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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (June 1, 1932)
LITTLE MERCHANTS , AU Statesman carriers are charged for all papers they , deliver. Please notify the , office . when changing ' ad dress. EIGHTY-SECOND YEAR Salem," Oregon Wednesday Morning, June 1, 1932 No.5C if - MM CounTakes Dp W Oregon Tax League Proposal Held Misleading, Disastrous Urge Citizens not to Sign Petition; Will Back Economy EUGENE. May 31. (AP) More than 5060 Lane county resi dents, gathered at a mass meeting here tonight, voiced their disap proval of a proposal to consoli date the University of Oregon and Oregon State college into one great institution at Corvallls. move the normal schools to EJu gene, abandon -the normal school at Monmouth and turn the normal schools at LaGrande and Ashland into Junior colleges. Homer D. Angell of Portland, president of the University Alum ni association. In the principal speech at the meeting urged the voters of the state to defeat the initiative measure proposing the change. He asserted adoption of the measure would destroy the university and would result In in creased taxes because new build ings would be required at Corval lls. He predicted depreciation in value of millions of dollars worth of property at LaGrande, Ashland, Monmouth and Eugene. No Economy Found In Consolidation Flan "I was in the legislature for two terms," Angell said,, "and as a member of the ways and means committee I studied the reports of the two schools thoroughly. It was always our Intention to main tain a great university at Eugene and a great technical and agri cultural college at Corvallls. "Cost of maintaining of the plant at Eugene is only negligible. It would cost the taxpayer as much to teach the Eugene stu dents at Corvallls as it would at Eugene, but moving the univer sity to Corvallls would mean ad ditional tax burdens for addition al buildings at Corvallls and at the same time millions of dollars worth of property would be de stroyed at Eugene, Ashland, Mon mouth and LaGrande that has teen paid for by taxation." Telegrams from alumni at Ash land, Umatilla county, Portland. Salem, LaGrande, North Bend, Bend, Jackson county and from the editors of the Ashland Tid ings, Roaeburg News - Review, Bend Bulletin, and Astorian-Bud-get pledged support in opposing tbe consolidation move. Similar telegrams were received from the LaGrande and Ashland chambers of commerce. Declares Farmers Alho are Opposed Judge Lawrence R. Harris of Eugene discussed the effect the proposed measure would have upon the communities affected. Senator H. C. Wheeler of Lane county, who said he voiced the farmers' attitude, said the meas ure would "side-track" those courses now conducted at the col lege which are of particular in terest to the farmers. He also re called that at the last session of the state legislature Benton coun tv representatives told of over crowding at Corvallls and urged enlargement of accommodations. The meeting adopted the fol lowing resolution: Whereas, the proposed initia tive bill of the Marion county league purports to be a bill to simplify the educational structure of Oregon and reduce expenses. and Whereas, in reality the bill does not do this but moves the university bodily to Corvallls, moves the law school to Salem, moves the normal schools bodily to Eugene, scraps the entire plant at Monmouth, demands the crea tion of new and expensive Junior colleges at LaGrande and Ashland to replace going normal schools. and , Whereas,, the scheme Involves millions in losses on abandoned vronertles and millions of new capital outlay to accommodate transfers to the Corvallls campus, and Whereas, the bill fails of Its eretended purpose as an economy measure by the fact that it does not reduce by one traction oi mill the fixed allotment of state funds for higher education, nor Drove any. plan for doing so. and Whereas, the scheme calls for the abandonment of the program -which the state board of higher education has worked oat after three years ot study at a. saving of 1100,000 a rear im expense Now. therefore, be it resolved by this bedy of Lane county citi lens and taxpayers: That the false claims of this treasure be called to the atten- " tlos of the governor of the state. ths state board of higher educa tion and. all taxpayers leeiues frantet. farm anions, chamlers commerce and civic org-nisa- ttftni. and T-" vSftr That elUiens throughout the atste el Oregon be warned not V slja petitions for ft mea vhlea (Turn M pagw s, . University IK IIP Lonergan is, Mentioned as Possible Repeater in House Gavel job Frank Lonergan of Portland, Earl Snell of Arlington and Her bert Gordon of Portland are names most mentioned for the speakership of the 1933 house in the legislature here. Friends of Lonergan have already sought votes from the Marion county delegation, it was reported here yesterday. Lonergan served as speaker of the 1931 session. Cus tom has decreed that usually a new man is chosen speaker. The Snell forces were hard at work in the closing days of the last session but did not line up majority of votes for their man. The makeup of the 1933 house is so changed from that of the pre vious session that no candidate for speaker can enter the fight for the Job next January with a very large pledged vote. Herbert Gordon Tan against Lonergan at the last session. Op ponents of his election as speaker next year point to tbe inadvisa bility of selecting a successor to (Turn to page. 2, col. 2) SHERWOOD HIED IIP WITH WALKER NEW YORK, May 31 (AP) By showing that more than $75, 000 was drawn from Russell T. Sherwood's -bank accounts for the benefit of an unnamed friend of Mayor Walker, Samuel Seabury today sought to link Walker be yond dispute with the $1,000,000 financial transactions of the $3,- 500-a-year accountant. The snowy-haired counsel of the Hofstadter legislative com mittee made only one reference to the identity of the mysterious person, whom be declined to name. "If anybody knew that person," he told the inquiry board, "he would know that the money was drawn on Mayor Walker's author ity and not on Sherwood's." When the mayor had his day In court he testified he had author ized a payment of $7,500 to this individual from a Joint brokerage account he had with Paul Block, publisher, but denied he had eith er an interest in or a knowledge of Sherwood's bank and broker age accounts. Herriot Pledges Unselfish Policy As French Chief PARIS, May 31 (AP) The probable Premier - designate- of France, Edouard Herriot, today pledged himself to chart an unsel fish course, unhampered by hate. He was speaking to a gathering. of his radical socialists (liberals) at a luncheon celebrating their recent election victories. France does not wish to base hef prosperity on the misery of any other people, M. Herriot said. He did not specify that his re marks applied to French relations with Germany. KRUG FUNERAL TODAY SILVERTON, May 31 Funer al services for Fred Krug, Sr., prominent resident ot this vicin ity, are scheduled for Wednesday at 2 p. m. in Kaufmann s Chris tian Apostolic church. HP BOBBING 6! Stockman Tells His Side Of Empire Firm Affairs DALLAS. May 31 (Special) . Jay Stockman, who is on trial on a charge of devising a scheme to defraud in connection with activi ties of the Empire Holding corpor ation, was the first witness in his own. defense when the trial was resumed here today. -TTRs state rested late last week. 7 Stockman told of Incidents lead ing op to the forming of the cor poration. He met Frank Keller in Utah, and later George Robison in Portland. In August, 1930 Kellert came to Portland and presented plans for the organization ot the United States Holding compauy. asking Stockman : to investigate laws pertaining to such an organ isation. He did so and later pre pared the articles of incorporation with by-laws. He was asked to be come affiliated with tbe associa tion at the . time the articles of incorporation were filed feat did not make his decision until later. When aiked as to the time when Judge Cothow became president e MEIER SELECTS STATE PAY GUT Henry Corbett, McCready, Mahaffey to 'Consider Standardization Further Slash in Amounts Allowed for Room and Board Forecast Reduction of statehouse salar ies and standardization of pay ment made to employes for sim ilar services in various offices were forecast yesterday when the state board of control unanimous ly adopted a resolution authoriz ing appointment of a committee to make recommendations for sal ary adjustments on all capitol em ployes. The committee is to report by July 1. Part of its recommen dations may be made the subject of legislation in 1932. Governor Julius L. Meier In troduced the resolution. The ac tion was necessitated he stated, because of the deficit brought for ward from former administrations and the need to balance the state budget as well as to he consistent with the practice uniformly ad opted in private business." McCready, Corbett, Mahaffey on Board Late Tuesday Governor Meier named the committee authorised by the board. Members are Lynn S. McCready of Eugene, Henry L. Corbett of Portland, E. P. Mahaf fey of Bend. The committee is to start at once upon its survey. Further economies in operation of state government were indi cated when Rufus C. , Holman, state treasurer, announced he planned to present another res olution calling for a still further reduction in the maximum tor meals and hotel accommodations for state-officials and employes when tr&velin- over the state. Holman several months ago In troduced a resolution calling for a maximum of $4.50 a day for meals and hotel rooms. When William Elnzig, state purchasing agent, -reported- that food prices had been reduced considerably over the prices six months ago. Holman declared there was no reason why a lower limit should not be placed on meals. The state board also indicated today it would refuse to author ize any ow-or-siate inps Dy su perintendents of state institu tions or other state officials when the matter came up of send ing Walter C. Dry, head of the state blind institutions, to New York to ascertain methods ot im proving the institutions. Views Necessity For More Economy The resolution presented by tne governor in part reads as follows: "Whereas the present adminis tration inherited from preceding administrations an accumulated deficiency aggregating approxi mately $3,000,000 and "Whereas in addition to the said deficit a survey of the pres ent financial status of the state reveals that there will be a prob able .shrinkage in revenues due to the depressed economic condi tion of the country as a whole. "Whereas during the present financial depression all branches of private enterprise have accom panied shrinkage in revenues by drastic curtailment of expenses, including outlays for salaries and wages in all brackets: "Now therefore be it resolved that the chairman ot this board authorized to appoint a committee of three to make a" survey and study of tbe salary schedule of all state employes, Including those salaries fixed by law, and that said committee shall report its' findings and recommendations with respect to adjustments and economies that may be effected to this board not later than July 1 BANKS ARE MERGED MARSH FIELD, Ore., May 31 (AP) The Security bank of Myrtle Point today acquired the Bank of Myrtle Point, with de posits of $121,985. the company Stockman replied that he had not been approached until November 8. 1930, at which time be had called Coshow by tele phone asking him to come to Portland, and there he was told of the plans and asked to become president. Stockman was not cer tain of the exact date which he ac cepted but stated It was only a few. days later. :; He claimed that until thetlme of granting ot the permit to sell stock, the officers had spent some $13,000 out of their own pockets. in carrying on the organization. When questioned regarding the balance sheet, he said he had been requested to give that on Decem ber, 1939, and had had figures re garding the corporation from Dr. Adams tiled In the balance sheet and taken to the state corporation commissioner in Salem. He said the permit to sell stock was issued on December 10, and about the middle of . the same month - the (Turn to page J, eoU Wise-Cracking Jimmy Urbane as His Tangled Finances Are Bared Mi iii ii I in rm rrmn i r ii-xMi-i mmmmmmmmm IS TfiAI SO? I'M STILL I 5E7ER GOT A PHIHYl THAI IS EOT 1 U .Al W- Hade In the New York supreme court daring a hearing of the Hof stadter investigating committee, these candid camera photos show Mayor James J. Walker's varying facial expressions as he replied to tbe question pat him by Judge Samnei Seabury. One scarcely needs the text of the mayor's replies to determine what they were, so expressively doee his face convey his meaning. OBJECT TG BALLOT TITLE, TRUCK BILL Highway Protective Measure Designation Misreading' Operators Contend Appeal from the ballot title for the initiative measure known as the highway protective bill pro viding for redistribution of motor license charges and Increasing fees of certain trucks and carriers. was filed in the supreme court here today by the allied track owners. The appeal declares the ballot title is unfair. Defendants named in the appeal are Hal E. Hoss as secretary of state and the highway protective association, sponsors of the Initia tive measure for which a ballot title was recently Issued by Attor ney General Van Winkle. The complaint states that the defendant corporation consists of but two individuals, Oswald West and his stenographer, Ellin Ad ams, and that it is unincorporated. The complaint further states that the ballot title issued is insuffi cient, misleading, incomplete, pre judicial and deceptive. The initiative bill, according to the title, would provide for a sur vey of license fees and subsequent recommendations looking to redis tribution of fee charges on trucks and common carriers. The meas ure would also provide additional charges upon operators of trucks and carriers. The allied truck owners, tbe complaint states, is a voluntary or ganization, at Portland, formed to promote the best interests of the motor truck transportation indus try. E PORTLAND, Ore., May $1 (AP) Strawberry prices tumbled to the lowest mark in several years on the Portland market to day. The slump was- attributed to great quantities of berries brought m by farmers living within truck ing distance of the city. The prices ranged from 35 to 40 cents a crate for new Oregons to 60 to 75 cents a crate for Gold Dollars. THE DALLES, Ore.. May 31. (AP) Local strawberry growers today were assured of a minimum price of $1 a crate for their prod uct when The Dalles retailers signed a petition agreeing to buy only local berries on this basis. The movement for $1 berries was sponsored by a local newspa per and was the result of the de moralized Portland market. Pro duction in this district does, not exceea local aemand. Cold and Rainy May Experienced A cold, rainy month passed Into oblivion Tuesday when the calen dar dropped May, 1932, from Its schedule and started June ticking off the days. - - A record of J. 01 inches of rain stands to its credit and 10 days of sunshine. Contrasting this with past Mays Is this record: May, 1931, .78 Inches; and 1.7S Inches for 1930. AUTO CRASH FATAL " MARSHFIELD, Ore.. May 31 (AP) David Davidson, $5, ot Myrtle Point, died In a hospital there today from Injuries re ceived two hours earlier in an au tomobile accident on the Rose burg highway. IS miles east of Myrtle Point, : STM T BOCK BOTTOM lUXCSi'XbS'S BZQZS) TRUE! JOT COUHSJSX SID LOS-ANGELES Mi COMMITS SUICIDE "Rules to die by" Article In Magazine Found Near Body In Hotel Room William Dennison Clark. EE. committed suicide in his room at me Hotel Senator, late Monday night or early Tuesday, his body being found yesterday afternoon by city police who were called to the hotel by Manager W. W. Chadwick when a chambermaid notified him -that so one had come from Clark's room during the day. Clark's address, found among his effects, -yntx 9t7 Shattuck place, Los Angeles. He had been a captain in the spruce division ot the air service during the war. Relatives by marriage of Clark came to Salem last night to take tne body to Portland where fn- neral services are being arranged. An unmalled letter to his wife written last month from San Francisco was addressed to her at 225 West 12th street. New York city. The contents of the letter indicated Clark had intended to commit suicide while he was In (Turn to page 2, col. 4) TO BERLIN, May 31. (AP) President Paul von Hlndenburr today called upon a war time mil-. uary associate and incidentally man accused of directing Ger man propaganda In the United States in 1915 to form a tem porary government for Germany. He is Franz von Papen, mili tary attache in in the United States until Washington demand- ea nis wunarawai, ana later a general staff officer of the kai ser's imperial army. The president commissioned Von Papen to form a "national concentration cabinet" to carry on until fall. Adolf Hitler's national social 1st (fascist) party announced through its headquarters that it would withhold support from a cabinet formed by Ilerr von Papen. It was expected, however, that tbe Hitlerites would be giv en a chance to make good their claim that they could control the reichstag If given the chance in a general election. Home at Labish Center Robbed; Gasoline Taken LABISH CENTER, May 31. (Special) Nocturnal thieves made away with about 20 gallons of gasoline, a five-gallon can and an automobile Jack from the O. G. McClaughry onion house Mon day night. Mr. McClaughry was attracted to the building by the barking of their dog, but the thieves had escaped by the time he arrived at the building, a short distance from the house. Pioneer Courier y Dies at Age' 74 KLAMATH FALLS, Ore., May 31 (AP) Major Watson Over ton. 74. a United States courier in 1372. died here tonight. Major Overton carried the news of the Lule Lake massacre in Mo doe, county. Calif., to Fort Klam ath.' He also drove an early-day stage between here and Agar, CaL VON PW CHOSEN 1 CAB NET Tl BURGLARY gSJgfli Some of Loot From Little French Shop Is Found, Rest Being Traced Alsmans and Miller Held; Police Credited With Clever Sleuthing With the arrest yesterday aft ernoon of three Salem men. city police say they believe they have caught all the persons involved in the burglary of the Little French shop last Thursday night and of Bishop's clothing store, Nortb Commercial street, last fall. Offi cers expressed this belief last night and also stated that they ex pected to recover virtually all of the loot taken from the two places. Those arrested: t Alma "Slim" Alsman. 1790 South Capitol street, charged witb receiving stolen property. Marlon Alsman, resident of Hollywood district, brother of Alma and Fern Miller, both charged with burglary not in a dwelling. A youth named Davis, held for investigation. Justice of the Peace Hayden ordered the Alsman brothers and Miller held under $3000 ball. which they did not furnish. Miller and Marlon Alsman are in the city Jail, Alma Alsman In the county jail. Other Crimea May Be Laid to Trio Other crimes may be laid to this trio, the officers said. The three were mentioned yesterday in- connection with the recent bur glary of an Aumsville store. State police will enter the case to In vestigate the county angle. uieinci Attorney carson re ported late last night that Miller had confessed to his part in the Little French shop crime but that the other two had "not done so directly". "The evidence appears to make it a good case," he said. "It is a fine piece of police work." (Torn to page 1, col. 1) LlOfDlHTETS Lloyd Girod, Willamette uni versity senior who is graduating this June, has been notified of his appointment as boys' advisor and cottage manager at the Ore gon state training school at Woodburn, he stated Tuesday. He will graduate from Willam ette June 13 and will begin work on the 15th. Girod is a sociology major in the university and has specialized In criminology. During the past year he has made a careful study of the Ore gon training school, interviewing every boy there as to his home life and all causes contributing to delinquency. This work was in eluded as part of his seminar work under his major course. Girod has been a member of the football squad for four sea sons and during his senior year coached wrestling at Willamette university. He is an officer in the Alpha Psi Delta fraternity. Two Scholarship Loan Funds Left PORTLAND, Ore., May $1 (AP) The will of Eva M Howell, admitted to -probate in circuit court today, left scholar ship loan funds of $5000 each to Oregon State college at Corvallls and to Pacific university at For est Grove. They are to be known as the Joseph Howell Memorial funds. Mrs. Howell died here May 25 STATE SCHOOL JOB Scout Campaign Staits; Area Budget is Reduced With a reduced budget to raise for 1932-33, Salem members of Cascade Area Council, Boy Scouts, last night voiced their be lief that pledges would be forth coming to make possible carrying on the scout work here daring the fiscal year beginning today. They met at The Spa last night tor the "kickotr of the Intensive drive which will be put on during the next few days. The . program for the coming year " calls tor expenditure of 11.75 per hoy in .the scout troops. Salem has IT troops with a mem bership ot 367 boys, slightly less than halt ot all troops and boys in the area, which comprises Marion. Polk and Linn counties. Salem's share ot the area budget of $3725 Is $210W An additional $2000 will be needed to clear up a deficit from the last four years. Brief opinions of the value of scouting were given by a number of the men present at the ban oueL If. Clifford Uoyalhan said he did not know ot any nfovement today' which, vm Vetter bU to APPEAL FLOUTED v Manufacturers' Sale tax Backed up by President With Personal Plea Before Senate, Defeated 53 to 27; Solons However Harken to Chief Executive AnemV Additional $285,000,000 Provision Income Rates Increased Further, Cent a Gallon Placed On Gasoline, Three per Gross. Receipts; Doubt Budget is Really Balanced WASHINGTON, June 1 (Wednesday) ( AP) The sen ate early today passed the revenue bill filled with new taxes to reach the budget balancing goal urged by President Hoover in a personal appeal to the chamber. The final roll call came at 12 :20 a. m., after, a day and night filled with a whirlwind of events climaxed by the sur prise call on Capitol Hill by the president to ask prompt and unified action to arrest foreign attacks on the American doU lar. The last minute endorsement by the president of the disputed manufacturers sales tax, however, was scorned by the senate in its driving finish. The 1.75 per cent manuf ac- oturers sales lery was adranced SIX OLYMPIC TOUR Noted Girl Swimmers are In Party; Weather is Handicap to Trip Only six of 21 listed entries in the Olympic Air cruise made Sa lem at 1 n.m. Tuesday, had weath er conditions holding back several of the tour members while a con siderable number took off for Los Angeles. The cruise, begun May 28 and to end today, extended from tbe southern part of California to Vancouver, B. C. and was ar ranged as a means of publicizing the Olympic games next July and August. Featured members or me pariy which landed at the Salem airport were Georgia Coleman and Joseph ine McKlm, both stars of national repute in aquatic events. Miss Coleman holds three-foot, 10-foot, and 30-foot diving records and will represent tbe United States in the Olympics. Miss McKim has won laurels as a 100-yard swimmer. She Is a runner-up for national honors against Miss Helene Madi son of Seattle. Both young ladles. liberally coated with California tan, expressed their pleasure at being able to make the trip and said they were enjoying it thor oughly. Frances Dudrey, flying a Stln son plane, was the only woman pilot of the contingent. With her flew Ted Peters. Waldo Waterman, flying a large three motored Bach airplane, brought the largest passenger list. With him the two Olympic per formers, Clifford M. Rawson, secretary-manager of the Los An geles Junior chamber of commerce and Leonard Comegys, an attor ney. Warten Carey piloted a Union Oil owned Curtis-Wright open bi plane. With him was J. H. Gllli land, vice president ot the Junior chamber of commerce of Los An geles. Roy Harding piloted a partan plane owned by the Texas Oil company and with him was Jerry Burtnevy, representative of the Los Angeles Times and the (Turn to page 2, col. 4) train boys than scouting. W. L. PhllUps stated that the area's budget is about halt what it was in 1923 and contrasted the cost per scout with the per capita cost ot keeping boys in the state train ing school, $450. "If we can get a boy and give him the Scout training, it will be a difficult matter getting him to do things which would send him to the state training schools," de clared J. T. Delaney, president of the area counclL Judge H. 1L Belt ot the state supreme court, who serves as Judge for the Scout courts ot hon or, said: "For many years X hare been Impressed with the value of scouting. My experience on the circuit bench was that no hoy who ever practiced scouting' ever came up in court In a criminal proceed ing. My idea Is that If the people will take more Interest in scout ing, they will he able to spend less on Jails." The campaign will let nnder . .(Turn to page I, coL 1), . mm m he Cent on Electric Company Still Entertained Whether late in the night by Senator Walsh (D., Mass.) and voted down 53 to 27. Additional Revenue Voted as Desired Tne senate did respond with determination to administration appeals advanced personally by the president-and Secretary Mill for an eleventh-hour addition of $285,000,000 in new revenue tm make sure the government win pay its own way next year. It voted further Increases fee the Income rates; a one cent s gallon levy on gasoline and a ' three per cent tax on gross re ceipts of electric power com pa a les. These changes were estimat ed to yield 3280.000,000 and bring the total of the measure is to the 11,115,000,000 asked fey the administration. The greatest peacetime revt-nne-raising bill now gees to con ference for adjustment of differ ences with the house, but no ma jor disputes are impending be tween the two chambers, and fi nal enactment of tbe legislation within a week is expected. Its nerves ragged from the day and night grind, tbe senate wrangled persistently, and a sharp exchange occurred Just be fore final passage. Senators Tydlngs of Maryland. and Glass of Virginia, both den- ocrats, questioned sharply wheth er the bill would balance the bud get Senator Reed of Pennsylvania, an administration spokesman; firmly insisted the bill, together ith the economy measure of $238,000,000 which reached the senate shortly before midnight would accomplish that purpose. BEXD. Ore., May 31 (AP) Three. Dallas, Ore., residents were injured seriously late Monday in an automobile accident on the Dalles-California highway near the Crooked River gorge. E. V. Dalton, Dallas furniture dealer, and lis wife and niece. Ellen Davis, suffered fractured bones and probably internal In juries. Mary Ellen Dalton, daugh-' ter of Mr. and Mrs.' Dalton, es caped injury." - Miss Davis was hurled from the automobile and fell between a spare tire and a front fender. She was extricated with difficulty. The three injured people were taken to a Redmond hospital and Dalton's condition this afternoon was still considered , critical. The accident was attributed to a front tire blowout. Melville Dollar DALLAS BESlOEIifTS INJURED SERIOUSLY Discovered Dead Of Heart Attack VANCOUVER, B. C, May II: ' (AP) A. Melville Dollar. It. noted shipping man of the Pacific coast and son of the late Captain Robert Dollar, waa found dead tn the garage at his homo tonight, appsrently n victim of n heart attack. ' . . rhyalcians who were santmoced said ho had been treated fey tb r past two ears for Set trouble, and they biileved ho haf heea stricken again after he had step- . ped Into the garage. - T Dollar head d the Canadian . American Shipping company, with . headquarters hero. ' Has . father : passed away tn Ian Rafael, CaL Mar It.; !. -