; WEATHER'. . : Fog .today aad 'Monday, moderate temperature; Max. Temp. SaturdajStlMfn. 84, rain .OS lath, river U feet,. Tariable wtnda. - Section Two Pages 1 to 6 .FOUNDED 1851 EIGHTY -SECOND YEAR Salem, Oregon, Sunday Morning, December 4, 1932 No. 216 ,F ILL DOMINATE IT Congress to Open Monday; House Faces Repeal at Initial Session Senate Will 'jog Along for Few Days; Philippine Bill to Come up By FRANCES M. STEPHENSON WASHINGTON, Dec. 3 (AP) Prohibition and farm relief dominated busy conferences on Capitol Hill today in preparation for the opening Monday of the final session of the election-riddled seventy-second congress. Ready to take full command of the government March 4, the democrats in both house and senate assumed leadership. They pointed to the prohibition and agricultural problems with a view to disposing of these, as well as balancing the budget, to make unnecessary a special ses sion next spring. In an unprecedented move. Speaker Garner will go beyond the usual opening formalities Monday and smash head-on into the Issue of repeal of the eigh teenth amendment with a vote scheduled before the day ends. Senate to Await Action by House The senate also is confronted forthwith by the repeal question but leaders tentatively agreed to day to refer the problem to -the judiciary committee pending ac tion by the house. 1 Emissaries from President elect Roosevelt have brought plans for a tax on legalized' beer and for farm relief for enactment at the dying short session of the Hoover administration ana both of these problems will be tackled by the democratic house first. President Hoover went ahead today on his own course and Ideas for the short session in rounding out his annual message and the special budget message which will be presented probably on Tuesday and Wednesday. Ileer Has no Part In Hoover's Plans Beer has no part in Mr. Hoov er's plans for raising revenue to wipe out the new deficit piling up at the treasury. Instead, he is expected to urge a moderate man ufacturers' sales tax. The House ways and means commttee will open hearings next veek on legislation to legalize beer with a view to tapping this source of revenue. The senate will Jog along early ti the week on largely routine business. On Thursday the bill lor Philippine independence, al ready passed by the house, is the special order. Several days of debate are in prospect, with pass age probable. HE S1FEMDS Heavy safeguards against re petition of the incendiary fires which occurred here Friday morn lig were being maintained last Bignt. All city firemen were placed on 24-hour duty, watch men at industrial plants were in creased and five Southern Pacific railway special agents arrived here, it was understood. The rail way officers were believed sent to protect the Southern Pacific's warehouses here and at Indepen dence. While firemen and police were not inclined to believe the arson ist, if such it was that started the fires, would strike here again aoon. they were prepared to act Quickly in case of emergency. Generally It was thought the fire "bug ' would move on south. Last lines of hose were with drawn from the Producers Coop erative Canning company ruins late yesterday. Firemen said round 4000 feet of hose was in use at the height of the fires Fri day morning. The department had bout 3000 feet In reserve in the towers. at Central and East sta tions. Ford Goes Home After Operation DETROIT, Dec. S(AP) Henry Ford, who underwent an operation for strangulated her nia and removal of the appendix a week ago, was removed to his Dearborn home from Henry Ford hospital tonight. Mr. Ford left the hospital after about halt the usual time for patients In similar cases. Coif Ball Might Add to Pleasure t HEALDTON, Okla., Dec S (AP) Av P. Baiter's Job Is wnlktng 240 miles of It a week. lie's a pipeline walker between Roosevelt and Healdton. He ar rives hers each Sunday, rides a bus back to Roosevelt, rests a cav and then starts oft on. his ID SESSION HI week's "stroll." Credited With v Unique Rescue The hero of a Uirilling lifesaving feat at Hoover dam, Oliver Cowan, construction worker, Is shown in Los Angeles on the first lap of his Journey to Wash ington to receive the Carnegie medal for his act. While sus pended from a 600-foot cliff. Cowan grabbed the body of E. E. Rutledge, an inspector, as it hurtled by him after falling from the top. Although the safety belt he wore was made to support only bis own weight, iC held and both were rescued. S Contracts Totaling Above $38,000,000 on Coast Shown in Report SAN FRANCISCO, Dec. 3. (AP) The far west heard en couraging news today from the grinding gears of the construction industry. New contracts were awarded at accelerated speed dur ing November, the total exceeding $38,000,000. The Increasing velocity of this assault on the depression Is shown by comparison of the last two months' contract figures. No vember's total awards were more than four times the October ag gregate of $9,018,000. and nearly four times the September Bum of around 110,000,000. These figures, compiled by A, G. Darwin, managing editor of Western Construction News and Highways Builder, shower an ag gregate of contracts awarded in the last three months, of $58,' 7,000. Most of this work is under way, though some of It, particu larly Golden Gate bridge con tracts, remain to be started. Work on the bridge will begin about mid-December. In addition to these contracts already awarded there is $8,754, 000 worth of work on which bids have been received, the $19,250,- 000 on which bids have been call ed, and the $126,000,000 con t em plated on major projects so the 11 western states faced the cheer ing outlook for a total of more than $212,000,000 expenditures on construction. In the bids received one for $274,550 for the Umpqua river jetty in Oregon is Included. In eluded in the bids that have been called for is $550,000 for repairs on the Jetty at North Yaaulna bay, Oregon. logon nldfs OREGON CITY TO VOTE .OREGON CITY, Ore., Dec. 3 (AP) Oregon City voters will go to the polls Monday to decide whether or not the managerial form of government now in Its eighth year shall be revised and the financial program changed. Initiative petitions have been filed to put before the voters two charter amendments, one to con solidate the offices of eity man ager and engineer, eliminating the latter, and the other to change the term of offices from six to two years. This action would result in ending the 'terms of Mayor O. A. Pace and Commis sioners C. H. Caufield and L. O. Harding If the measures are fa vored by voters. INJURY IS SERIOUS PORTLAND, Ore., Dec 3 ( AP) A holdup man was in a hospital here tonight with a ser ious head injury as a result of an attempt to rob several customers in a soft drink parlor today. Walking Into the parlor, the man who said he was James Blythe and had recently arrived here from California, produced an automatic pistol and ordered the patrons to line up.. A passerby saw his action and called Patrol man Spaugh, who walked Into the store and shoved his gun Into CONSTRUCTION IBlythe'i back. THREAT HURLED Br LEADERS Of1 "Forcible .Action" Will be Used if Necessary Says Herbert Benjamin Police Ready, Troops Will Back Them up; Veterans And Klan may Help WASHINGTON. Dec. 3. (AP) A national capital fully prepar ed for all emergencies listened In tense silence tonight to a threat of "forcible action" voiced by leaders of demonstrators ap proaching the city. Herbert Benjamin, one of the sponsors of the march, said such a course would be followed, if nec essary, to overcame superior po lice force. Orders went out to 350 firemen to take a temporary police oath tomorrow. Thus the strength of the police force will be raised to about 1750 by the time the first contingents of marching demon strators reach the District of Col umbia line. Back of this force are some 10,- 000 federal troops, national guardsmen and marines and sail ors subject to momentary call in nearby posts. Army Officers on Watch for Trouble The army general staff had of ficers on duty today receiving po lice and governmental agency re ports of the clashes In other cities between the marchers and author ities. Across the Potomac river In Vir ginia, a Ku Klux Klan unit was ready to help the police. Its lead er said the unit would swing into action if there were any disorders. Several American Legion posts have informally offered to assist the police. Benjamin's reply to these offers was the marchers ' can handle them quite well." To assist Benjamin with his problem of finding lodging for the marchers, three of the delegation of nine women who came from New York yesterday to seek fed eral aid for the demonstrators, stayed In the city. The others re turned to New York after they had been refused an audience with President Hoover. Those who re mained were Mrs. Polly Chase Boyden, Mrs. Belle Taub and Miss Sylvia Feuingston. all of New York. DECIDE IS III CINCINNATI, O., Dec. 3 (AP) Thirty-five persons who ought to know have decided this Isn't, a hymn writing age. As representatives of three Methodist demonlnations the 35 have spent the last four years de ciding the songs some 16,000,000 Methodists will sing after 1934, when a revised Methodist hymnal will be Issued. They found, regretfully, ac cording to Dr. John W. Langdale of New York, chairman of the edi torial committee of the revision commission that modern song writers don't produce effective hymns. Hundreds of budding com posers submitted their works, but very few were considered worthy of a place in the new hymnal. As to what songs the commis sion selected, -there was not a word except that the old favorites would predominate. CAPITAL MARCH Mime Manager Plan On Trial Bandit Kicked, Caught School Budget Defeated News Case is Concluded The gunman reached for the officer's weapon and In the ensu ing straggle his gun was dis charged and be was kicked in the head when others rushed to the aid of Spaugh. Hospital attendants said the condition of the injured man was "fair", late today. Information gleaned as a result of the affray caused police to ar rest Edwin A. Ware, 37, whom they said was Blythe's partner. KLAMATH VOTES "NO" KLAMATH FALLS, Ore., Dec. 3 (AP) The budget for the elementary schools of this eity was defeated by a vote of .the tax payers here tonight. Almost 100 more votes were cast against the budget than were cast favoring it. The reverse marked the first time in the history of Klamath Falls that taxpayers took this ac tion. EMPLOYES ARE PAID MEDFORD, Ore., Dec. 3 (AP) Settlement out of court, by stipulation of the receivership pe tition of H. T. Hubbard, and three other former employees, against the Medford News, morning paper was announced in circuit court! today. Attorneys announced that the four creditor-employees "received a goodly portion of wages due." Soon to Invade American Films V ST VH 7 Having won renown In her own country. Miss Vera Kngels, noted German film and stage beauty, is now desirous of add ing Hollywood fame to her oth er laurels. She Ls shown arriv ing at New York on the g. S. Bremen. She is a brunette with blue eyes. L E Independence Girls Place First in Song Contest; 200 Attend Sessions Approximately 200 young wom en, high school deans, principals and superintendents were in Sa lem yesterday to attend the an nual Girls league conference held here. Cities from over the north ern section of the state were among those represented. The morning activities took place at the Salem high school building, with Fred Wolf, princi pal,' giving the address of wel come. Dean Jamieson of Oregon State college spoke on "Notes on the Scale," discussing the rela tionship between the dean and the girls In high school. Delegates met at the Masonic temple for luncheon at 12 o'clock, with decorations and program fol lowing the Christmas "holly tree" idea. Those responding to toasts were Louise Latham of Sllverton, Constance Humphrey, conference president; Gwen Gallaher, presi dent of Salem Girls league, and Mrs. Hazel P. Schwering, dean of women at the University of Ore gon. Recognition ceremonial serv ice was held by girls from Frank lin high of Portland. Following the luncheon the girls met together for a general discussion while Superintendent Robert Goets of 8ilverton address ed the deans In a group. In song contest held follow ing the discussion, the girls from Independence placed first, Oregon City second and Corvallis third. The business meeting to elect officers which was to conclude the day's program was postponed un til the spring conference. Policeman Says Medicine Cause r t r r " f Uf HlS COll3DS6 PORTLAND. Ore., Dec. 3 (AP) C. E. Mueller, special po liceman, has been suspenaeo un til investigation of his claim that medicine given him by a. druggist to ease pain had caused an ar rest, early Friday, on a eharge of being drunk. Mueller, supposed to have been on duty, was alleged to have been found on the floor of a restaurant kitchen by members of the reg ular force. Von Schleicher BERLIN, Dec. 3 (AP) Gen eral Kurt Von Schleieher suc ceeded today In drawing up a vir tually complete cabinet list and President Von Hlndenburg affix ed bis signature to the general's i appointment an chancellor of the Reich. The president approved a min istry in which the portfolios of ; agriculture, and economics were, tor the time being, left blank. New Party Plan Is Taking Shape NEW YORK. Dec. 3 (AP)- A national Joint conference of all interested groups will be held ear ly next year to form a 'united new party", it was announced to night by Howard Y. Williams, na tional director of the league for independent Dolitlcal action. Dr. John Dewey, liberal leader and Columbia professor, beads the league. GIRLS FINISH n CITY'S BUDGET TOPIC. MONDAY T Taxpayers to eye Proposed Expenditures; Lively Session Forecast Municipal Dock, Committee On Committees Other Items on Docket Taxpayers, the municipal dock bill and the annual contest over election of the committee on com mittees will face city aldermen at the council meeting in the city hall tomorrow night. The taxpayers at the annual meeting to investigate the proposed budget. usually pro vide colorful variations to council sessions and the dock measure al ready has been the cause of heat ed discussions. Offered the taxpayers is a 1933 city budget reduced 3.2 per cent over that for 1932. The total city levy to be asked is $363,710.38, or $11,123.03 under the 1932 tax. Of the total tax planned, $176, 972.83 will be for funds voted by the people in charter amendments, $16,000 estimated miscellaneous Income, and $182,393.89. the tax levy under the 6 per cent limita tion. Failure of the proposal to re turn to the mayor the power to appoint committees leaves the council again virtually In complete control of city activities and the mayor still without any consider able say in the government since the council committees direct the activities of the various city de partments. This power was appro priated by the council during the term of T. A. Llvealey as mayor and twice since has been subject of restoration moves on the part of certain aldermen. Amended Municipal Dock BUI Coming Up The municipal dock bill, which would enable the city to deed over certain waterfront property to a non-profit terminal corporation In order to obtain a 25-year loan from the Reconstruction Finance corporation, was re-referred to the utilities committee for re drafting at the last council ses sion. Aldermen objected to the fact that the initial draft of the bill did not provide that the prop erty should revert to the city. The Investigation of the police department, incited by charges made verbally by J. D. Hartwell at the last meeting, may get un der way after tomorrow night, when H. H. Vandevort says he will submit his resignation as chairman of the committee be cause he is an uncle of Officer Frank Wlnslow. Charges were in ferred against Winslow. BE EYED TUESDAY Meeting at the unusual hour of t p.m., Salem school directors Tuesday will give the district's tapayers their annual opportun ity to scan the new budget and voice approval or disapproval of its nroposals. The directors, de spite large cuts in teachers' sal aries and other Items, will show a tax reduction of only $4515.43. because county and state rev enues are falling. The Hem of supervisors salar ies, which created a furore at the i taxpayers session last year, is absent from the 1932-33 bud- I get. The Instructors rated as su- taxpayers' session last year, is Ipervisors are now handling more classes and devoting leas school time to supervisory work, Sup erintendent George Hug has pointed out. The budget calls for a district levy of $195,184.57 under the six per cent limitation and $56,- 000 for redemption and Interest on bonds. The largest single Item in the budget ls for Instruction, $243,125, a reduction of $31, 500 over the year 1931-32. Ku MDin PORTLAND, Ore., Dec. 4 (AP) A fire, starting shortly after midnight, was gatting a three story building occupied by the B. E. Davis Electric Co. here. Practically all of the down town fire apparatus had been called to the scene of the blame bat it was apparent that flames would sweep the entire struc ture before firemen could get the fire ander control. Flames and dense smoke at tracted a large crowd of late theatre goers to the blase. ' The electric company deals in machinery soch . as pumps. hoists and motors and damage Is expected to be heavy. MAYOR REELECTED VANCOUVER, Wash., Dee. I (AP) J. P. Kigglns, present mayor of Vancouver, was assured ot reelection to the office here to night. Mayor Kiggins recelred a total of 20 7 S rotes against 1805 polled by bis oppenent, F. P. Car son. ? COUNCIL IE SCHOOL BUDGET 10 State Property Tax of $170,000 In This County Spoils Reductions; Sales Tax Big Issue Battle Over Of Relief Impending Up-State Counties Reveal Sentiment for Sales Levy, Retailers Bitter Opponents; Other Political Developments are Seen By SHELDON F. SACKETT OREGON'S budget and tax dilemma remain paramount in state political interest as December speeds on and legis lature time approaches. Conflicting views on the proposed tax are appearing among legislators and In tax groups throughout the state. Anti-sales tax thinkers center their argument on the trite statement that the way to avoid O taxes is to cut down expenses; re- duce the state budget and have no sales and no property tax, they contend. On the other hand, sentiment ls arising In counties In eastern Ore gon and others similarly situated, holding that a sales tax ls the only alternative from virtual Insolv ency of these districts. A three to four-mill property tax levied for 1933 for state purposes and pay able in cash will Just about com plete breakdown of the financial structures of these counties, claim these pre-sales tax groups. Frank J. Lonergan, speaker of the 1931, house, is definitely committed to a sales tax and ls using his sledge hammer speaking ability to ad drees Portland clubs, explaining the necessity of the levy. Constitution Makes Land Levy Necessary What most tax groups fall to understand is the constitutional necessity ot levying a tax next year to cover the state deficit es timated at $3,800,000 as of De cember 31, 1932. Even If the state could run Its business entirely on miscellaneous income the next year, the state tax commission ls constitution and code bound to levy for the deficit. Furthermore the state must provide for expend itures over which the legislature has no control; chief among such expenses is the annual mlllage outlay for state higher education. This was voted a decade ago Dy the people; the legislature and the tax commission have notnmg to do with the millage and cannot reason wny; an euner can ao w to dig up the money. Retail merchants in the state are organinng 10 ngni me iax which if raised, will probably come up in a special session called Immediately after New Year's, a session to blend into the regular 1933 session which opens January . If this session ls not called, the sales tax will drag along, it will probably be referended If passed through the legislature and by the time an election can be held, the property tax which sure ly must be levied this December, will be operative and financial disturbances in a doxen counties in Oregon will be marked. However the retail merchants will be powerful In their appeal: they will claim the tax will dimin ish margins already too low ana also will be passed along to the consumer, now unable to provide sufficient buying power for ordi nary needs. A federal sales tax also Impends and will be used as a counteracting force to a state sales levy. Holman Becoming Notably Independent Rufus C. Holman, state treas urer, gave clear indication mis week that the "mandate of the people given him November 8 en titles him to go berserk at times with Governor Meier. Holman has always been an Individualist, con vinced that he alone among thou sands of office-holders and seek ers represents The People. He may be expected more and more to as sert his political Independence and to fuss and fume In affairs of the state. As long as the existing Meler-Hoss tleun continues. Hoi man as a lone wolf on the board of control is checkmated; It ei ther the governor or Hoss votes with him, certain political execu tlons are certain. Holman ls bent on Einzig's bald scalp. He has not forgotten the Insult to "American womanhood." Nor does Holman like Charles Pray, state superintendent of po lice, who has refused consistently to make political appointments In that department. Holman's wrath ls also rising against Utilities Commissioner Thomas. In the Holman clique Is Judge L. H. McMahan who continues to grind out political .. propaganda and answers charges against his own failure to cut salary by a cry ot wolf and graft. With the Hol man lineup will probably go Sen ator Burke of Yamhill county: like the treasurer an ardent advo cate of public ownership of power. Senator Charles K. Spauldlng ana McMahan (have always trained to gether: the former will be a nu cleus for Holman's wing of state- house politics expressed Jn the senate. I There has been renewed talk that the office of budget director (Turn to page 2, col. 4) Method M Mill TAKES PAY .TO Tenders $25 Check, County Relief Fund After tax Payers Investigate Judge L. H. McMahan climbed aboard the salary reduction wag on yesterday and tendered a $25 check to the county relief fund the first donation to that charily he has made. McMahan said he would give a similar amount this month to the Linn County relief fund. He Indicated that the con tributions would be made month ly. Heretofore McMahan has re turned none of his $500 a month salary to the state nor to the coun ty. Last winter, when all other county employes donated a day's salary a month to relief work, Mc Mahan gave nothing. McMahan's action followed a probing of his position by the Marion County Tax Equalization and Reduction league. He told that body flatly that he would return nothing to the state treas ury to use in "further graft." He did indicate he was not adverse to giving something to the coun ty. Earlier this falV the majority of county employes agreed to give one day's salary a month to the county relief fund. Much of this money is going to aid Community Service in its work here. The majority of circuit judges in Oregon began a 10 per cent re bate of salaries as of July, 1. 1932, In response to Governor Meier's request. McMahan's action yester day makes -him the 27th out of 28 judges in the state to make voluntary adjustments in their salaries. Al J. Rousseau Dies Suddenly At La Grande Al J. Rousseau, proprietor of Al's Super Service station. Church and Center streets here, died last night suddenly at LaGrande after ending his day's work, according to word received by Salem friends. Details were meagre. When the new motor vehicle operators' licensing law went into effect over a year ago, Rousseau became examiner throughout east ern Oregon. He had been working at this Job ever since. He Is known to be survived by a daugnter at Eugene ana a niece. Mrs. Ben Flaxel of North Bend. Delinquent Up; Total The amount of delinquent taxes 1 keeps piling up, according to stu- i dies completed by the state tax commission for the information of the legislature. It amounted on November 15th to $34,205,388. which la equivalent almost to the total taxes assessed last year on local property exclusive of util ities. The delinquencies by years of the- rolls are: Prior to 1929 $4,297,920. 1929 4,055,507. 1930 , 9.975.000. 19S1 15,889.911. Marion county's delinquency ls only 4.1 percent on the 1929 roll, 18.4 on the 1930 roll and the suamary' shows no report from this county on the 1931 roll. Of the counties listed Multnomah appears to have the lowest record with 29 percent on the 1931 rolL The highest is Curry county with 78.8 percent of the 1931 roll un collected. Other "high" counties are Grant, 70 percent, Wheeler, I7.S percent: Coos, 3.2 percent. . Eastern Oregon as a whole has a far greater delinquency than westers Oregon, except some of the coast counties, practically, all of eastern Oregon having a de CIBITT Expected ED TO PLAGE ITE1 IN ITS BUDGET Estimated $250,000 Saving Mostly Wiped out When Bad News Arrives Officials Work on County's Figures for 1933 Levy; Aides not Chosen Although the Marion county court, Bitting prior to the budget committee meeting next Wednes day morning, has already pared a rough 1250.000 from the 1933 budget, the actual reduction may amount to only a few thous and dollars. This became apparent yester day morning when the state tax commission Informed thf county court that an estimated $170,000 must be included in the Mar ion county budget for state tax. This, though it must be provid ed for In the budget, may never be collected, is a safety for the state budget, in case the pro posed sales tax falls to materi alize and state property tax is again resorted to to balance the budget. The "county court's efforts to trim the budget to permit a sizeable reduction to the tax payers meets a stone wall in the $170,000 added state tax, and. members of the court and the county clerk and the clerk's chief deputy were plainly discouraged when they finished a long day's work yesterday Diacoa raged Dae to New Development "We try our best to shave to the limit; but what can we do against this state tax . . . the huge cut we have made in the county road costs in effect dwin dles to $34,350 in the face of the $170,000 addition to the bud get," County Judge J. C. Sieg mund said in voicing the feelings of the group. - The county court, working pri or to the first session on Wed nesday, December 7 at 10 a.ro., of the budget committee, bad yesterday sliced a total of $204.- 350 from the road Tunas, in cluding $75,000 from county roads, bridges and ferries; $35,- 000 from market roads; and $94,350 from market road bonds and interest redemption. The court has not yet named the three citizens who will sit with it in the final shaping of the budget beginning Wednes day. The final hearing on the budget will probably come De- cember 29 or 30, depending un- on how soon the committee ishes its work. School Funds Show Probable Decrease Other reductions which fin- the court was able to Indicate yes- terdav Include a drop of $19,209 in the high school fund; drop of $7000 In the elementary fundj cut of $5195 from registration and election costs; and decrease of about 10.5 per cent in the of fice of county assessor. All departments will undergo some reduction in the end, al though so far the actual figures are not known, as some Items have been sliced and some hare necessarily been Increased slight ly. Taxes Piling is $34,205,388 linquency exceeding 50 percent or hovering around that figure. The eastern Oregon counties-above 50 percent are: Crook 5 I.e. Gilliam 51.1, Grant 70. Harney 6.f. Jer- ferson 50.9, Malheur 51.0. Sher man 53.7 and Wheeler 7.8. Those lust under 80 percent are: Baker 47.01, Deschutes 40.9, are: Baker 47.0, Deschutes 40.9, Hood River 47.4, Lake 40.1. Mor row 49.L Union 47, Wasco 43.4 and Klamath showing the best of any of the eastern Oregon coun COURT ties with a delinquency or oniy 33. Ot the counties west ot the mountains, only two show higher than 50, Coos with C3.S and Cur ry with 78.8, while the majority ran along about 30 to SS percent with Multnomah lowest at 89. In one of the eastern Oregon ' counties, of the 81 percent col lected. 4 was paid by the rail roads and utilities, shoring that only six percent ot the ordinary property owners: have been able to meet their taxes In that coun ly. Similar conditions obtained in ; all of the other counties and had : the railroads and electric utilities (Turn to page 8. eoL.5)