grappling for the third
fall. He was unable to return.
Back Employes
As Work Gains
PORTLAND. Ore.. Feb. 24
(AP) W. F. Turner, president
of the Spokane, Portland ft Seat
tle railroad, announced today
ahont 70 men were being return
ed to work on the company s
Fifty-six men already are back
at work and IS more will be re
emnloyed about April 1 when
freight service is Inaugurated over
the Santiaxn' extension. The pres
ent Increase in work has resulted
from the railroad's nightly opera
tion of three trains of 20 cars
each to move 700.000 tons of rock
from near Fisher, Wash- to the
mouth of the Columbia river. The
rock is to be used in repairing the
south Jetty.
MADRID, Feb. 24. (AP)
Spain's first divorce law, a prod
uct of the revolution that set up
the new republic, was approved
In its final ietails by the national
assembly tonight
F. Meindl Corroborates
McCallister 's Testimony
MINNEAPOLIS, Minn., Feb. 24.
(AP) W. B. Foshay enter
prises were pictured as having
been carefully managed and fi
nanced in testimony today by H.
H. Henley, on trial with Foshay
on mall fraud charges growing
out of the 1929 collapse of the
Earlier in the day Fred Jueinaa,
former chief examiner for the Ore
gon corporation commission, join
ed Former Commissioner Mark
McCallister In denying that "in
ducements" were made by repre
sentatives of W. B. Foshay enter
prises to qualify securities for sale
in Oregon. -
Meindl said that a report he
signed January 16. 1928, when he
held the position, approving me
sale, reversing another report
I made two days previously, was
based on the merits of the showing-made
by the eompany.
Meindl said the reversal came
about as a result of a correction
mad la the annlicatlon of the
Foshay company to sell $525,000 Business buraan.
in preferred stock and 9500 shares
of common stock In the state.
He said that G. E. Shrader
asked that he make no report of
the error of $430,000 in an ap
praisal exhibit to the Foshay home
office. Shrader, former Foshay
employe, appearing as a govern
ment witness, testified earlier that
he had paid J. A. Arnold, Port
land attorney, $2000 in four bun
dles of currency to obtain the per
mit. Meindl said Arnold was not
present at the second hearing.
R. O. Hubbard, a reporter for
the Portland Journal, testified that
McCallister told him on a Minneapolis-bound
train earl) this week
that ha had talked to Arnold in
Portland Sunday, January IB.
1928, tha day before the Foshay
application was granted.
McCallister en . cross-examination
had denied this, saying he
met Arnold January 14 in a hotel
dining room. Hubbard's testimony
was supported by Robert Mount,
manarer of tha Portland Better
Pacific Highway
Widening Topic
At Meet Tonight
WOODBURN. Feb. 24 It baa
been announced that a special
meeting of persons Interested in
the improvement of tbe Pacific
highway from Salem to Portland
will be held here in the St. Lake's
community hall Thursday night,
starting at 7:30 p.m.
The meeting is for the rort-
land-Salem division of the Oregon
Pacifle Highway association. .Ev
eryone who is Interested la the
widening and Improvement of the
highway between Oregon's two
principal cities is Invited to at
tend the meeting.
Reports from other towns along
the route signify that a large
crowd will be present. Dr. Gerald
B. Smith of Wood burn win ba :
chairman. There Is to be no tons-
al speaker, general dlsenssiOM be-
ing the order of the meet.
BEND, Ore, Feb. 14; CAP
H. A. MUler. Bend lumber dealer.
announced today he will seek the
republican nomination for atata '
representative . from Deschutes
county. - -
day at the session: "