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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Sept. 9, 1932)
. '..'M l ; Ik, , ili CIRCUtATIONlllljl WEATHER Fair today and Saturday ' warmer , la interior; Max. IVap. Thursday T8, Mia. 4 7; ''pan dowdy, northerly wind. Average : Aug. '32 , Net paid, dally, Sanday,$736 uaaxM a. b. a , FOUNDCD 1851 EIGHTY-SECOND YEAR Salem, Oregon, Friday Morning, September 9, 1932 No. 12 7115 LDM1 FITS : STATUS SHAKY IFJ 79; SAYS Arthur Marsh, Ex-Director Testifies " Against Giesy, Schwab Judge Rules Evidence of -"Security's Value is Admissable Affairs of the Willamette. Val ley Mortgage Loan company were being described in testimony of fered In circuit court here yester day afternoon as the third day of the state's prosecution of Dr. B. P. Glesy and Zeno Schwab, officers of the defunct Aurora State bank, drew to a closed. Ar thur c; Marsh, for 25 years a certified public accountant, de clared the company's condition wasJ bad in 1928 and worse in 1929. He testified that he was a director of the organization for a short period. Schwab and Giesy both told him that ho could ob tain loans from the bank in times of necessity. Marsh testi fied. The highlight of the trial yes terday was a battle between Bar nett H. Goldstein, prosecutor, and Walter C. Wlnslow, counsel for the defense, over the admissibility of testimony regarding the value of collateral offered the bank as security for loans made the loan company. State Wins Important Battle Presiding Judge Wilson ruled that evidence of the value of the security was admissible in order for the state to prove the intent of the loaners in making the advance of money. Without the admission of evidence on this point, Judge' Wilson said he might have to keep the case from the jury jiecause of failure by the state to show intent in any allegedly illegal acts of Schwab and Giesy. Winslow took excep tion from "the ruling and all evi dence Introduced under it. Testimony introduced early In the day by TtnkhamGilberU de puty bank examiner, reported A. A. Schramm, stale examiner, as telling the Morning Oregonian, Portland newspaper, that the story it printed concerning the Aurora bank and the Willamette Valley Mortgage Loan company did much to hasten the bank's Insolvency. Taking of testimony proceeded lowly as attorneys for both sides fought out mooted legal points. Much of the testimony was complicated by technical terms and- reports. The audience filled the . courtroom throughout the day but did not overflow the room's capacity as in the murder trial cases which went on In August. All bids on the Paradise creek Red Bridge section of the Umpqua tighway near Elkton, have been rejected, it was announced at the state highway department today. The bids were opened at the last meeting of the highway commis sion held in Portland. New bids will be called for at the meeting September 28. Homer K. Johnson of Portland was low bidder for the job at $62,400. Other contracts to be awarded at the September meeting will in crease the value of awards to more than $700,000, highway de partment officials said. Projects to be let will be an nounced definitely next week. Leg ion Parade No Holiday for School Kiddies American Legion parade today, Tuesday, September 13. which re cently was proclaimed a state hol iday in a proclamation Issued by Governor Meier, will not be ob served as , a school holiday, Charles A. Howard, state superin tendent of schools announced to day. Howard said he had recom mended, through county school superintendents, that, on the re quest of parents, pupils who will nave an opportunity to attend the parade be excused from .. school without penalty or prejudice of any kind so far as the school Is concerned. , Egan Receives short Respite SAN FRANCISCO,'1 Sept. 8 - (AP) Frank J. Egan, former public defender and his former convict friend, Albert TineJn. won a short respite here . today from me pronouncement ol Hie sen tences for the murder of Mrs. Jes sie scon liugnes. Because of a technically raised by Tlnnln'a at torney Nathan Cogblan, Superior Judge Frank H. Dunne postponed time for passing sentence until Saturday. - COMMISSION 1 I Personal Friend Of Hoover Lost - Colonel Raymond Robins, prom i inent prohl leader, for whose safety anxiety is felt, following his failure to appear for an ap pointment with the president. Mrs. Robins believes he may be the victim of Florida bootleg gers, ag-ainst whom be has worked. DOT GUILTY, PLEft IN CBY CASE i I " Hearing for Mailing and Ray of Woodburn set for Sept. 23 Here Ray Mailing and Dean Ray, op erators of the Woodburn cannery, today pleaded not guilty before Judge Miller Hayden of the Sa lem justice court on a charge of dumping refuse and waste matter into the Pudding river. The hear ing was set for September 23. 'Mailing and Ray did not appear in; court here, but entered plea through their attorney, William Hare of Hlllsboro. It was alleged that thousands of! fish have been destroyed as the result of chemicals and acids de posited in the stream near the Wpodburn-Mt. Angel bridge. State pqlice investigated complaints last Saturday, and later reported their findings to the state fish commission. The arrests followed. Estimates of the number of bass, trout, crawfish and minnows floating dead on the surface of the river or cast up on the bank, exceeded 10,000. These estimates were made by the Astoria Rod and Gun club and other organ izations. Samples of water from the stream were taken yesterday by Art Fish, assistant superintendent of the state fish commission, and sent to the Oregon State college for analysis. ;A majority of the complaints wre said to have been lodged by sportsmen, farmers and resort owners. Conditions were said to halve been particularly bad on La bor day, when hundreds of per sons gathered along the stream in search of recreation. The cannery officials refused toj make any statement. ! Warning was issued last year toj the cannerymen, it is said, to install a sewage system that wbuld avoid just such a condition a had not come about. Bennett Drops Senator's Race PORTLAND, Ore.. Sept. 8 (AP) J. E. Bennett, state sen ator, announced today he was withdrawing as a candidate for r-election to the upper house on the republican ticket in order that nothing might disturb his cam paign for election to the Portland city commission. 'Ggdn SURRENDERS TO SHERIFF PORTLAND, Sept, 8. (AP) ?obby Evans, 38, described by po- ce as a gambler and sports pro moter, was arreste-I on a burglary charge In connection with the al leged theft last April 21 of recall petitions directed against several cjty officials, including Mayor George L. Baker. I Evans surrendered at the sher iff's office and was released soon afterward under $5000 bond. Dis trict Attorney Lotus L. Langley, Who signed the complaint against Evans, refused to discuss the evi dence in the case. CONDUCT SUSPECTED MARSHFIELD, Sept. 8. ;(AP) The Gold Beach cham ber of eommeroo at .a special meeting last night voted undi vided support to Sheriff J. H. Turner and District Attorney Grant J. Williams, both of Cur T7 county, pursuant to a sum mary hearing of the conduct of these officers ordered for Mon day, September 12, by Governor Meier. FISHER ATTACKED OFFICER I OREGON CITY. Ore.. Sent, i -j-A circuit cfrvt Jury today con victed Kenneth Fisher., of Park Place of assault and battery upon """"v J- T.v.-.v ' .-.-.'AV.v .-.V.V '. " ...-..... v.-.v..v.v. V W"s. VIOLENCE IN FARM STRIKE GOMES TO END Midwest ftnvornnrc (rnf tr At Sioux Farmer City on Relief Potato Growers in Wyoming J Refuse to Harvest ere Price Goes up SIOUX CITY. la., Sept. 8 (AP) Assurances of farmers' holiday leaders that violence wjy enaea in ineir Dattie ror nig new prices came today as mid-western governors or their representatives gathered here for a conference to work out a program of agricul tural relief. Governor Warren E. Green of soutn uaKoia wno canea tne con ference, arrived here today with Attorney General M. Q. Sharpe to lay final plans for tomorrow's meeting. Governor Green said the con ference would serve as a clearing house for Ideals of the various, executives as well as numerous farm leaders expected to attend. Milo Reno of Des Moines, pres ident of the National Farm Holi day association, will not be pres ent. He was in Oklahoma today attending an organization meet-, lng of the association. President Says ; Public Awakened 1 Reno, in a speech at Oklahoma City declared that disturbances incidental to early strike activi ties about Sioux City, Council Bluffs and Des Moines "are over now." He said that the holiday idea has been successful in that the "main part of its purpose has been accomplished." "The public conscience has been awakened to the conditions of the farmers of the nation," Reno said. Referring to the disturbances he said "It is natural that in any movement like this there will be some occurrences that do not have the sanction of the leaders." ! Assurances came to Gov. Floyd B. Olson of Minnesota by holiday leaders, that, if the strike Is call ed In Minnesota, "It will be an en deavor to keep products off mar kets through persuasion and not through violence." POWELL. Wyo., Sept. 8 (AP) Three hundred potato growers of the Powell valley today an nounced their determination to keep their potato crop in the ground and refuse all prospective purchasers until the market price is what they think it should be. Prices Rising And Men Going Back to Work NEW YORK, Sept. S (AP) Officials of the Celanese corpora tion of America announced today that approximately 1000 men have been added to full time work at its Cumberland, Md. plant be cause of an! increase in demand for yarns and fabrics. CHICAGO, Sept. 8 (AP) A new high price for 1932 was set today when a Chicago stock ex change seat was sold for $7500. The amount was $1500 more than the previous high for the year. NEW YORK, Sept. 8 (AP) Bradstreets index for wholesale food prices for the week ended September 6 showed an increase of two cents to $1.79. The index for the previous week was $1.77. Petition Thief Caught Curry Officials Backed Assaulter Convicted Becken Drinks Poison the person of State Police Ser geant Meads. Fisher was Indicted on a charge of assault with Intent to kill but was convicted of the lesser charge. He will be sentenc ed Saturday. DIES AT FRDSXD'S HOME ST. HELENS. Ore, Sept. S (AP) Otto Becken, 29, killed himself last night, police said, Jy drinking poison while visiting at a friend's home. Becken left the home of his father and mother about 6 o'clock. At the friend's home he wenjt to the bathroom and when he returned he announc ed he had taken poison. He was dead when the doctor arrived. FRUIT MARKET SLOW CORVALLIS, Ore., Sept. 8 (AP) Low buying power in east ern consuming centers continued during the past week to hinder the movement of western fruits and vegetables to market, said a fruit and vegetable review Is sued here today. Hundreds of car loads - of produce . are . being abandoned nnharrested. The only major bright spots in the market geles. insurance man and Bern's were firmer potato prices in the insurance adviser. He was at east and better prices on green tending a 'convention here 'and peas In Colorado. ; , ! left today for Los Angeles. - Search Fails For Trace of Jim HeltzelT Good aid In earcSria for bit father, James QV HeltseCSalem attorney who disappeared Satur day . while on a sea trl to San Diego has failed to reveal any traces of his whereabouts, John Hel1"1. a law partner, has -Mva vud tauiit v search is being continued. Hope for discovering Heltsel alive dwindled toward the sero point yesterday as San Francisco police reported fear that he may faJlen overboard from the s. Q lilmlVAl ITO 1M.O aril f haf ap l ar rived at the bay city. He was last seen aboard the ship early last Friday. RE BEST IN YEARS Timber Fire Reported Near Jefferson; Fought by Many Farmers A bad forest fire was raging near the highway three miles south of Jefferson yesterday aft ernoon, a state policeman at the scene reported to headquarters here. Lynn Cronemlller, state for ester, was advised of the situa tion. The state officer reported that all farmers in the vicinity had turned out to fight the blaze but at 5 o'clock they had not been able to bring It under control. PORTLAND, Ore., Sept. 8. (AP) Fire conditions in nation al forests in Oregon and Washing ton have been much more favor able during the present season than for many years past, C. J. Buck, regional forester, said to day. Public i. Given Credit Buck attributed the improve ment to greater care on the part of the forest-using public, to more favorable weather and to better and quicker work on the part of the forest protective forces. He pointed out. however, that the fire season is by no means over and that the danger Is not past. Up to September 1, Buck said, a total of 708 fires had been re ported this year, as compared with 1187 a year ago. By Sept. 1, last year, 60,235 acres of nation al forest lands had been burned while this year's total Sept. 1 was 7777 acres. Only 50 fires of more than ten acres in extent had been reported this year compared with 183 a year ago. Fire fighting costs so far this season have been only $73,927, while last year the cost was $378, 743. T NEW YORK, Sept. 8. (AP) Cotton tumbled $5 a bale today, one of the sharpest declines of the year, on appearance of the gov I ernment's crop estimate, which was some 500,000 bales larger than traders had anticipated. This was a blow to the stock market, where bulls were finding rather rough going anyhow, and prices were churning about in fe verish trading. Final prices dis closed a long list of losses of $1 to $4 a share, which wiped out most of yesterday's advance. Other markets, however, were not seriously unsettled by the ac tion of cotton and shares. The bond market closed barely changed. Wheat lost about a cent a bushel at Chicago, but changes in most staples were relatively unimpor tant. Cotton's action was the reverse of the upswing a month ago, when the government s estimate of the crop placed it about 1,000,000 bales below what traders were ex- ' pecting, sending prices up about $5 a bale. LOS ANGELES, Sept I (AP) While the glamorous Jean Har low of the films remained at home, still ill of grief and shock, a coroner's Jury decided today that her husband, Paul Bern. 42. twice her age, killed himself for a reason undetermined. me only testimonial hint of a motive was that the motion pic ture producer was nervous and run down ana may nave been a victim of melancholia Induced by a physical deficiency. This theory was expressed by Frank Webb, assistant county au topsy surgeon. COLORADO SPRINGS, Colo.. Sept. 8 (AP) ABsertlon -that Paul Bern, suicide husband of Jean Harlow, motion picture ac tress, mi married to . another woman from whom he was not divorced, was made here today by I George- G. Clark en of Los An t coins On FALLS Oil C BLOW'S SPOUSE HAD MOTHER WIFE LEAGUE GROUP URGES CHINESE SOVEREIGNTY Manchukuoan Autonomy With Japanese Advisors Is Added Suggestion Return to 1931 Status Held Impossible, Native Police Planned TOKYO, Sept. 9 (Friday) (AP) An arrangement recognii lng China's sovereignty in Man churia but proposing the estab lishment of its autonomy under Japanese advisors, official sources here said today, was recommend ed in the report of the League of Nations inquiry commission which is now filed with league headquarters at Geneva. These sources sajd the infor mation on the contents of .the report, which the commission re fused to reveal until it could be published from Geneva, came from Japanese representatives at Peiping who transmitted what purportedto be a resume of the report. The plan for establishment of an autonomous government, the report said, wa3 to be worked out in negotiations by China and Japan with representatives of Manchuria and observers repre senting the league, according to the recommendation. The chapter entitled "re-elections," it said, gives it as the opinion of the commission that a return to the status before the Japanese campaign which began on September 19, 1931, was im possible, as well as Japanese an nexation of the territory or the establishment of a Japanese pro tectorate. The report said it also recom mended complete demilitarization of Manchuria and the establish ment of a native police force un der foreign supervision. It quoted one member of the commission as saying in effect that Japan won every point in the report as finally framed and that it was revised in many Instances to take Japanese contentions into consideration. The v foreign office spokesman, however, when asked whether the purported report would be accept able to Japan, replied that Japan's recognition of Manchukuo next week would be her answer to any proposals to restore Chinese sov ereignty in Manchuria. The foreign office instructed the Japanese representatives at Geneva to ask the league to with hold publication of the report un til the Japanese government bad studied It and prepared observa tions on it. This, It was said, would require from four to six weks. SALEM LEGION MEN E While preparations were be ing made here yesterday for reg istration of American Legion nalres and guests headed for the national convention at Port land, organization of the state convention was going on in the Rose City. Douglas McKay, mem ber of the committee on commit tees, returned here last night with the announcement three more Salem men had received appointments. Miller B. Hayden. justice of the peace, was named an alter nate on the important legislative committee, Irl S. McSherry, Cap! tal Post commander, was chos en chairman of the post activities and organization committee and J. T. Delaney, vice-commander placed on the finance committee Registration booths, where cer tificates of registration for the national convention may be ex changed for badges and tickets, were set in front of the Senator hotel and Cadwell & Parker store yesterday. Legion members and the families may still register there. First of the convention-bound groups of legionnaires are ex pected to pass through here to day. It has been estimated that 20,000 will pass through Salem. State College Heads Discuss Work with Kerr CORVALLIS. Ore., Sept. 8 (AP) Dr. W. J. Kerr, chancellor of higher education in Oregon, re turned to Corvallls today and dis cussed with the Oregon State col lege administrative council poli cies '. of the Immediate future. Later in the day he and Mrs. Kerr went to Eugene to attend the fu neral of Mrs. P. L. Campbell, wid ow of the former president of the University of Oregon. -' Messages of congratula 1 1 o a a continued to pour into Dr." Kerr's office here today. - x GET MM IIS Who Says the American Legion Won't Have At least this looks like fun. The ii r O arma have gotten playful at Portland, and here they are hoisting Aaron Frank, chairman of the -Portland reception committee. Left is Bill Browne of Portland, convention sergeant-at-arms, and Port land's huskiest cop, six feet five,- 250 pounds; right. Bowman Elder, national treasurer, of Indianaftolis. VISITOR mm If IPS IMPROVED Over 1000 Persons Witness Capital Post men in Final Showing "The drum corps showed itself much more accomplished, with more snap and verve than at the national convention at Detroit last year," declared Dr. C. L. George of New York, who witnessed Capi tal post's corps in action both at Sweetland field last night and at last year's convention. The doctor, an old schoolmate of Roy S. "Spec" Keene, Willamette univer sity coach, came west for recrea tion and to attend the Portland convention next week. A crowd that filled the Sweet land field grandstand viewed the drum corps in action, the junior Legion and Salem kiltie .bands and the bicycle races on the pro gram. Gate receipts of $117, to gether with $115 from tickets sold ahead of time, will provide a fund barely short of the $250 the spon soring organizations sought to raise to finance the corps' trip to Portland. Rudy Schulz, music instructor for the past six years, noted mark ed improvement in the alignment achieved by the marching corps last night. This bad been one of Its weak spots, he said. The music and drumming he declared "as good as ever could be expected." Wlndup practices of the corps will be held tonight and Saturday night at Sweotland field. The corps will go to Portland Monday. In this year's competition will be around 75 corps, half of the num ber last year. The Salem players are cheered by the fact that the crack Racine, Wis., and Miami, Fla., corps will not enter this year. An added feature of the pro gram last night was a represen tation of the drum corps of 1776, consisting of H. R. "Rufe" White playing the fife, Tom Hill the bass . drum and Ralph Baldwin handling the snare. Fear Expressed Robins Victim of WASHINGTON, Sept 8. (AP) The strange disappearance of Colonel Raymond Robins, outspok en prohibitionist, since he agreed last week In New York to see President Hoover here Tuesday, was disclosed today at the White House and concern fer his safety deepened when Mrs. Robins in Maine expressed fear her husband had been killed by "Florida boot leggers." Shortly after White House of ficials expressed concern shared by President Hoover at the fail ure of efforts to locate Colonel Robins, the wife of the social economist telephoned the Associ ated Press here from Maine that he had received numerous threats of death nnless he stopped his pro hibition efforts. A close friend of President Hoover, Colonel Robins had ac cepted aa invitation to call on the ehlef executive at the White House Tuesday, when he planned to come nare irom new xorav .The. Invitation was extended through Walker H. Newton, one of the president' secretaries, who , telephoned Robins at the City club Its Usual Frolics? national treasurer and sergeant-at- raMmcs 'Summary and Disciplinary Action" Urged Against "Unfair Opponents" PORTLAND, Ore.. Sept. 8 (AP) Portland tonight had tak en on the appearance of a con vention elty with hundreds of delegates to the American Legion national convention to be held here next week already in the city. While convention officials were busy completing organisation work, discussion among delegates and in political circles centered about the possible action of the legion convention on the bonus and bonus army questions and its effect on the presidential race. Meanwhile, Henry L. Stevens, national commander of the le gion, let it be known that he In tends to protect the good name of the American from "malicious slander" in releasing an excerpt from his annual report to be de livered to the convention. Com mander Stevens released a por tion of his report just before he left for San Francisco where he (Turn to page 11. col. 4) Liquor Causes Loss of License For 16 Drivers Intoxicating liquor was respon sible for revocations of 16 motor vehicle drivers licenses dnring the month of August, Hal E. Hoss, secretary of state, announced yes terday. There were 38 license re vocations In August a year ago. Reckless driving resulted In seven license suspensions in August. Other suspensions involved a hit and run driver, an operator who failed to report an accident, and a driver whose operations contri buted to an accident resulting in a fatality. Bootleggers In New York from the White House Friday. When Robins failed to keep his engagement Tuesday the Whit House began making inquiries. Federal Investigators were plac ed on the case, but have reported no tangible results. The Inquiry is proceeding quietly with New York police also working on the case. Expressing alarm and disclos ing that her husband had received threatening telephone calls Aug ust ( and 7, Mrs. Robins said she had been unable to find any trace of -him since he was last seen Sat urday at the City dab la New York. The anonymous persons predicted serious consequences if he did not cease his prohibition efforts. Clue were few. Mrs. Robins said the last person known to have seen her husband was Alex Gum- berg, a New York friend of his who wrs with him at the City dab Saturday. Robins has been active against liquor violators la Orlan do county. Florida. Colonel Robins was la the Kloa- (Turn to page1 11. eoL 4) COMMANDER SCORES FIREMEN TIE GAS CIRCUIT COURT Hulsey and Lewis Maintain Commission Refused to Hear Testimony Avers Commissioners Acted In High-Handed and -Illegal Manner Petition for a writ of review In the circuit court here war filed yesterday by R. O. Lewis and Ho mer M. Hulsey. discharge! o m embers of the Salem fire depart ment. Lewis and Hulsey ask the court to review the proceedings ef the civil service commission ef Salem which allegedly refused to hear their testimony regarding their rights to steady work nadtr the civil service seniority ruling. The petition names Paul V. Johnson. A. H. Moore and Lloyd T. Rigdon, members of the civil service commmisslon. aspartVs defendants. It asks that the cewrt review all the actions of the com mission on the Lewis and Hulsey eases and to take into aeeenat the status of John A. Olson, la cumbent firemen, who was rent stated In July and who took the Job formerly held by Lewis. Claim Body Acted in High-Hand Way The petitioners claUn the com mission acted summarily, in a "high-handed, capricious and Ille gal manner" In refusing to hear the testimony of Hulsey and Lew Is regarding their seniority rigftr in the fire department. Counsel for the petitioner claims that ample evidence exiMs to show that Olson resigned as a member of -the fire department February 1, 1931. then went into the floral business and was net reinstated until June 20. 1931. Lewis Joined the department May 26, 1930. and Hulsey December 26. 1930. and served continuous ly, counsel contends. Olson's res ignation, therefore, places hlsa junior in seniority to Lewis asd Hulsey, the petitioners' attorneys claim. Olson Testimony Included Also Accompanying the extensive pe tition of Hulsey and Lewis to tie circuit court, is a complete trans cript of the somewhat stormy pro ceeding engaged la before the city civil service commission ea the nigat the Lewis and Hulsey hearings were to be held. The transcript of the testimony taken in the Olson case is also give a. Olson having been heard la July and reinstated in the department. The petitioners claim there la nothing in the civil service eod approved by the people at the May 1932, election, to prevent the dis charge of eight firemen for rea sons of economy. The plaintiffs contend that elimination of fire men, except for cause, must be by seniority. The writ of review marks the first appeal from the civil service commission's acts. The commis sion was appointed after the cit izens approved civil service for Salem. The cases of Hulsey and Lewis are deemed especially im portant locally as precedent fer future actions of the local com mission. The case of Olson aroused es pecial interest at the time it was heard due to the fact that O'mob had Teceived six vote-., for fire chief this year against eight for Harry Hutton. incumbent. It was said there was some misunder standing within the department over that situation. Attorneys locally for the peti tioners are Moynihan and Thomp son. Thomas G. Ryan, of Part land, who drafted the local civil service code, also represents them. Dorm Board is Cut 50 Cents To $530 Week A reduction of 50 cents a week in the cost of board for men at the dormitories at the University of Oregon and Oregon State collere was announced at the office ( the state board of higher educa tion Thursday. This action, tak en by the hoard at their meeting September. 8. makes the board rates for both men and women on both campuses $3.50 per week. Board for men had beea $6. at both institutions. Board at- the dormitory at the Oregon Normal school at Monmouth is $5 a week and board and room $6.50. Band is Giving Annual Concert i At Institutions Following Its usual custom, the Salem' municipal band will to night present it annaal. concert at the state hospital for pleasure of . the Inmate there, v Similar concerts hate beea given . with la the past two weeks at the feeble minded Institution and the tuber culosis hospital. Sunday. Sep tember It, the hand will play at the state prison. : Oscar Steel hammer, county assessor, 1 ut- rector; V V
