.. . - if- -- - . - . ' - t - SERVICE - WEATHER Fair and contlaaed warm today and Wednesdays Max. Temp, Monday 87, Mln. 40, river -S feet, dear, north wind. We guarantee oar carrier service. If your paper does not arrive by 0:15,' call 9101 and a copy will be delivered at once. ' i FOUNDED 1051 EIGHTY-SECOND YEAR Salem, Oregon. Tuesday Morning:, September 6, 1932 No. 133, ON COUNTY rn h A r DEBT SLASHING Amount and Percentage of Reduction are Highest Is Holman Report $340,000 Paid, off in Last Year to Remove Last Bond Obligation While 32 of the 36 counties in Oregon reduced their bonded in debtedness daring the btennluni which ended July 1. 1932. Mar ion county's decrease was greater than any other both in amount and percentage, according to a report lust released by State Treasurer Holman. Marion county's percentage re duction was seven-tenths of 1 per cent of the assessed valuation Marion county also joined with Josephine, Polk, Linn, Umatijla and Washington counties in elim inating all bonded debt. "No county has an indebtedness for road and bridge purposes equal to the constitutional limlta tion of 5 per cent of its valua tion "Fifteen counties showed slight increases In debt rations," said Holman. "In six instances the in creases were due to declines in assessed valuations rather than to actual Increases in outstanding obligations "Counties which increased their Indebtedness during the two years were Multnomah and Coos. Bonds Issued amounted to $2,450,000 and $300,000 respectivejy. Joins Counties With No Bond Obligations "Josephine, Linn. Marion, Polk Umatilla and Washington coun- ties have no bonded indebtedness Douglas county had a bonded in debtedness of $300,000 which was offset by a sinking fund of equa amount. "Reports indicate that within the next two years Clatsop and Columbia counties will be includ ed In the list of those without in debtedness. "Ten counties have indebtedr ness of less than 1 per cent of their assessed valuations, compar ed with an average of 2.38 per cent for all sections of the state, After deducting increases for Coos and Multnomah counties, the re- mainder reduced Indebtedness during the last biennlum by a total of $1,371,161.25. Special Mention of Thbt County Made "Through retirement of $340,i- 000 road bonds during the two year period. Marion county ac- complished the largest debt rer and authorities tonight said they Fraternis clubs will be selling the ductlon of any county. Marion were making little progress in ticket to the drum corps' enter countv anticinated payment 6t Hi..oru. talnment from today on. Tickets $170,000 in bonds due July 15, 1933, by retiring them July 15 1932. Other counties that have mauo reuui:LiUU3 01 uiuie mail 1100.000 are Baker. Clackamasi i ' - i Clatsop, Douglas, Klamath, Lane; tion, Wasco and Yamhill. Percentage reductions, which J are affected by changes in asJ j sessed valuations as well as by changes In debt status, were high4 est in Marion county with seven tenths of 1 per cent. Others close-. ly following were Wheeler, Lin- coin and Wasco. Reductions in f iVr?"'; Douglas, Klamath, Lane, Tilla mook, Union, Wallowa and Yam hill ranged from 48-100 to 10-10 of 1 per cent of the respective as-i sessed valuation of the counties. Despite tax delinquencies, moat of the counties in eastern Ore gon reduced their indebtedness during the last two years, the re port pointed out. Holman declared himself in fai vor of retirement . of bonds through purchase prior to matur ity dates to obviate necessity of tax levies for debt service. Reichle Chosen Head of Oregon nfl!1i JccrM aflnn tow- Albert D- Graham. 50, chalr Ueai JlSSOCiailOn man ot the First National bank of J. O. Reichle of Portland was elected president of the Oregon Association for the Deaf at the closing session ot the biennial convention at the state school for the deaf here yesterday afternoon. was named vice-president. Miles Sanders of Portland, secretary, and Byrd L. Craven of Portland, treasurer. ' f Sunay afternoon approximately! AA - .41..J.J . 1 of Portland, missionary to the deaf, conducted religions services. rt . vv i OOreil Will i , DC? . - m j rrt J 1 Arraigned 1 oday T- riv : vt i In Oiaymfif CaS6 f O - . 2j Melvin Sorell, 21, who late Fri day shot and fatally Injured his father, Leon D. Sorell, '4 8. will be arraigned In justice court here to day on a first-degree murder charge, District Attorney Carson announced yesterday. j Funeral., services for the elder Sorell were held in Salem yester , day with all members ot the fam She's Winner in Beauty Contest A 'Hi :- If, 1 r 1 ."J. luuu"i uioduc -ua Jicugw el,V 2HKyla 2W' !. 8h,own1Jst mi .vj:i one ujiu utnrii ucunrou uio i (rlnnAH .m aBAM V. A r-A I in Los Angeles. Leona, who wa 8i?.hA'. C",e pounds, 12 ounces. And isn't she a peach? IS E Bem. Who Recent IV Married - - - - J , jean nanow, is r-ouna Victim of Bullet HOLLYWOOD, Cal., Sept. 5 (AP) A bullet through the head last night or today ended the life of Paul Bern, motion picture ox ecutive and writer, in the idyllic home he gave Jean Harlow, blonde screen actress, when they were married two months ago. Police said it aa an unques tionable case of suicide, Miss Harlow was visiting her parents. Mr. and Mrs. Marino Bel lo. when the act was coWmttted Bern had failed to keep a dinner annointment at the Ttno hnm i last night, informing his wife by telenhone. according to anthnri- I ties, that he wished to be alone. Irving Thalberg, production ex ecutive of the Metro-Goldwyu- Mayer studios, who was called to the home in Benedict canyon by a hiitler who fnnnd th hndv. ilo- nipd thre had hpp a diurrpo. mont hPtvn Pa and hJ wir rhw nnumit . in. creased. they declared, by a note in Bern.g handwriting addressed fia Harlnw nxA rAarilnff r.Mntt r.AA.. ttmavMMA4Aiw icai est urzai . uiuvi .uiiaiqij , this is the only way to make good the frightrul wrong I have done you, and to wipe out my abject humiliation. I love you. Paul." A postscript said: "You understand last night was only a comedy." Miss Harlow, reported hysterl cal and un(Jer the care of a phy. sician, was unable to advance an explanation TRIPLE RESCUE 13 El ATLANTIC CITY, N. J Sept. 5 (AP) A thrilling triple rescue in which a prominent banker, a young woman novelist, and an un identified girl were saved from drowning in the rough surf today was witnessed by thousands of on lookers from the board walk and beach. Swept out to sea by the under- Baltimore, shouted for help and Life Guards Allen Ireland and Jay Mayer went out to his aid In their life boat. As they neared him. Graham was. going down for the second time, but he maintained presence of mind and grabbed the life preserver tossed to him by the jB,WM; While the guards were thus en gaged, Joan Lowell, prominent novelist and playwright, who was 1 i .. ii ,a ... v.i . J. a , I IU1U IUO KUttlUa AUAtUOUMWVMJ - ;"n " a - rowed .ashore. In the meantime, a New Hope, Pa., girl, was swimming near the I scene ot the rescue, became ex- hausted and started to sink Life I Guards Harvey Fenner ana Mai- coim Hughe., who had put out m I isomer oosi, . uww net " 1 aboard and took her to the beach, I am TTaw fiimA - v nest All. 1 l7U V Aiv hvw I nounced. KXORR REELECTED SEATTLE, Sept. 5. (AP) The Rev. Alfred C. ; Knorr, of Aurora. Ore., president' ot - the northwest district Luther 'league. was reelected today at a. business session of -the third annual .con ACTRESS 1 FOUND VIEW 1 BY CROWD Kjitle Regarded as Oregon's Best Bet in Competition at Legion Conclave Concert Thursday Night to Give Home People Good Chance to Assist One week from tomorrow Capi tal post drum corps will march onto Multnomah field, Portland, its blue and gold uniforms das iling crowded stands, to seek its seventh state championship and make its fourth try at the na tional honors. The corps has lost but one of its state competitions. that a t loAfnrA ! 1049. second place in the nationaPcon teat at Ran Antnnln T.-r b. year, and fifth at Louisville. Ky.. q 1 9 2 1 TVrt lanflfflta irDr a AnmnatlrlAVi , v v, V . v .T A ' the Oregon winners will be de- will last all day. If Salem places in the first 12 corps there, it will go into its third national finals at 8 o'clock that night Portland to See Much Of Salem's Musicians Portlanders and the national convention tnousanas win see much of Capital post corps. Sa lem s marching ambassadors will go to the Rose City next Sunday and remain there until the con vention ends the following Thurs Tlju.. U.- !, - . 111 be seen at theatres, in the con vention-parade on Tuesday, and heard over the radio. Whether attending the big con vention or not, residents of Salem and vicinity will have opportunity to see the drum corps demon strate how it will toot its bugles, roll its drums and strut through its drills in the national compe- tion. Capital post's pride will go through their full national com petition program at the public entertainment under the flood lights on Sweetland field at o'v..ock Thursday night. Bagpipes of. the Canadian Kilt Ies from Vancouver, Wash., will delight the good Scotch listeners in tne audience with their music "a me American region junior band, directed by W. H.H Mc Laughlin, will reveal the progress it has made in recent months. By way of variety, there will be bi cycle races. A committee of 80 representa tives of the chamber of commerce, Ad, Rotary, Kiwanls, Lions and also will be on sale at the cham be of commerce. The corps has 5,h6fn wa ?f "na.nciF lt8 IUJoy owi-aM tion. The drum corps members will profit greatly from their practice on Multnomah field last Satur day night. Manager Tom Hill said last night. On a strange field, the marchers found ragged edges in their drills which now will be ironed out. Practicing every night, the drummers and buglers are point ing for the national championship this year with high hopes and confidence. JUNIOR BAND HEARD . The American Legion junior band Sunday afternoon entertain ed around 1200 pickers La the , Horst yards. The boy musicians ! will give another program at i camp three on Friday night . Oregon's 1 Drum corpe of Capital Post No. (-'tv- !-t we-: -x-iwet x : . .-..-av..; :"-:..: ..- .i"n... -j, MjriYrfc " i ss'iiin ; tarrnv -.-:' .. V ..-v... ' A- , . v; vention next week. The personnel: Back tow, left to' right: Gas Burgy, Frank Whitteroore, assistant manager; R D. Bart en, George Chapman, H. E. Shade. Dr. W. W. Looney and Boy Smith. Middle row:S. B. McDonald,' Haddea Bond, WBlIam McRae, Ralph Mason, Henry Ahrens, Tom IUI1, manager; Frank Stransbaugh and II. R. M Rate White. Front row: Dr. C. W. Davis, Ralph Baldwin, quartermas ter; Paul Hand, James Flood, M. Clifford Moynihan, Charles Whit temore, dram major; Rody Scholta. music tastrnctor;' Harry Gnstaf- son and Curtis Johnson. Not Dutra Defeats Medalist Jinx - -- - - - yW. ; X-Al V r Olin Dutra, "windjammer" from Santa Monica, Cal., is one golf er who overcame that tradition that the medalist Is never the champion. He beat the field by four strokes In the P. O. A. tourney at St. Paul, Minn., and then kept going to achieve the championship, beating Frank Walsh of Chicago Sunday, 4 and 8. OF JAMES HELM Anxiety Deepens; son Goes To San Francisco to Seek Missing man Anxiety of friends here deep ened Monday as no word came to explain the apparent disappear ance of James G. Heltsel, promin ent local attorney, who was not aboard the liner Admiral Farra gut when it left San Francisco Saturday. He had started from Portland on that vessel, bound for San Diego. If Mr. Heltiel had simply miss ed the boat at San Francisco, as was hoped at first, two days would have given him plenty of time to discover that his absence had been noted and to report to authorities there or wire reassur ances to his family here. The family had received no word up to late Monday night His son, John Heltxel. left Mon day night for San Francisco to pick up the traces and attempt to locate the missing man. The Associated Press wire which brought the first news here that Mr. Heltzel was missing, supplied no additional Informa tion Monday night. The Admiral Farragut is not due at San Diego until sometime today. James Q. Heltzel has long been one of the leaders of the Marion county bar. He served as a mem ber of the legislature a number of years ago, and was president of the county bar association last year. He has enjoyed one of the largest legal practices in the city, maintaining his offices in the Ladd and Bu3h bank building. Youth Collapses On Street Here J. W. Kennedy of St. Johns college, Greymore, N. Y., col lapsed while leaning against the railing at the Masor'.c building Sunday night. He was taken to the Deaconess hospital where It was found he was suffering from a recent partial operation for mastoid. He was released that night The young man was headed for Eugene where his father lives. NO WORD KID Hope in National Drum Corps Contest - , j tJ .U3 cX r. 1 -,U"V f . ., . O, American Legioa which la expecte in picture: I a. Hamuton, Ljle Henderson, Ray DeGalre, Gustavo HAND IRK TO ON OOAD JOBS Contracts and Selection of i Important Projects new Policy Says Scott He and Marshall Dana put On Debate at Meeting Of County's Clubs PORTLAND, Ore., Sept. (AP); Force account hand labor will be abandoned by the state highway department in favor of the contract plan in Its new pro gram, which calls for the expendi ture of about $300,000 of federal funds on the Oregon highways, Leslie M. Scott, chairman ot the highway commission announced today. Scott cited three reasons for change in policy: Inefficiency of hand , labor, . low percentage of utility of some improvements mad cinder thai system, and Jed eral jg nlations which require the conlrtplanJ "Oregon -has spent $1,500,000 this year for hand labor relief em ployment by force account," Scott said. "One-half that sum would have done the same wdrk on a competitive contract basis. But the present usable value of the work done is much less; prob ably not more than 10 per cent of the sum expended. Relief em ployment by force account, spread widely over the state on many projects, as was done last winter and spring, is deplorably wasteful ot public funds; consumes careful economics made in other direc tions; causes work to' be done where it is not needed for practi cable purposes, or will not be used by the highway system tor many years. Hand Work Deemed Highly Inefficient "The efficiency of such work ranged from 30 to 70 per cent and averaged 50 per cent or less, and most of the work was placed (Turn to Page 2, Col. 1) PORTLAND. Ore.. Sept. 5 (AP) Gideons in Oregon and Washington, at today's business meeting of their annual conven tion, chose Taroma for the 1933 convention city. Gordon H. Fraser, of Portland, was elected president of Gideons in Oregon and S. E. Hill, of Ta coma, was elected president for Washington. The combined Oregon and Washington conventions resolved today to repudiate action of both major political parties in regard to prohibition and voted to sup port the 19th amendment. Other Oregon etate officers chosen included Aaron Olsen, Sa lem, president of the Salem camp, vice-president for bible distribu tion; Daniel C. Schlrman, Salem, secretary-treasurer. LINER CKEW MUTINEE8 ROTTERDAM. Holland. Tues day, Sept. 6 (AP) The liner Rotterdam arrived In the harbor at 2:35 a. m. today escorted by the mine-layer Meenant, and four policemen went aboard to serve I arrest orders on the crew charg 1 ing insubordination. 1BA .6 . . . d to make a strong showing ta the mi FROM SALEM G DBS OFFICERS Higher Income Levy One Way to Prevent Direct Pr operty Tax Or. : State may Ignore Deficit, . Overestimate 1933 Receipts Purposely; Injustice Being Done to Some Departments By SHELDON F. SACKETT GOVERNOR JULIUS L. MEIER, Budget Director Henry H&nzen and the state tax, commission have a sword of Androcles over their head as the time approaches for the 1933 tax levy, to be made in December. The sword is the probable property tax levy which will be required for state expenses in 1933. To restore such taxes ,, omeana that the property-tax abo nun LEE ON NEXT TEAS Lawyer is Sole Nominee for Commander; Rufe White Gets Second lob Unopposed in- hut night's final nominations for officers of Cap ital Post No. 9. American Legion, Allan G. Carson will become the new commander after the post election on September 19. There Is but one nominee for each of the eight post offices. Through the withdrawal of Tom Hill, drum corps manager who was nominated for vice-command er last month. H. R, "Rufe White, nominated last night, will receive the ballot for that post, and Adjutant William Bllven, in cumbent, will be reelected. Ar thur Bates again will be finance officer, since M. Clifford Moynl han has withdrawn from the run nlng. Other nominees are: Chaplain. Rev. G. W. Rutsch; sergeant-at-arms. O. E. Palm a teer; historian, Joseph Marcroft; quartermaster. George Feller: executive committeemen, five to be elected, Irl S. McSherry, Carl Gabrlelson. White, Waldo Hills, Douglas McKay, King Bartlett. Hill, Palmatcer. and Moynihan. Oliver Huston. R. S. Keene and Carl Stelwer declined their nom inations. " Since the delegates were in structed last night to vote as i unit at the state convention at Portland Friday and Saturday of this week, Capital Post will throw its full strength behind im mediate payment of the remain der of veterans' adjusted1 service certificates. With the Elks' temple refusing to catch fire and again frustrate the post's plans. R. R. "Bob' Boardman told the legionnaires what he thought of the Olympic games at Los Angeles. Aurora Case to x Come Up Today Before Wilson circuit court will reconvene here today with Judge Wilson of Wasco county presiding. ' First case to come up for trial will be the one involving B. F. Giesy and Zeno Schwab, who are under nine indictments charging irregularities in connection with the operation of the defunct Au rora State bank, and the Wil lamette Valley Mortgage com pany. Later in the week, Charles R Archerd, ex - Salem Implement dealer, will face trial on a charge ot issuing fraudulent warehouse receipts. ' 4, Ik :! 5v ,... - . Kennell-EUls Pbota. annual contest at the national coa- rtkaoa. B. O. MlecKer ana , Kasseu lition of if 3 2 was a temporary, probably onsound gesture. To re store such taxes means added bur den for the realty owner who can stand them less in 193$ than in 1933. Furthermore to bring back property taxes means that many Oregon counties,, now so destitute ot cash funds that warrants are unpaid for several years back and are selling at large discounts, will be further embarrassed to remain anywhere near solvent. The state tax commission, ex- nr i it.i.mui.. tmA and expenditure, undoubtedly re- allies the problem the state faces. ;r .w u It is very doubtful if Governor .f.J rd- Jh.e boaJd adjonra Meler forsees the travlty of the i,wi,h th "tatement that east Impending situation while Budget ? ncto would be invited . . Here f nr mrt foran nm Director Hansen has for months been talking ot balancing the 1932 budget through expenditure Ittn" m f h VP reduction, and of continuing the te?t",.cfv?r- rr ,tb'eVeB? . l process in 1933 by ruthless nse of the economy axe. Increasing Income Tax Might Do It It Is the firm belief ot this writer that a state tax on proper ty to the extent of two to four mills must be restored in the 1933 state levy unless one ot the fol lowing alternatives are consumat- ed 1. Increase of the state tax on incomes to eight per cent and re duction of the exemption provis ions. 2. Open avoidance of the ser ious deficit in the state's finances and increase of that deficit by a plain overestimate of state funds to come in by Indirect and income taxes in 1933. 3. Substitution of new taxes, in lieu of property taxes, to be de termined by a special session of the legislature held In December, 1932. before the state tax com mission makes the 1933 levy. State bonae Opinion Lacking Snpport The off-hand feeling expressed around the statehouse is that suf ficient budget reduction can be made In 1933 and 1934 to prevent any restoration of property taxes. How well does this opinion tally with the facts? For the year 1933, the proba ble minimum financial require ments of the state will be the fol lowing: First-half of 13.500.000 1933-34 budget Higher education and other millage taxes. 1,400,000 Bonus levy, minimum possibility 650,000 15,450.000 Tflese estimates make no pro vision for retiring any of the state's deficit which as stated pre viously will be more than 33, 000,000 at the end of 1932. The estimated budget for the first half of the new biennlum certainly al lows for every conceivable cut which can be made. The 1931-32 budget for state outgo was $9. 800,000 when the legislature fin ished its work. It Is hardly con celvable that a reduction tor the next biennlum could be made to more than $7,000,000 or nearly a 30 per cent cut. It will be re markable if state expenses are thus curtailed. Most of Millagea Cannot be Altered The above provision, for higher education and other millages Im- posed by popular vote is based on a reduced valuation for 1932 but beyond the slight reducUon there- by occasioned the millages cannot be altered. They are Imposed by law and mast be provided for by the state tax commission. There will be agitation that the state continue to waive any provision for payment from the general fund to the state bonus commlsslon. Such ignoring of the plain provisions of the law was made hi December, 1931; It can scarcely be continued this levy time. The state bonus commis sion has bond maturities within the period . September 1, 1932. to December SI. 1932. which amount to $3,000,000. The sink fng fond of the commission only $1,200,000. The monthly Income of the commission ot ap- (Turn to Page 2, CoL C) STATE TAX RECEIPTS FOR YEAR 1933 AS DETERMINED BT THE ESTIMATES AVAILABLE AUGUST 1, 1032 Estimate and Artaal Deficit Bndget Surplus from 1930 ln - come and e z e I s e taxes - $ MS.000.0f $ S4S.000.00 $ Revenue from 'Income laws S.104.100.99 ,$3,71.23 1,201,029.7c Miscellaneous Income- l,I54.0t.0 2,000,128.21 SS3.S71.7f Savings available tor treasury - savtags deducted In 1931 NIT INCREASE IN DEFICIT. Deficit end ef 19S1 DEFICIT END OF 1911- CHANCELLOR OF STATE SC1P.LS IYBEPIEII Dr. Kerr Again Looming ss Probability Although Opposition Seen. Resignation of Hal! Said Harbinger; Zook not Likely to get it Much speculation abonnda the outcome of the meeting of ta " siaie ooara of higher education In Portland today. The ntajer Item of business on the docket will be the election of a eWn cellor.'That Item may have been practically decided last night in the usual pre-meetlng conferences held In hotel rooms in the cite. At its last meeting the board deadlocked on the election ct President W. J. Kerr of CorvaU 11s to the position. Four members were for him: four noitll against, with the Chairman, c I 1rr' favorable but unwilling ta Alter me board adjourned it resign if he were elected, claim- ing j was a "deal." .These m em bers are reported still In opposi tion, though whether they would carry out their threats to resign it Kerr , is now elected Is uncer tain. Hall Resignation Held Significant Dr. George F. Zook of Akron. O., visited j Oregon at the invita tion of the board last month. He left without getting any assurance he would be elected, although those who met him report be was much Interested" in the position here. The resignation of President' Hall of the university is interpret ed by the Portland papers ae clearing the way for the election of Kerr. It is doubtful however if Kerr Would accept unless be has a vote of alx of the nine members. Two are reported as bitter-enders" against Kerr E. C. Sammons of Portland .and Mrs. Cornelia Marvin Pierce ef LaGrande. The other two are F. E. Callister and Albert Bureftu Whether either of them has re laxed opposition enough to jota with the others will be disclosed today. The indications are that Dr. Zook will not be named. Faced with the dire necessity of having some executive bead now that President Hall has resigned. the board may choose Dr. Kerr. Or It may renew its deadlock. THREE ARE KILLED IE PORTOLA. CaL, Sept. 5 (AP) -Three passengers were killed and the pilot probably fatally in jured when a sight-seeing place crashed during a take-off from Portola airport this evening. The dead are: Helen. 17,- and Virginia, 15, James, daughters of a Western Paclficemploye here, and Mauris Murray, 25, lumber mill employe living at Graeagle, 17 miles from Orovllle. With both legs broken and pos sible internal injuries, A. N. Hall. 40, the pilot was near death in a Portola hospital. News of the death of her tw daughters caused a heart attack which may prove fatal to Mrs. Jamea. her physlcUns said, I 1 I AT ilnrthnrcrzr 10 I .vra-rw fcv- I tZiincr Koffor vtfc.jJ6 Thrroini art Axrc riiy&lUallflVCia . George Miltonberger. If. fie Tamaraca street, is recoTorii rapidly from the injuries be re- eeived last Thursday when be fell from the roof of the Fraternal temnle building where be working. His condition Is "very fine", the attending physician re ported last night. Contrary to first belief, the youth did not suffer any Internal Injuries. He has a fractured Is I wrist and concussion of the brain. The physician said Kiuonoerr- er would not ne aoie to receive l visitors for a few days yet. $1,754,411.54 return leu $100,009 state levy- 927.147.11 SJ7.011.73 $2,4(1.911.10 $1.4.M2.ei CRASHES ily In attendance. vention. -